The Federal Ministry of Finance has debunked claims that President Goodluck Jonathan has squandered the Nigeria’s reserves, insisting that it was used appropriately in the course of normal transactions required for the development of the Nigerian economy.

In a statement released to clarify the facts of the recent history and status of Nigeria’s Excess Crude Account and foreign reserves, the Ministry said “it is important to restate the true position in the interest of the Nigerian public as well as local and international investors.
“It is absolutely not true that the Administration of President Goodluck Jonathan has squandered the nation’s reserves”, it said, maintaining that “at the end of May 2007, Nigeria’s gross reserves stood at $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. These figures can be independently verified from the CBN’s records”, insisting that “the figure of $67 billion cited in some recent commentary is therefore factually incorrect”.
The statement further added that “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 $43.13 billion at that time, peaking at $62 billion 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.
“The Excess Crude savings, which it should be noted is a component of the reserves, was largely used to cushion the economy at the height of the global financial crisis in 2008-2009. As a result, Nigeria was one of the few countries in the world that did not seek assistance from international financial institutions at that time.
“The fiscal stimulus used to shore up the economy during that period was shared by all 3-tiers of government. Similarly, savings in the ECA were also used to pay for fuel subsidies for the entire nation and that sharing continued after the crisis ended. Starting in 2012, such payments have been published each time they are made”, it said.
The Federal Ministry of Finance also explained that the savings in the ECA would 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” adding that they “took the Federal Government to court on this matter, and the case is still pending at the Supreme Court.
“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 of Nigerians and important infrastructure investments are being supported.
“It is also a matter of public knowledge that the Fund would have generated more savings and investments if the same sort of opposition that blocked savings in the ECA had also not been at work.
“Furthermore, by common agreement between the FGN and State Governors, in 2009, an amount of about $5.5 billion was drawn from the ECA and used for investment in Independent power projects. Today, various State governments are shareholders in the projects and hold share certificates confirming their stake in the projects” the said.
On the use of reserves, the Ministry maintained that “it is not correct to say that the nation’s external reserves were dipped into or misapplied by the Administration. Anyone familiar with foreign reserves management will be aware that the Federal Government cannot dip its hands into the external reserves.
“Like in other countries, the management of external reserves is one of the statutory mandates of the Central Bank of Nigeria (CBN). Section 2 sub-section (c) of the CBN Act (2007) states that the Bank shall maintain external reserves to safeguard the international value of the legal tender – in other words, to defend the value of the Naira. No President since the democratic dispensation has contravened this Act.
“The reserves are also used to settle both public and private sector foreign currency obligations, including the importation of goods such as equipment for power sector. Whenever an Agency of Government or a private individual/company needs to make a payment in foreign currency (e.g. payment of goods and services, settlement of external debt, etc) it must provide the naira equivalent to the CBN in exchange for the required foreign currency.
“From the above, it is clear that Nigeria’s reserves during the period were not squandered but used appropriately in the course of normal transactions required for the development of the Nigerian economy”.
A former Nigerian President, Mr Olusegun Obasanjo, had blamed the present economic woes facing the nation on the depletion of the Excess Crude Account and the external reserves.
He said that his administration left $25 billion in the excess crude accounts in 2007 which was shored up to about $35 billion by the Yar’Adua’s administration, while he left $45 billion in external reserve.
“Our economy should not have been this bad. When I was leaving office about eight years ago, I left a very huge reserve after we had paid all our debts. Almost $25billion we kept in what they called excess crude. The excess from the budget we were saving as reserve for the rainy days. When we left in May 2007, the reserve was said to have been raised to $35billion,” he said.
“But today, that reserve has been depleted! Today, that reserve has been depleted. The reserve we left when we finished paying all our debts, our debts that was about 40billion dollars, that is including debt forgiveness, the remaining debt was not more than $3billion. Our reserve after we had paid off this debt was about $45billion. As I said, they continued till the end of 2007, I heard that the reserve increased to almost $67billion before the end of the year. Our reserve now, learnt is left with around only $30billion.
“That is why the Naira has been falling against the dollar. What would now happen, I learnt if you want to buy a dollar now, it’s about 192 Naira or 195 Naira. What it means is this, what you have been buying at N150 to a dollar, now you need N192 or N195 to buy it. That is the real situation. Is there any remedy? There is, but it does not come overnight because it means we have to give up all the bad things we have been doing,”Mr Obasanjo said.
These funds, he said, had been mismanaged by the present administration.


