Obasanjo faults Africa’s $1.13trn debts pile

..says debt relief impossible amid mismanaged resources

Former President Olusegun Obasanjo has said that it will be impossible for African countries, especially Nigeria, which is one of the largest debtors in Africa, to get debt relief from the multilateral organisations, considering its sheer extravagance and mismanagement of available resources.

Recall that Akinwunmi Adesina, the President of African Development Bank (AfDB) said last year in a speech he delivered at the Paris Club that the Africa’s external debt would, at the end of 2023, hit $1.13 trillion due to rising interest rates and costs of debt servicing, leading to 25 countries in Africa being either at risk of high debt distress or in debt distress.

Also, Nigeria’s Debt Management Office said in December 2023 that the total public debt rose to N87.91 trillion in the third quarter (Q3) which accounts for both domestic and external debts of the Federal Government, 36 States and the Federal Capital Territory, Abuja.

Worried by the debt scenarios across African continent, Obasanjo declared that there would be little or no option for the next generation of Africans to secure debt relief for the continent from her huge debts owing various multilateral organisations.

While recalling what he did in 2003 as Nigeria’s president to secure debt relief for the country, likewise Abdelaziz Bouteflika, his counterpart in Algeria at the same period, Obasanjo noted that with the way previous debts were mismanaged having been written for the country, it would be almost impossible for any administration to get similar gesture on the continent.

Speaking during an engagement with the 2023 Awardees of the Future Africa Leaders Foundation, an initiative of Chris Oyakhilome, Obasanjo submitted that debts are a trap that no individual or nation should fall into as it constitutes an albatross on any economy.

The former president, who said leadership is the number one problem facing the African continent, noted that “the coming generations will have no choice but to pay the current debts being incurred by different countries on the continent.”

He lauded Oyakhilome for the efforts being put into building leaders, adding that “the nation needs more people like him (Chris Oyakhilome) to address the leadership crisis facing the continent.

Highlighting the qualities a leader should have, during the Question and Answer Session, Obasanjo said, “A leader should be able to set good examples; be bold and courageous when making decisions; accepting mistakes and learning from them as well as having a realistic dream.”

In a related development, the former president assured Nigerians that the country’s socio-economic situation could be better in another four years or thereabouts with prayers and thanksgiving.

He made the statement at the 5th Thanksgiving Service organised by the Christian Association of Nigeria (CAN) Ogun State where Olusegun Obasanjo was conferred with a chieftaincy title of Asiwaju Onigbagbo of Ogun State held at the Olusegun Obasanjo Presidential Library (OOPL), Abeokuta on Tuesday.

A press release issued by Kehinde Akinyemi, Obasanjo’s media aide, said that it was a clear indication that the socio-economic situations of the country are not in good stead, adding: “But, mercy has been with us and if that is so, why should we not thank God.

“Think about it. If you have breathed the free air of God, you should have cause to thank God. So, things are bad, they may be good in a space of what… four years? and who knows for Nigeria, things that are bad today, may be good tomorrow.

“That is our prayer and that is why we must never stop thanking God. In all situations, give thanks to God”, Obasanjo told the Congregation as he burst into a joyful song.