The Federal Government, yesterday, responded to the allegations made
by former President Olusegun Obasanjo against the administration of
President Goodluck Jonathan, including an alleged squandering of the
nation’s $55 billion foreign reserve.
The Minister of Finance, Dr. Ngozi Okonjo-Iweala explained that the former President got it wrong, stating that former President Obasanjo left a gross reserve of $43.13 billion,
The Minister of Finance, Dr. Ngozi Okonjo-Iweala explained that the former President got it wrong, stating that former President Obasanjo left a gross reserve of $43.13 billion,
comprising the CBN’s external reserves of $31.5 billion, $9.43 billion
in the Excess Crude Account, and $2.18 billion in Federal Government’s
savings in May 2007.
It stated that the reserve peaked at $62 billion in September 2008 under
Yar’Adua when crude prices rose to $147 per barrel before falling to
$31.7 billion in September 2011 as the Central Bank of Nigeria had to
use much of it to defend the Naira, following the 2008-2009 global
financial meltdown.
The ministry maintained that President Jonathan never in any way
squandered the nation’s reserves, but appropriately utilised it in the
course of normal transactions required for the development of the
Nigerian economy.
The statement read in part: “It is absolutely not true that the
administration of President Goodluck Jonathan squandered the nation’s
reserves. The facts are clear and indisputable. At the end of May 2007,
Nigeria’s gross reserves stood at $43.13 billion, comprising the CBN’s
external reserves of $31.5billion, $9.43billion in the Excess Crude
Account, and $2.18 billion in Federal Government’s savings.
“These figures can be independently verified from the CBN’s records.
“Secondly, it is a misconception to think that reserves are immutable or
cast in stone. The reality is that since May 2007, the reserves have
fluctuated in line with developments in the international oil market,
rising from $43.13billion at that time, peaking at $62billion in
September 2008 during the Yar’adua/Jonathan administration, when oil
prices reached a peak of $147 per barrel, and falling subsequently to a
low of $31.7 billion in September 2011.
This fall in reserves was largely a result of the vicissitudes of the
global economy and oil market which caused the CBN to intervene, using
some of the reserves, to defend the value of the naira.
“Thirdly, the excess crude savings which is a component of the reserves,
was largely used to cushion the economy at the height of the global
financial crisis in 2008-2009.
“Fourthly, it is true the savings in the ECA would now have been higher
but for the fact that a number of governors, against strong professional
advice, actively kicked against continuous building up of the ECA and,
indeed, pushed for its sharing. It is on record that states even took
the Federal Government to court on this matter,.
“In the fifth place, it is also worth noting that the Jonathan
administration built the first ever Sovereign Wealth Fund for the nation
in which savings are being made for future generations and
infrastructure investments.”
$55bn: ‘You got it wrong,’ FG replies Obasanjo
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Oleh
healthandwealth