Source: Scannews

Yoruba adage says two ppl cannt (padanu) lie if person wey den dey tell lie no sabi sey na lie,person wey dey lie sabi sey na lie.jah bless us,peace out

Ministry of Finance, are they reliable? Very lame defence this time around.

Gospel according to saTANist finance Minister.Hope dis woman won't find her way to kirikiri soon? Waiting patiently for our incoming President BUHARI.

Yorubas like to be told a lie about those they envy

....so the question is, who squandered our oyel moni
She said the money was used for normal developmental transaction. Where is the development All we see are decay infrastructures and abandoned projects every where.

[b]Why is NOI throwing away her professional reputation built over the years from Havard to The World Bank?
Why tell half truths to defend corrupt and incompetent politicians?

Take a look for yourselves:

OBJ (2007 Ave.)
Reserves: $53 billion
National Debt: $17Billion (12% of GDP)
Oil Price: $64/barrel

Yar'adua (2009 Ave.)
Reserves: $42 billion
National Debt: $21Billion (11.6% of GDP)
Oil Price: $53/barrel

GEJ (2014 Ave.)
Reserves: $38 Billion
National Debt: $49Billion (18.5% of GDP)
Oil Price: $89/barrel

Oil Price Chart shown at the bottom of this post:

Wih the best oil price regime sustained over a long period, GEJ's govt cannot claim to have performed better that Yar'adua or OBJ. Nigeria may never get the sustained high oil price oppprtunity we got under GEJ.
But under GEJ, no improvement in Power, worsening Security, No Refineries, Oil bunkering of 400,000 barrels per day ($10 Billion per annum revenue loss).

Again, who is fooling who? GEJ has the worst stewardship of the past 3 PDP Presidents.[/b]

References-
Reserves: http://www.thisdaylive.com/articles/2007-2012-movement-in-foreign-reserves-account/138991/
http://dailyindependentnig.com/2014/06/external-reserves-shed-11-45b-one-year/

World Debts: http://www.economist.com/content/global_debt_clock?page=8

Oil Price: http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp
Chart- http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=10y

GMB 2015. Anticorruption is in our DNA

Godfullsam:
....so the question is, who squandered our oyel moni
She said the money was used for normal developmental transaction. Where is the development All we see are decay infrastructures and abandoned projects every where.

Get this into your greasy greedy lazy jealous head: there is nothing like "our oyel money"

engrfcuksmtin:
Ministry of Finance, are they reliable? Very lame defence this time around.

eleko1:
Gospel according to saTANist finance Minister.Hope dis woman won't find her way to kirikiri soon? Waiting patiently for our incoming President BUHARI.

If OBJ had used the instrument of True Federalism to diversify the economy, this trash he is spewing out won't arise.


My only beef with GEJ is his failure to address the national assembly and governors on the need to adopt True Federalism

In the days of Awo and Co this nonsense never arose because our fiscal federalism made our regions developed their resources leading to economic diversification

I would had believed this news but the source got me thinking otherwise

Got it. He didn't squander it but he mismanaged it since stealing is not corruption so squander is not mismanagement.

He didn't ok show me the money! oh! the ponmo mouth ngozi iweala is padded with the money, I get it now.

[quote author=PvtParts post=29592976]

Get this into your greasy greedy lazy jealous head: there is nothing like "our oyel money"


this is how we call it here in Nigeria . Perhaps you are living in jupiter. Does that get into ur shallow brain


I know why you are so upset this early morning, diariz no oyel in your region

Godfullsam:

Start weaning yourself off oil revenue that does not belong to you

lf as way back as 2009, $5.5b was drawn out from the ECA for independent power projects and we are now in 2015 (6 years after), can anyone boldly say he or she can feel the impact and they no longer have much need for their generators?

Neither BUHARI nor GEJ is the change we need

WhiteTechnology:



If OBJ had used the instrument of True Federalism to diversify the economy, this trash he is spewing out won't arise.


My only beef with GEJ is his failure to address the national assembly and governors on the need to adopt True Federalism

In the days of Awo and Co this nonsense never arose because our fiscal federalism made our regions developed their resources leading to economic diversification

if the true federalism base on the instrument of diversifying the economy was that easy, GEJ should have done it.

Only a failure blame his grandfather for the woos befalling him.

eleko1:
Gospel according to saTANist finance Minister.Hope dis woman won't find her way to kirikiri soon? Waiting patiently for our incoming President BUHARI.

guy, u will have to wait forever.

