Former President Olusegun Obasanjo has strongly criticised President Bola Tinubu’s position on government borrowing, describing the assertion that borrowing is not leprosy as “absolute nonsense”.

Obasanjo warned that Nigeria’s growing debt burden could have devastating consequences for generations yet unborn, arguing that the effects of excessive borrowing are more far-reaching than those of leprosy.

The former president made the remarks at the Ajibosin Platform, a public forum held in Abeokuta, Ogun State, with the theme, “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development.”

His comments were a direct response to Tinubu’s earlier declaration that borrowing should not be regarded negatively, insisting that his administration would continue to borrow whenever necessary.

The President had said in April, during a meeting with Plateau State leaders at the Presidential Villa in Abuja, that borrowing was not a problem provided the country worked hard to repay its obligations.

“If we have to borrow, we borrow. Borrowing is not leprosy; we just have to work hard to be able to pay for it,” Tinubu had said.

However, Obasanjo rejected the argument, insisting that the consequences of mounting national debts extend beyond the present generation.

“And for anybody to say debt is no leprosy is absolute nonsense. Debt is worse than leprosy. Because leprosy destroys only one person. Debt destroys generations,” he declared.

The former president also expressed concern over the dramatic depreciation of the naira against the United States dollar, questioning what Nigeria had achieved economically over the past 47 years.

Recalling when he established his farm nearly five decades ago, Obasanjo said the naira exchanged at approximately N1 to $1.85, contrasting that with the current exchange rate, which he put at about N1,500 to the dollar.

“When I started my farm, 47 years ago, naira to the dollar was one naira to $1.85. Forty-seven years ago. What has Nigeria done in 47 years that we now have 1,500 naira to the dollar? What have we done?” he queried.

He further questioned the knowledge, competence and capacity of Nigeria’s political leadership to formulate policies capable of improving the living conditions of citizens.

“What do our leaders know? And what do they not know? And from what they know, what can they do for us?” he asked.

Obasanjo also faulted Nigeria’s continued dependence on economic prescriptions from international financial institutions, particularly the World Bank and the International Monetary Fund (IMF).

He argued that the institutions were not established with Nigeria’s peculiar economic realities in mind and cautioned against blindly adopting their recommendations.

The former president recalled that Nigeria had, in the past, been discouraged from providing agricultural subsidies, despite the extensive support given to farmers in developed economies.

“World Bank and IMF were not designed for us. They were not built by us. They were built before we became independent. And that’s the people who would determine what we do,” he said.

He consequently urged Nigerian leaders and policymakers to develop home-grown economic solutions rather than depend unquestioningly on foreign economic models.