Former President Olusegun Obasanjo has criticized African leaders for their poor understanding of economic principles, saying this shortcoming continues to drag the continent away from meaningful development. Speaking at the 32nd Afreximbank Annual Meetings in Abuja on Thursday, Obasanjo pointed to bad governance, wasteful spending, and the blind imitation of Western systems as key reasons Africa remains economically stagnant.

During a panel session titled “African Renaissance in an Era of Turbulence: Are the Lions Still on the Move?”, moderated by CNBC Africa’s Fifi Peters, Obasanjo questioned the competence of many of the continent’s political leaders.

How many of our leaders even understand basic economics to run their countries effectively? he asked. Look at how we borrow excessively and waste money. Waste and corruption have become companions of underdevelopment, and sadly, many of our leaders are neck-deep in them.

Africa’s “Lions” Not Living Up to Potential

Obasanjo identified Nigeria, South Africa, Egypt, Ethiopia, and the Democratic Republic of Congo as Africa’s economic powerhouses, or “lions,” with the potential to drive continental progress. He also named Kenya, Senegal, and Morocco as promising players but said most of these nations are failing to perform as expected.

The lions are there, but they are not moving as they should, Obasanjo said. These countries must step up before Africa as a whole can truly progress.

He attributed the lack of momentum to weak political institutions and poor governance structures.

You cannot separate economics from politics, because politics shapes economic decisions, he added.

Imported Democracy Doesn’t Fit African Realities

Obasanjo criticized the wholesale adoption of Western-style liberal democracy across Africa, saying it often clashes with local governance traditions.

Western liberal democracy, which we inherited from colonial rulers, must be re-examined and adapted, he said. In most African languages, the word ‘opposition’ means ‘enemy’. How then do we expect our political systems to work when disagreement is treated as hostility?

He described Africa’s current democratic systems as monitocracies, not true democracies.

Our democracy is monitocracy. It’s all about money. You have to buy your way in, and once you’re in, you keep the treasury to yourself, Obasanjo said.

Time to Move Beyond Aid Dependency

Obasanjo strongly opposed the continent’s reliance on foreign aid, arguing that African countries are too resource-rich to remain dependent on external support.

We have relied on aid for too long. Is that the future we want for Africa? I don’t believe so, he declared.

He criticized African leaders for flocking to countries like China and Japan for relatively small sums of money, when proper governance could generate even more internally.

We run to China for $20 billion, but an African country could easily generate that kind of money with the right policies, he said.

Local Currencies Can Drive Intra-African Trade

Praising Afreximbank’s push for regional trade in local currencies, Obasanjo questioned why African countries still rely on dollars and euros for cross-border transactions.

Why do I need euros to buy milk from Uganda? The farmer doesn’t want euros. He wants his local currency. I have Naira. Why can’t I pay with that? he asked.

He said eliminating foreign currency dependency in regional trade would simplify transactions and boost local economies.

Stronger Countries Must Lead Reforms

Obasanjo concluded by calling for deeper regional collaboration and empowering capable countries to lead reforms across Africa. He urged African nations to stop copying foreign systems and instead develop policies tailored to their unique contexts.

Africa needs reforms crafted by Africans, for Africans, he said. We can’t keep looking outside for solutions. We must build from within.

He stressed that Africa’s future depends on good leadership, institutional reform, and the political will to move beyond outdated systems and practices.

If we want prosperity, we must take responsibility and make the hard decisions ourselves, Obasanjo said. Only then can we turn Africa’s potential into reality.