Lagos: Mr Olusegun Obasanjo, a former President of Nigeria, has urged African leaders to implement a three-pillar strategy to address the continent's sustainable development challenges. He emphasized the importance of reducing government waste, fighting corruption, and enhancing resource mobilization as vital steps towards breaking free from recurring debt crises and reducing dependency on foreign institutions.
According to Ghana News Agency, Obasanjo shared these insights during a conversation among former African Heads of State at the 2025 African Export-Import Bank (Afreximbank) Annual Meetings in Nigeria. Reflecting on his leadership from 1999 to 2007, he recounted inheriting a nation burdened with an annual debt service of $3.5 billion, which consumed nearly all available resources due to compounding interest and penalties.
Obasanjo highlighted the persistence of similar challenges in many African economies and proposed three key strategies to address them: eliminating government waste, combating corruption at all levels, and mobilizing resources strategically. He stressed the importance of identifying and cutting wasteful expenditures to free up resources, citing an instance where a $10 million loan for a palm oil project in Nigeria yielded no results, yet the country remained obligated to service the debt.
The former President also recounted the resistance he faced when proposing anti-corruption legislation, which took 18 months to pass through the National Assembly. He urged current African leaders to continue combating corruption, emphasizing the incompatibility of corruption and development.
Obasanjo's efforts were instrumental in securing debt relief for Nigeria, saving the country $3.5 billion annually in debt service payments. This fiscal transformation allowed resources to be redirected towards critical development projects, demonstrating the effectiveness of relentless efforts in governance reforms.
On resource mobilization, Obasanjo advocated for sound policy frameworks and attractive investment conditions to harness both internal and external funds. He emphasized the need to mobilize funds without corruption and waste, underscoring the role of solid policies in incentivizing external investment and ensuring funds reach their intended purposes.
The 2025 Afreximbank Annual Meetings served as a fitting platform for these discussions, aligning with the institution's mission to promote intra-African trade and development financing. Mr Obasanjo's call for governance reforms, transparency, and strategic resource management aligns with Afreximbank's commitment to supporting sustainable economic development through responsible financial practices and anti-corruption measures.
