By Franklin Adole
Former President Olusegun Obasanjo has in the last 24 hours been at the centre of Nigeria’s debt debate after Nigerians revived an old interview in which he likened government borrowing to the behaviour of “a drunken sailor,” amid fresh warnings by President Bola Ahmed Tinubu that the country could spend as much as $11.6 billion on debt servicing in 2026.
The resurfaced interview, originally granted during the administration of former President Muhammadu Buhari, has gained renewed traction online, with many Nigerians drawing parallels between Obasanjo’s criticism of Buhari-era borrowing and the current administration’s fiscal policies.
Speaking during the television interview, Obasanjo warned against what he described as reckless spending and mounting debt at a time when the economy was already under severe pressure.
“It is dangerous for a government to continue spending recklessly while the country’s debt burden keeps increasing,” Obasanjo said.
“Such actions could create more economic problems and place extra pressure on future generations who would eventually bear the burden of repayment.”
The former president had argued that any administration inheriting huge debts should focus on financial discipline and prudent management of public resources instead of increasing expenditure.
According to him, borrowing should only be tied to projects capable of stimulating development and generating clear repayment value.
“When a country is in serious debt, the first duty of leadership is to control expenses and manage resources wisely,” he said.
“You cannot keep borrowing without a clear plan on how to repay or how the money will improve the lives of the people.”
Obasanjo further warned that wasteful spending by government leaders ultimately deepens hardship for ordinary citizens already battling inflation and rising living costs.
“Public funds must be handled with discipline because waste at the top affects every citizen,” he added.
During the interview, the former president memorably compared the government’s spending culture to that of “a drunken sailor,” insisting that it was irresponsible for an administration confronted with huge debt obligations to continue borrowing without restraint.
The comments have now resurfaced following remarks by Tinubu at the Africa Forward Summit in Nairobi, Kenya, where the president warned that Nigeria’s debt servicing obligations could rise to $11.6 billion in 2026 if prevailing global financial conditions persist.
Tinubu said nearly half of Nigeria’s projected revenue could be consumed by debt repayments, leaving limited resources for infrastructure, industrialisation and social development.
According to the president, rising debt servicing costs are constraining government investment in critical sectors such as agriculture, manufacturing, energy and technology.
“Expensive access to finance remains one of the major obstacles preventing African economies from building competitive industrial value chains and maximising opportunities under the African Continental Free Trade Area,” Tinubu said.
The president also criticised what he described as unfair treatment of African economies in global credit markets, arguing that despite reforms and fiscal adjustments, African countries continue to face high borrowing costs because they are still perceived as high-risk destinations.
Tinubu defended his administration’s economic reforms, including the removal of fuel subsidy, exchange rate unification, banking sector reforms and Nigeria’s exit from the Financial Action Task Force grey list, describing them as difficult but necessary measures aimed at stabilising the economy and rebuilding investor confidence.