Claim I: Did Obasanjo service all foreign debts during his administration?
CONTEXT: On May 13, 2023, a Twitter user claimed that the former president of Nigeria, Olusegun Obasanjo, serviced foreign debts, paid off a 2.5 trillion-naira pension through the Pension Reform Act, built ten power plants, and licensed the use of Global System Mobile Communication (GSM).
As of the time of this report, the tweet had garnered 692,000 views, 4,243 likes, and 1,622 retweets.
VERIFICATION:
When Olusegun Obasanjo, the former president, took office in 1999, the country had a debt of $28 billion, which he significantly reduced to $2.11 billion.
Numerous reports, however, claim that the reduction was brought about by the London and Paris Club’s significant write-off of foreign debt, which decreased both local and foreign debt by 31.8 percent.
The Center for Global Development (CGD) also stated in 2004 that it helped Nigeria obtain a relief package from her Paris Club creditors.
The CGD began working on Nigerian debt issues in order to provide analytical support and persuade creditors to agree to an appropriate debt relief package, and in October 2005, Nigeria and the Paris Club announced a final debt relief agreement worth $18 billion.
Verdict: Misleading.
From this verifiable report, we can confirm that although the Obasanjo-led administration cleared a large amount of the country’s debt, it left behind $2.11 billion in foreign debt.
Claim II: Did Obasanjo build ten new power plants?
Verification:
According to the Niger Delta Power Holding Company (NDPHC), Olusegun Obasanjo established the National Integrated Power Plant and the NDPHC to address power energy in the country.
Additionally, investigations have revealed that Nigeria has ten power plants under its Nigerian National Integrated Power Project (NIPP), including the Sapele power plant, Olorunsogo power plant, Geregu II power plant, Gbarain power plant, Ihovbor power plant, Alaoji power plant, Omoku power plant, Egbema power plant, Omotosho power plant, and Calabar power plant.
Verdict: True.
The NIPP was established in 2004 by the Obasanjo-led administration which operates and upgrades the above power plants,
Claim III: Was the N2.5 trillion in pensions paid through the implementation of the Pension Reform Act?
Verification:
The National Pension Commission (PenCom) was established by the Pension Reform Act of 2004 as the body responsible for regulating, supervising, and ensuring the efficient administration of pension matters in Nigeria. The Commission’s functions include regulating and supervising the Scheme established by the Act.
The National Pension Commission credits Obasanjo with enacting the Pension Reform Act in 2004, and a report on their website shows that the commission experienced a net growth of N413.90 billion as its Net Asset Value (NAV) increased from N10.30 trillion on September 30, 2022, to N10.72 trillion on December 31, 2022.
Verdict: True
The Pension Reform Act 2004, initiated by former President Obasanjo, was able to generate N12.4 trillion, which exceeded the commission’s N2.6 trillion deficit prior to the reform.
CLAIM IV: Obasanjo licensed the use of GSM
It is nearly impossible to discuss the advent of GSM in Nigeria without mentioning Obasanjo.
GSM was introduced and licensed for use in the country by the Obasanjo administration in 2001.
Verdict: TRUE
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