The visiting statesman described Dr Magufuli as an exemplary leader in Africa, citing his efforts in spearheading the country's economic development and safeguarding national interests.
Dr Obasanjo made the remarks when he visited Dr Magufuli at the State House in Dar es Salaam.
Director of Presidential Communications Gerson Msigwa said in a statement last evening that the retired Nigerian leader appreciated Dr Magufuli as a good leader, with determination to bring positive changes to the country.
"He knows what he is doing especially on areas that yields positive results in the economy, we shouldn't forget that neo-colonialism is here and capitalists continue to exploit us, so any African leader who takes initiatives to block the exploiters should be hailed," said Dr Obasanjo, one of the prominent leaders in the continent.
Earlier, President Magufuli received diplomatic credentials from three Ambassadors assigned to represent their countries in Tanzania.
They are Cho Tae-ics from South Korea, Glad Chembe Munthali of Malawi and Antonio Augusto Martins Cesar from Brazil.
The new Korean envoy takes over Song Geum-young while Ms Munthali is replacing Ms Hawa Olda Ndilowe. The Brazilian diplomat comes for his predecessor Carlos Alfonso Iglesias Puente.
During their talks with Dr Magufuli, the new envoys pledged to strengthen relations in trade, investment, tourism and social services for the greater interest of the citizens of both countries.
President Magufuli congratulated Mr Cho Tae-ics for his appointment to Tanzania and asked him to deliver "My greetings and appreciations" to Korean President Moon Jae for the good relationship that the two countries enjoy.
Some of Dar's benefits from Seoul include construction of various infrastructures like the Kikwete bridge on the Malagarasi river in Kigoma region, Mloganzila teaching hospital and the Tanzanite bridge that will link Aga Khan area
FORMER Nigerian President Olusegun Obasanjo met President John Magufuli yesterday, commending him for his fight against corruption and improved delivery of social services to wananchi.