Former Nigerian President Mr. Olusegun Obasanjo has urged African leaders to cut back on government waste, combat corruption head-on, and support resource mobilization.
He claimed it would be essential to freeing its people from poverty and escaping the bonds of ongoing debt crises and dependency on foreign organizations for the continent’s growth.
Speaking to a group of former African heads of state during the 2025 African Export-Import Bank (Afreximbank) Annual Meetings in Nigeria on Friday, June 27, Mr. Obasanjo made this statement while reflecting on his tenure as head of state from 1999 to 2007.
He mentioned inheriting a country with “empty pockets” and a crippling US$3.5 billion annual debt payment load that used up nearly all of the available resources, while the principal debt stayed the same because of compound interest and penalties.
Given that the issue is still prevalent in many African economies, he suggested three crucial strategies to address it: eradicating government waste, combating corruption at all levels, and strategically mobilizing resources.
Obasanjo urged identifying and reducing excessive expenditures to free up resources while conceding that waste could not be totally eradicated. He also pointed out that dramatic reductions were attainable and necessary for fiscal recovery.
He mentioned a situation in which the Nigerian government borrowed $10 million USD for a project to manufacture palm oil, and even though it withdrew the full amount, no land was cleared and no enterprise came to fruition, but the nation was still required to repay the debt.
After spending 18 months in the National Assembly, the former president said that a proposed anti-corruption law encountered strong opposition, stating, “The members told me that if they passed the bill the way I sent it, most of them would be in jail after leaving the National Assembly.”
He urged modern African leaders to not give up on the fight against corruption, which is frequently waged by system benefactors, saying, “Corruption and development don’t go together – don’t deceive yourself.”
According to him, a persistent effort paid off, as Nigeria was able to obtain debt relief that reduced the nation’s yearly debt service payments by US$3.5 billion. This development took almost six years, but it significantly improved the country’s financial situation and freed up funds for important development initiatives.
“Money to develop is out there, internally and externally,” he remarked, referring to the mobilization of both internal and foreign resources through good policy frameworks and the creation of favorable investment circumstances.
Obasanjo reiterated the significance of putting in place sound rules that encourage foreign investment while guaranteeing funds reach their intended uses when he noted, “It’s how to get that fund mobilized without corruption and waste.”
Given that Afreximbank is dedicated to advancing intra-African trade and development financing throughout the continent, the 2025 Afreximbank Annual Meetings offered a suitable forum for these thoughts.
Afreximbank’s objective is to promote sustainable economic growth throughout Africa by means of ethical financial practices and anti-corruption initiatives, and Mr. Obasanjo’s focus on governance changes, transparency, and strategic resource management aligns with this goal.
Source: newsthemegh.com