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 would be pivotal in breaking away from the shackles of recurrent debt crisis and continuous reliance on foreign institutions for the development of its continent and lift its people from poverty.

Mr Obasanjo said this in a conversation among some previous Heads of States of Africa at the 2025 African Export-Import Bank (Afreximbank) Annual Meetings in Nigeria on Friday, June 27, as he reflected on his from 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 that consumed almost all available resources while the principal debt remained unchanged due to compounding interest and penalties.

Having observed the prevalence of the situation still in many African economies, he recommended three key approaches to overcome such challenge – 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 identifying and cutting 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, but the country remained obligated to service the debt.

The former President indicated that an anti-corruption legislation he proposed faced significant resistance, spending 18 months in the National Assembly, saying, “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 on the fight against corruption as it is often fought by beneficiaries of the system.

He stated that a relentless effort proved successful, as Nigeria was able to achieve a 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 creating 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, echoing 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.

Mr 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.