OBJ warns African leaders against foreign loan
L-R: Convener of “Why I am Alive Campaign” party, Caroline Moor; Keynote speaker, Former President of Nigeria, Chief Olusegun Obasanjo, Joseph Edgar, Guest Speaker and first and only World’s Heart and Kidney Surgeon, Dr. Olurotimi Badero, and Chairman, Advisory Board, Why I am Alive Campaign, Pastor Ituah Igholado, at the 2029 Why I am Alive Campaign Party and Awards in Lagos at the weekend.
Says Nigeria’s external debt may rise to $111bn in 2020
The two time former president of Nigeria, Chief Olusegun Obasanjo (OBJ) has warned African leaders to desist from taking foreign loans that would turn to debt burden for their countries.
He said leaving a debt burden behind for successive leaders amount to mortgaging the future of that country and that of the generations unborn.
Chief Obasanjo gave the warning while delivering his keynote address which he entitled “The Challenges of Debt and Sustenance of Democracy” at this year’s ‘why I am Alive Campaign’ Party, organized by a Media Personality and Chief Executive Officer of Eureka Production, Caroline Moor, at the weekend in Lagos.
He said a situation where a country is borrowing to service its debts become worrisome and called on all Nigerians to rise up and shout in one voice and call on National Assembly to rise up to its core duty and responsibility and save our children and our grand and great children from being mired in debt.
Chief Obasanjo said although he had been able to secure a $20 billion debt relief for Nigeria during his administration, added that such opportunity may not be possible even as he hinted that “Algeria and President Boureflika has tried everything they could to secure debt relief which I secured for Nigeria, they never get it.”
He said as at 2015, Nigeria’s external debt was about $10.32 billion, adding that in four short years by March 2019, our external debt grew to N24.947 trillion or $81.274 billion, amounting to about $111 billion in 2020.
OBJ explained that to service this current level of indebtedness, the country must commit at least half of its foreign earnings, stating that “such a situation talks about an impending bankruptcy. No entity can survive while devoting 50% of its revenue to debt servicing.”
Continuing, he said, “it has recently been pointed out that in 2018, total debt service cost took over 60% of government revenue. What is more we are not doing enough to address the fundamental, deep-seated and structural challenges that inhibit the expansion of our economy. As if this is not bad enough, we are currently seeking to add another $29.6 billion loan to our already overburdened debt portfolio.”
Expressing his worries on the Nigeria’s debt profile, Chief Obasanjo said, “My biggest worry is that with the scale of debt we are walking into with our eyes wide open, there are already fiscal challenges to meet our obligations. The current situation where we are already spending significant percentage of our budget on debt servicing and another chunk on recurrent expenditure, leaving very little or nothing for capital investments is not a durable and sustainable approach to development and progress.
“This will even get worse when oil with gas that we rely on will no longer command premium demand as in the past.
“I fear for the future we are bequeathing to our children and to their children and their children’s children. I believe that it will be foolhardy, irresponsible and wicked for us to tie a mill-stone of debt around the neck of the successor generations of Nigerians. We need to take hard and important decisions that will facilitate a balanced allocation of resources to both capital and recurrent expenditures.
As a solution, he advised the leaders to look for other options to debt such as global investment and capital market among others.
Earlier in his speech, the guest speaker, the world’s first and only Heart and Kidney Surgeon, Dr.Olurotimi Badero, described Nigeria as a great country.
He called on Nigerians to come together if they must make the difference as a nation, adding that “our strength lies on our diversities.”
“As a people, we must come together. We can make the difference. There is strength in our diversities,” he said.
He urged Nigerian youths to always believe in themselves and focus on their intentions, adding that “intentions without attention will put you in detention.”
“Always be the best. Be yourself and don’t imitate others. Being a Nigerian teaches you to be strong and be resilient. As youths, we should try as much as possible to be the best wherever we are. We should stop fraud and those things that will give us bad name.”
The aim of “Why I am Alive Campaign” party, according to the convener, Caroline Moore, is designed to empower young Nigerians for the future by tapping into key lessons from success stories of eminent personalities that have contributed to the social, economic and political growth of Nigeria.
She called on well meaning Nigerians to look inward and give a helping hand to the needy in our midst as a way of supporting the growth of country.
Nigerian youths who distinguished themselves in their field of profession were given awards as a mark of honour for their contribution to the development of the country.
