From $70bn to bankruptcy: Obasanjo laments Nigeria’s financial mismanagement, mounting debt

Former Nigerian President Olusegun Obasanjo, on Thursday, expressed deep concern over Nigeria’s escalating debt, criticizing the country’s financial management years after he left office in 2007.

In a candid interview with News Central Television, Obasanjo revealed that he left Nigeria with a substantial $70 billion, comprising a $45 billion reserve and $25 billion in an “excess crude” account.

“I came in 1999 and met $3.7 billion in the reserve. And I have told you, we were spending $3.5 billion to service the debts. That’s what we had,” Obasanjo recalled. “By the time we left eight years later, with debt relief, when I came in, we had a debt overhang of close to $36 billion. By the time I left, with the debt relief and clearing what we had to clear, the quantum of debt that I left was about $3.5 to $3.6 billion from over or around $36 billion.”

Obasanjo lamented that Nigeria’s current debt exceeds what he inherited in 1999, highlighting concerns about the country’s economic management.

“At the same time, the reserve that was $3.7 billion when I came in went to $45 billion. At the same time, we had what we called “Excess crude”, which is what is in excess of what we budget and what we actually sell the crude. Normally, we are conservative in budgeting, we call it “Excess crude”. So, we had in it about $25 billion. When you add that to the reserve, we are talking about $70 billion.

“Now, the point is that I left in 2007. Today, between 2007 and 2024, all that amount of money has gone; all of it. Not only that, but all the money they made all that period had gone. And today, we owe more than we owe when we came to government in 1999,” Obasanjo stated.

Obasanjo attributed Nigeria’s economic woes to poor leadership quality, emphasizing the need for effective governance. “I have consistently said that the problem of Nigeria is not money, is not resources, is not population, but is leadership,” he stressed.

Key Achievements of Obasanjo’s Administration

– Debt Reduction: Obasanjo’s administration successfully reduced Nigeria’s debt from $36 billion to $3.5-3.6 billion.

– Reserve Growth: The reserve grew from $3.7 billion to $45 billion, while the “excess crude” account held $25 billion.