Former President Olusegun Obasanjo has shared the strategies he employed to secure significant debt relief for Nigeria during his tenure from 1999 to 2007.
His administration, according to him successfully negotiated debt forgiveness by demonstrating a commitment to transparency and accountability.
Upon taking office, Obasanjo noted he faced daunting challenges, including a $3.5 billion annual debt servicing burden and a total debt of approximately $36 billion, with the nation’s reserves at a mere $3.7 billion.
Having recognized the need for debt relief, despite skepticism from many, he established the Independent Corrupt Practices & Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to combat corruption and mismanagement.
These reforms, he said, were crucial in convincing international lenders to write off debts.
Obasanjo said, “When I became elected President of Nigeria, one of the things that worried me and that I wanted to do something about was debt relief.
“Many people inside and outside Nigeria thought it was a bad dream, but I was convinced.
“Of course, if you remember one of the first bills that I sent to the National Assembly was the ICPC bill to fight corruption. I followed that up later with the EFCC bill, again to fight corruption because the international community knows what you’re doing.
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“So, convinced of the fact that we could not sustain the amount of money we were spending to service debt with the quantum of debt not going down, anytime we defaulted they gave us heavy penalties, and my determination to do what would convince Nigerians internally and convince our development partners/creditors, then it took almost six years before we got there and at the end of the day, they were satisfied.
“I even gave them assurance that the money saved from our debt relief would be spent on the sustainable development goals and that was being done.”
Obasanjo emphasized the importance of presenting a credible and transparent plan to global financial institutions.
“The world out there doesn’t feel that it owes you anything, but if you do what is right, there’s a lot you can get out of the world,” he added.
He also expressed concerns about the current state of leadership in Nigeria, citing a decline in ethical leadership and effective planning.
“Where there is no development, you are actually inviting problems,” he remarked.
Under Obasanjo’s leadership, Nigeria’s debt decreased from $36 billion to $3.5 billion, while reserves grew to $45 billion, supplemented by an additional $25 billion in excess crude accounts.
However, Obasanjo lamented that successive administrations have squandered these gains, citing poor leadership, corruption, and mismanagement.
“The point is that I left in 2007, between 2007 and 2024, all that amount of money had gone,” he decried.
Obasanjo stressed the need for effective leadership, saying, “Leadership is not a thing that you pick on the road, and not everybody is given to it.”
He urged Nigerians to prioritize leadership and development-oriented approaches to overcome the country’s economic challenges.
