The former President of Nigeria, Dr. Olusegun Obasanjo has said that "As at 2015, total external debt was about $10.32billion. In four years, our external debt grew to N24,947 trillion or $81.274 billion. To service this current level of indebtedness, we must commit at least 50 per cent of our foreign earnings, such a situation tells about an impending bankruptcy because no entity can survive while devoting 50 per cent of its revenue to debt servicing.”
“In 2018, total debt servicing cost took over 60 per cent of government revenue. As if this is not bad enough, we are currently seeking to add another $29.6 billion loan to our already overburdened debt portfolio. ”
“Our current budget, out of which we are spending 25 per cent to service debt is not our total earnings, a lot of it is also borrowing. We are borrowing to service what we have borrowed and yet we are borrowing more.”
Recalled that OMOKOSHABAN reported earlier that President Muhammadu Buhari resent a request to the 9 Senates under the leadership of Senator Ahmed Lawan to borrow $30 billion loan. The same request he send to the 8th Senate under the leadership senator Bukola Saraki, that was rejected.
Meanwhile the present Senate President, Ahmad Lawan, has given President Muhammad Buhari assurance that the new request would be approved.
Obasanjo said this , on Friday, he further said that Nigeria President or anyone who engaged in borrowing for the country is an enemy of Nigeria.
He said “when oil and gas that we rely on no longer command premium demand as in the past” stating that ” this is when the real impact of these debts we are piling will start to bite.”
“may never secure another debt relief.”
“For once, all Nigerians need to rise up and shout in one voice and call on the National Assembly to rise up to its core duty and responsibility and save our children and grandchildren and great grandchildren from being mirred in debt.”
“The forecasts now are scary. At the present rate, Nigeria’s population by 2050 will be well over 400 million and Lagos alone will be over 40 million. If we continue as we are going now and as we have gone start and stop in the past, we will be one of the most wretched of the world and maybe the most wretched in Africa.”
Obasanjo further expressed displeasure stating that barely 15 years after he work hard to clear Nigeria debt, Nigeria is already once again accumulated huge amount of debt, stating that the development is both “painful and retrogressive.”