# Obasanjo and Tinubu Clash Over Nigeria’s Borrowing Strategy

- Link: https://viralbrief.top/obasanjo-and-tinubu-clash-over-nigerias-borrowing-strategy/
- Published: 2026-10-31T01:21:38+00:00
- Author: Olamide

Former President Olusegun Obasanjo has voiced strong opposition to the borrowing
policies of President Bola Tinubu’s administration. Speaking at a symposium in Abeokuta,
Ogun State, focused on the role of Artificial Intelligence in national development,
Obasanjo characterized national debt as being worse than leprosy, arguing that it
poses a long-term threat to future generations.

## Differing Perspectives on Economic Management

The disagreement highlights a fundamental divide in economic philosophy between 
the two leaders. President Tinubu, who previously stated in April that borrowing
should not be viewed negatively if the funds are repayable, maintains that the government
must borrow to achieve its goal of a $1 trillion economy by 2030. According to a
statement titled _From Reforms to Delivery: Our Infrastructure Investment and Growth
Strategy_, the President emphasized that the focus should remain on the value created
by the projects rather than the total volume of debt.

Obasanjo, however, dismissed the administration’s stance as nonsense. He further
questioned the nation’s economic trajectory by comparing current conditions to those
from 47 years ago, noting that the naira has depreciated significantly from an exchange
rate of ₦1 to $1.85 to the current levels of approximately ₦1,500 to the dollar.

## Infrastructure as a Justification for Debt

The federal government argues that the proposed loans are essential for critical
infrastructure projects. President Tinubu highlighted several key initiatives, including:

 * The Lagos-Calabar Coastal Highway
 * The Sokoto-Badagry Superhighway
 * The Trans-Sahara Superhighway
 * Improvements to the national electricity grid
 * Upgrades to major commercial ports

The administration projects that the Lagos-Calabar Coastal Highway alone could reduce
transport costs by 15 to 20 percent and contribute up to two percent to Nigeria’s
GDP. Furthermore, the government estimates that the project will generate 100,000
direct construction jobs and over 150,000 indirect roles in logistics and supply
chains.

## Concerns Over Oversight and Technology

The government’s borrowing plans have faced scrutiny beyond the former president.
The Nigeria Labour Congress (NLC) has raised questions regarding a recent request
to the National Assembly for approval to borrow $20.5 billion and €1.45 billion.
The labor union noted that these requests persist despite government claims of increased
revenue following the removal of the petrol subsidy.

In the same symposium where Obasanjo spoke, guest speaker and public policy scholar
Umar Ardo provided a separate warning regarding the digital economy. Ardo cautioned
that without domestic investment in chip fabrication, data centers, and indigenous
datasets, Nigeria and the broader African continent risk deepening their dependence
on foreign powers through the adoption of Artificial Intelligence.

## Conclusion

As Nigeria navigates its path toward economic growth, the debate between prioritizing
infrastructure investment and managing the risks of mounting national debt remains
a central point of contention. While the administration views loans as a bridge 
to future prosperity, critics emphasize the potential for long-term economic instability.

<

p class=”vbna-source-note”>**Source:** [Channels Television](https://www.channelstv.com/2026/10/30/debt-worse-than-leprosy-destroys-generations-says-obasanjo/)

  TL;DR (AI Generated)

Former President Olusegun Obasanjo strongly criticized President Bola Tinubu’s borrowing
strategy, comparing national debt to leprosy and questioning the country's economic
trajectory.

In contrast, the Tinubu administration defends its loans as essential for funding
critical infrastructure projects necessary to achieve a one trillion dollar economy
by 2030.

Additional scrutiny has also come from the Nigeria Labour Congress and policy experts
who question the necessity of these massive loans despite increased government revenue.

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