Olusegun Obasanjo is a former President of Nigeria

Olusegun Obasanjo, a former President of Nigeria, has challenged African leaders to reduce government waste, fight corruption head-on, and shore up resource mobilisation.

He said that these steps would be pivotal in breaking away from the shackles of recurrent debt crises and continuous reliance on foreign institutions for the development of the continent, and in lifting its people from poverty.

Obasanjo made these remarks during a conversation among former African Heads of State at the 2025 African Export-Import Bank (Afreximbank) Annual Meetings in Nigeria on Friday, June 27, as he reflected on his leadership from 1999 to 2007.

He cited inheriting a nation with “empty pockets” and a staggering annual debt service burden of US$3.5 billion, which consumed almost all available resources while the principal debt remained unchanged due to compounding interest and penalties.

Having observed the persistence of similar conditions in many African economies, he recommended three key approaches to overcoming such challenges – eliminating government waste, fighting corruption at all levels, and strategic resource mobilisation.

While acknowledging that waste could not be completely eliminated, Obasanjo noted that drastic reductions were achievable and necessary for fiscal recovery, urging the identification and elimination of wasteful expenditure to free up resources.

He cited a case where a Nigerian government borrowed US$10 million for a palm oil manufacturing project, and despite withdrawing the entire amount, no land was cleared and no project materialised – yet the country remained obligated to service the debt.

The former president indicated that an anti-corruption bill he proposed faced significant resistance, spending 18 months in the National Assembly. He said, “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.”

“Corruption and development don’t go together – don’t deceive yourself,” he said, urging current African leaders not to relent in the fight against corruption, as it is often resisted by the very beneficiaries of the system.

He stated that relentless effort proved successful, as Nigeria was eventually able to secure debt relief that saved the country US$3.5 billion annually in debt service payments – a development that took nearly six years but fundamentally transformed its fiscal position and freed up resources for critical development projects.

On mobilising both internal and external resources through sound policy frameworks and the creation of attractive investment conditions, he said, “Money to develop is out there, internally and externally.”

“It’s how to get that fund mobilised without corruption and waste,” Obasanjo explained, emphasising the importance of implementing solid policies that incentivise external investment while ensuring funds reach their intended purposes.

The 2025 Afreximbank Annual Meetings provided an appropriate platform for these insights, as the institution focuses on promoting intra-African trade and development financing across the continent.

Obasanjo’s emphasis on governance reforms, transparency, and strategic resource management resonates with Afreximbank’s mission to support sustainable economic development across Africa through responsible financial practices and anti-corruption measures.

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