Olusegun Obasanjo, the former president of Nigeria, has blamed financial incompetence and corruption for Africa’s mounting debt load.
He gave examples of financial mismanagement, including loans obtained for unfulfilled projects that were nevertheless paid back.
Obasanjo stated that the continent’s financial problems are largely the result of such careless borrowing habits. He cited a particular instance in Nigeria where a loan was taken out for a carpet business that never materialised but was fully repaid, highlighting the negative effects of corruption on economic growth.
Obasanjo addressed the growing debt load in Africa and denounced the carelessness and corruption that underlie many loans.
His words: “Some of the debts by African countries were due to recklessness and outright corruption.”
Obasanjo’s comments showed how important it is for public finances to be managed with accountability and openness in order to stop future economic collapse in African countries.
