Obasanjo Highlights Rising Debt Despite Leaving $70 Billion in Nigeria’s Reserves

Former President Olusegun Obasanjo points out Nigeria’s increasing debt levels, despite leaving $70 billion in reserves at the end of his administration. Discover his insights on the country’s current financial challenges.

Former Nigerian President Olusegun Obasanjo has expressed concern over the size of the country’s debt, years after he stepped down from office in 2007.

Obasanjo recounted that he departed from the leadership of the nation with approximately $70 billion in total, comprising a reserve fund of $45 billion and an additional $25 billion held in a designated “excess crude” account.

In an exclusive interview with Kayode Akintemi of News Central Television, the former President spoke on Thursday.

Obasanjo expressed concern about the country’s poor leadership quality, noting that his administration inherited a debt of nearly $36 billion and managed to reduce it to approximately $3.5 to $3.6 billion by the time he left office in 2007.

READ ALSO: Obasanjo Criticizes Nigerian President, Claims He Entered Office Without a Plan

He said, “When I arrived in 1999, the reserve was at $3.7 billion. As I’ve mentioned before, we were spending $3.5 billion on debt servicing—that’s what our financial situation looked like.”

When we left eight years later, after securing debt relief, the initial debt burden of nearly $36 billion had been significantly reduced. By the time I departed, this amount was decreased to approximately $3.5 to $3.6 billion from around or over $36 billion.

Simultaneously, the reserve increased from $3.7 billion when I first arrived to $45 billion. During this period, we also accumulated what was referred to as “Excess crude”—this represents the surplus generated beyond our budgeted projections and actual crude sales figures due to conservative budgeting practices. The value of this excess amounted to approximately $25 billion. When combined with the reserves, it totaled around $70 billion overall.

“The key point is that I departed in 2007. From then until 2024, all those funds have been depleted—every last bit of it. Moreover, every cent earned during this period has also vanished. As a result, we are now more indebted than we were when we assumed office in 1999.”