Former President Olusegun Obasanjo has criticised President Bola Tinubu over his position on borrowing, declaring that debt is worse than leprosy because it destroys generations.

Obasanjo spoke at a symposium in Abeokuta, Ogun State, on leveraging artificial intelligence to solve grassroots problems and accelerate national development.

Tinubu had said in April that borrowing should not be viewed negatively, insisting that the government would borrow when necessary, provided it had the capacity to repay the loans.

However, Obasanjo disagreed, describing the position as absolute nonsense.

The former president also questioned Nigeria’s economic performance, recalling that when he established his farm 47 years ago, the naira exchanged at ₦1 to $1.85.

He challenged the country’s leaders to explain the depreciation of the naira to about ₦1,500 to the dollar, asking what Nigeria had achieved over the decades.

Meanwhile, the guest speaker, historian and public policy scholar, Umar Ardo, warned that artificial intelligence could deepen Africa’s dependence on foreign powers if the continent failed to control its technology and digital infrastructure.

Ardo said that without investments in chip fabrication, data centres, African-owned datasets, and continental cooperation, artificial intelligence could become another instrument for managing Africa rather than empowering the continent to determine its own future.

Amid the criticism, President Tinubu on Thursday defended his administration’s plan to secure additional foreign loans, arguing that Nigeria needed long-term investment in infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.

The President said the proposed loans would finance road construction, improvements in electricity supply, port upgrades, and other projects expected to create jobs, expand businesses, and provide opportunities for future generations.

In a statement titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy”, Tinubu said the focus should be on what borrowed funds would achieve rather than the amount the government intended to borrow.

“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.

He listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements, and upgrades to major commercial ports in Lagos among the projects the government planned to fund.

According to him, the projects, alongside investments in healthcare, education, and vocational training, would connect economic regions, reduce the cost of transporting goods, support agriculture and industry, and attract private investment.

Tinubu said the Lagos-Calabar Coastal Highway alone could reduce transport costs along its route by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism, and industrial activities.

He projected that the highway would generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, building materials, and related services.

The President’s statement came as the Nigeria Labour Congress (NLC) questioned the Federal Government’s request to the National Assembly for approval to borrow $20.5bn and €1.45bn, despite claims that government revenue had increased following the removal of the petrol subsidy.