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Obasanjo Laments Nigeria’s High Debt: I Left Billions, Now We’re in Debt’

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Former Nigerian President Olusegun Obasanjo has raised grave concerns over Nigeria’s mounting debt, lamenting that the nation’s debt today surpasses what it was before he took office in 1999. Obasanjo expressed disappointment, particularly given that he left Nigeria’s reserves at an unprecedented $70 billion when he left office in 2007.

Obasanjo, who served as president from 1999 to 2007, made his views known in an exclusive interview with Kayode Akintemi on News Central Television. He did not mince words, stating bluntly that “today, we owe more than we did when we came to government in 1999.”

He explained that when he assumed office, Nigeria had a debt of nearly $36 billion. According to him, the country was spending a staggering $3.5 billion annually to service these debts. “When I took over in 1999, our foreign reserve was at $3.7 billion, and we were struggling under the weight of debt,” he said.

In his tenure, Obasanjo negotiated debt relief that significantly lightened Nigeria’s debt load. By the time he left office, the country’s debt had dropped to around $3.5 billion. “Through the debt relief efforts, we were able to bring it down,” he added, recounting the monumental task of reducing the burden for Nigeria.

Obasanjo emphasized that by the end of his administration in 2007, Nigeria had accumulated $45 billion in reserves, plus an additional $25 billion in an “excess crude” account. The “excess crude” account, he explained, was a savings account funded by oil revenue earned over budgeted estimates. “This was our way of preparing for rainy days,” he stated.

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In total, Nigeria’s coffers stood at $70 billion when he left office. However, Obasanjo was dismayed to note that this amount has now “gone,” with Nigeria instead returning to a heavy debt load. “Not only is that money gone,” he said, “but all the money earned in subsequent years has also been depleted.”

Obasanjo attributed this situation to poor leadership and financial management. He criticized successive administrations for what he described as reckless spending and a lack of accountability. “Where has all the wealth gone?” he asked, challenging current leaders to account for the nation’s financial status.

His words come at a time when Nigeria faces a national debt of over $100 billion. Many economists and financial analysts have expressed concerns over the country’s reliance on loans, particularly from foreign creditors. Observers note that debt servicing now consumes a large share of Nigeria’s budget, further limiting funds available for critical projects and services.

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