• Advocates regional trade integration as a way forward
By Obinna Uballa
Former two-term Nigerian president and erstwhile military Head of State, Chief Olusegun Obasanjo, has called on African nations to reduce dependence on global financial institutions such as the International Monetary Fund (IMF) and World Bank, insisting that they were not created to serve Africa’s interests.
Speaking during an interview at the ongoing Intra-Africa Trade Fair (IATF) in Algiers on Monday, Obasanjo warned African leaders against over-reliance on these institutions, urging them instead to strengthen regional integration and intra-African trade.
“The World Bank is not for us, the IMF is not for us. When we understand that these institutions are not for us, we will be better informed about how we relate with them,” he said.
The former president expressed concern over Nigeria’s currency depreciation, describing it as abnormal and symptomatic of a flawed economic system.
“When I left office as head of state in 1978, the naira was almost $2. Today, $1 is N1,600. What has Nigeria done to devalue the currency to that extent? Something must be wrong. It is so bad that our money is not even worth the paper it is printed on,” Obasanjo lamented.
He stressed that while internal mismanagement played a role, the current situation underscores the urgency for Africa to adopt alternatives that reduce dependence on foreign currencies like the dollar.
Obasanjo praised the African Export-Import Bank (Afreximbank) for championing cross-border trade settlement in local currencies, saying such initiatives would strengthen economic sovereignty.
“If we are transacting business between Algeria and Uganda, the seller in Uganda needs shillings, not dollars. If you can give him shillings, why should you be looking for dollars? Why should the dollar make my own currency worthless?” he queried.
He urged African governments to fully embrace the African Continental Free Trade Area (AfCFTA) and similar initiatives that promote trade within the continent.
“What should we do that will make us no longer dependent on these institutions that are not made for us is to support AfCFTA and the Intra-Africa Trade Fair. These are the things that will take us away from what was not established for us,” Obasanjo added.
Obadanjo’s remarks are coming amid growing debate on Africa’s economic independence and the push for alternatives to Western-controlled financial systems.
