Obasanjo Blames Foreign Aid, Poor Leadership For Africa’s Stunted Growth

Former Nigerian President, Olusegun Obasanjo has sharply criticised Africa’s overreliance on foreign aid, weak leadership, and flawed democratic systems, attributing them to the continent’s persistent developmental challenges.

Speaking at the 32nd Annual General Meeting of the African Export-Import Bank (Afreximbank) in Abuja, Obasanjo said Africa’s most influential nations have failed to fulfill their potential as engines of continental progress.

Obasanjo singled out countries such as Nigeria, Egypt, Ethiopia, the Democratic Republic of Congo, and South Africa often dubbed Africa’s “lions” due to their size and resources as key players that have underperformed. “These countries should be leading Africa’s charge toward development, but with the exception of Egypt, they have either stagnated or regressed over the past 30 years.”

He blamed these failures on systemic inefficiencies, corruption, and poor economic decision making. In particular, he lamented Nigeria’s continued dependence on foreign aid and loans, despite its abundant natural and human resources. “One African country alone can raise $20 billion domestically,” Obasanjo asserted, “but we prefer to rush to China for loans, that is not how we will move forward”.

The former president said many African leaders lack the economic literacy necessary to navigate the complexities of the global economy. “If we truly understood how the world works, we would get it right not just at the national level but across communities, sub-regions and the continent as a whole”.

Obasanjo also criticised Africa’s adoption of Western liberal democracy, which he argued has not delivered the desired governance outcomes. According to him, the continent’s democratic systems have devolved into monetocracies, where mone! determines leadership and winner-takes-all politics disenfranchise opposition parties.

While stressing the need for continental unity, Obasanjo called for deeper collaboration among African nations to overcome cross border challenges and accelerate development. He noted that without collective progress from the continent’s biggest economies, smaller and less endowed nations would remain trapped in underdevelopment.

Highlighting agriculture as a strategic sector, Obasanjo urged African governments to emulate Ethiopia’s transformation into a wheat-exporting country. “If Ethiopia can do it, so can others,” He projected that Africa could save $40 billion annually by achieving food self-sufficiency, while also creating jobs and boosting economic resilience.

He further advocated for the use of local currencies in intra-African trade, arguing that the continent’s heavy dependence on the U.S. dollar undermines regional economic strength.

Calling for bold reforms, Obasanjo challenged African leaders to reflect deeply and take decisive action to transform the systems holding their countries back. “Until the lions begin to move, the rest of the continent will remain stuck in place,” he warned, emphasizing that leadership must be both visionary and courageous.

The Afreximbank meeting, attended by key stakeholders across Africa’s economic and political spheres, served as a platform for discussing strategies to enhance trade, investment, and sustainable growth across the continent.

Umbwanko Baba, Edited By Grace Namiji