The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has stressed the need for a thorough governance review of transparency and accountability in the oil sector.

Sanusi said this while presenting a speech at a forum organised by members of the Metropolitan Club in Lagos Tuesday.

Responding to questions on Nigeria’s external reserves, the CBN helmsman who apparently was making reference to a recent feud between the Federal Government and a former vice-president of the World Bank, Mrs. Oby Ezekwesili, said the country never had $67 billion reserves in its history.

He however said: “It is a debate I will like to avoid getting into deliberately because it is a debate where you have the truth on both sides.

“The highest level reserves had been was $62 billion under the late President Umaru Yar-Adua. There is also a certain truth to a basic proposition that if we save money when oil price is high, it is expected that when oil price crashes, we would de-save.

“Look at Germany, United States, United Kingdom, after the crisis, they all had huge deficits. So our deficit resulted from a reduction in reserves.

“Now having said that, no one can deny that between 2010 and 2011 when oil price was going up, we should have saved more than we actually did and we spent more than we ought to. As CBN governor I spent the whole of those two years talking about fiscal leakages.”

He noted that it was right for questions to be asked, especially in a period when payment for fuel subsidy which is paid from the Excess Crude Account (ECA), rose sharply from N300 billion to N2.1 trillion.

Despite the relative price stability recorded by the economy, Sanusi also stressed the need for diversification of the economy, saying that “all it takes is for oil price to go to $40 per barrel for us to go back to where we were.  We need to get the economy to a point where if oil price crashes to $10 per barrel, even if we feel the hurt, we would not cause a distortion.”

Sanusi however acknowledged that the Coordinating Minister for the Economy/Minister of Finance, Dr. Ngozi Okonjo-Iweala, has done a lot to address the fiscal leakages in the economy.

“I must say that there have been tremendous amount of progress made on the fiscal side. We have seen a lot of work being done to shut down some of these leakages and it is that work that is being done by the finance ministry since Ngozi took over that has actually helped in bringing up the reserves and stabilising the exchange rate,” he added.    

Speaking on the financial system, he pointed out that the sector contributes only four per cent of GDP.
He however argued that: “Fixing the financial system doesn’t fix much. How many people are employed in the financial system compared to the number of people employed and the impact you get from the agricultural sector, manufacturing?

“Financial services sector cannot be the engine for growth. I have had this debate over and over again about bank workers being sacked. The banking industry is not set up to create jobs within itself; it is set up to provide capital to people who create jobs. By the time your biggest employers become the banks and the government, you have a problem. The government and the banks are supposed to build the rest of the economy.”
Source:www.thisdaylive.com/articles/sanusi-nigeria-never-had-67bn-foreign-reserves/141349/

Well said sanusi tell the beer palour rumour peddlers.

Uselessz ga*y man!

israel007: Uselessz ga*y man!

Is that all dat cud come out of ya brain...very very unfortunate

Abeg wats d difference btw 62b dollars and 67b dollars.though he had raised valid points good job sir

67billion, 62 billion... potatoes, potahtoz. The difference, compared to the real issue, is negligible. And that REAL issue is this: where da fc!!k is the money??

Like him or not, i think Sanusi is the "most" honest person in this administration.

kay9: 67billion, 62 billion... potatoes, potahtoz. The difference, compared to the real issue, is negligible. And that REAL issue is this: where da fc!!k is the money??

I dont why some of u guys won't allow your heads to work? Which money are you till looking for??

According to Sanusi: the Reserves was never upp to $67bn, as alleged by Ezekweili (it was around $45bn according t Ngozi Iweala), and even increased to about $62bn in his 1st year. It began to however significantly decrease from 2008 cos of the 'Global Economic Crisis'. It unfortunately continued to decrease n 2010 and most parts of 2011 (under Yar'adua, and mostly GEJ) even when the Oil prices have picked up, to pay Deficits, fuel subsidy and 'defend the naira', etc. This ugly thread was however reversed from late 2011/early 2012, when the Reserves started to go again and has now grown from about $32-%33bn to almost $48bn today cos of tight fiscal rules by Okonjo-Iweala and even Sanusi himself.

This is the summary.

Of course it is possible (and maybe even likely) that some of the monies withdrawn from the Account at sme periods, just as 'Normal' Federation Money, were misappropriated and/or wasted. This does not imply that the whole mone ($67bn?) was 'squandered' at any time.

He however said: “It is a debate I will like to avoid getting into deliberately because it is a debate where you have the truth on both sides".

Interesting....

What's the bickering all about.

Dr Oby Ezekwesili said Nigerians need accountability which was no where to be seen in such a democratic society.

Instead of comprehensive and detailed balance sheet. The Government is trying to give piecemeal explanations.

What we Nigerians are calling for is more transparency and prudence in management of our scarce collective resources.

taharqa:


Which money are you till looking for??

According to Sanusi: the Reserves....began to however significantly decrease from 2008 cos of the 'Global Economic Crisis'....

^^ And you believe this tales by moonlight? Are u a learner? Financial reports given by word of mouth in Nigeria are worthless, irrespective of who's giving it. Individuals and civil right groups have demanded for detailed breakdown, released to the requesting party(s) in black and white, and endorsed by either the CBN gov'nor's office or the accountant general.

Sanusi knows what true accountability means, so he should stop all this aki-and-pawpaw stories.

Demdem: The bottom line is let there be a debate. Sanusi has strangely chicken out ( he didn't during subsidy debate ooo). Who is next to chicken out? Frog eye Ngozi ?

Don't allow hate destroy u...cos if U̶̲̥̅̊ countinue this way I doubt if u will ever be associated with success..what do U̶̲̥̅̊ mean by frog eyed ngozi..U̶̲̥̅̊ have never addressed issues on this forum only looking ƒσя who to call names...grow up man

Nairaland is filled with lying wonders and fantasy-makers, even though I don't share the opinion of SLS most times I am a big fan of his bluntness when it comes to sensitive issues! I knew Oby was lying all along because at no time was it recorded during Obj's time that he left $67 billion as being peddled around lately