Museveni was Tuesday night speaking at a State banquet he hosted at the Kampala Sheraton Hotel in honour of Obasanjo, who yesterday began a 2-day state visit to Uganda. He was chief guest at the 40th independence anniversary celebrations.
Museveni hailed his guest for being a great African freedom fighter and for being a popularly elected president.
He also hailed Obasanjo for his contribution in ending the super powersâ€™ proxy war in Angola that started in 1974 and for his role in negotiations on the withdrawal of foreign troops.
Museveni said Obasanjo returned Nigeria to civilian rule when he organised elections won by Mr Shehu Shagari.
He said Obasanjo in his retirement, formed the African Leadership Forum that articulated African development and cooperation issues.
Museveni said Uganda was looking forward to doing business with Nigeria, especially after the establishment of air links between Entebbe and Lagos.
On his part, Obasanjo congratulated Museveni and Ugandans on the 40th anniversary of independence.
He also hailed the leadership in Uganda, which has become a stabilising force in the sub region as manifested in the re-establishment of the East African Community, the pacification initiatives in the Great Lakes region and the new momentum of stability generated by the Uganda-Sudan peace process.
Obasanjo hailed on surviving gallows