1) If NOI says they defended the Naira how come its 192 to a dollar
2) $5billion spent on power no improvement

3)Governors insist on sharing the money in ECA but the matter is pending in court then the money should still be in the reserve.

Madam NOI, a good name is better that sliver and gold.
Tell us the truth even when it hurts and don't pacify us with lies. The truth could be harsh atimes but integrity will tell you to stand by it.

Anyway, I have to believe what you say.

www.nairaland.com/attachments/2006381_RetardeenSamboribobo_jpgdb01f2057a8144575c025b43c4019022

Am yet to see rambunctious & GEJ Sycophantic SaTANs accuse Vice President Namadi Samboribobo of disrespecting Christianity by not removing his cap in a Christian worship in the pix below, yet they saw Buhari and questioning his ability to govern, but missed this? Like missing the speck in your own eyes, but seeing others...

Hypocrisy at work. One rule for GEJ, another for GMB.

It's inside the Church, unlike the Open Air Interdenominational and Inter-faith Service under reference during the Year 2015 Thanksgiving Service organised by the Lagos State Government.

King Nebu's Disciples, what ya say??

Dosinspector:
Neither BUHARI nor GEJ is the change we need

Thank you.
You are by far one of the most sensible persons in politics section.

9ja!!!If na mi dem accuse of squandering Wetin una expect make my wife Rose talk na?So am nt surprised even as we stil dey for season of surprise!!!

Tolexander:
if the true federalism base on the instrument of diversifying the economy was that easy, GEJ should have done it.

Only a failure blame his grandfather for the woos befalling him.

The far North is opposing him

Unfortunately

He has not gone to the national assembly to make a Clear point on true federalism

WhiteTechnology:


The far North is opposing him

Unfortunately

He has not gone to the national assembly to make a Clear point on true federalism

far north opposing who? Jonathan?

And the far south didn't oppose Obasanjo?

Tolexander:
far north opposing who? Jonathan?

And the far south didn't oppose Obasanjo?

Opposed OBJ in what way

Pls explain

Maybe I am missing something

WhiteTechnology:


Opposed OBJ in what way

Pls explain

Maybe I am missing something

you could have explained why the far north is opposing GEJ since you introduced the issue into the discussion.

Tolexander:
you could have explained why the far north is opposing GEJ since you introduced the issue into the discussion.

True federalism means no more easy oil wealth for the far North

It means they will work and think harder to make wealth

If they do it right, they will be like Japan

Unfortunately

They lack self confidence in their God given resources

LRNZH:
Why is NOI throwing away her professional reputation built over the years from Havard to The World Bank?
Why tell half truths to defend corrupt and incompetent politicians?

Take a look for yourselves:

OBJ (2007 Ave.)
Reserves: $53 billion
National Debt: $17Billion (12% of GDP)
Oil Price: $64/barrel

Yar'adua (2009 Ave.)
Reserves: $42 billion
National Debt: $21Billion (11.6% of GDP)
Oil Price: $53/barrel

GEJ (2014 Ave.)
Reserves: $38 Billion
National Debt: $49Billion (18.5% of GDP)
Oil Price: $89/barrel

Oil Price Chart shown at the bottom of this post:

Wih the best oil price regime sustained over a long period, GEJ's govt cannot claim to have performed better that Yar'adua or OBJ. Nigeria may never get the sustained high oil price oppprtunity we got under GEJ.
But under GEJ, no improvement in Power, worsening Security, No Refineries, Oil bunkering of 400,000 barrels per day ($10 Billion per annum revenue loss).

Again, who is fooling who? GEJ has the worst stewardship of the past 3 PDP Presidents.

References-
Reserves: http://www.thisdaylive.com/articles/2007-2012-movement-in-foreign-reserves-account/138991/
http://dailyindependentnig.com/2014/06/external-reserves-shed-11-45b-one-year/

World Debts: http://www.economist.com/content/global_debt_clock?page=8

Oil Price: http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp
Chart- http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=10y

Another paper economist like the Chairman, House Committee on Finance, Abdulmumin Jibrin.

Dr Okonjo Iweala quoted a primary source that is verifiable and can be confirmed by your trusted companion Malam Sanusi Lamido

Why waste your time when you can simply go to court?

Do you know that we have credible and intelligent lawmakers representing Nigerians in the legislative organ of government with an oversight power and functions?

Do you know they have at every point raised these infantile projections you made above for her explanations?

Have you forgotten so soon the (N115m worth) 50 questions posed by House of Representatives to Finance minister made possible by a machinery.

Was there any question not answered satisfactory? They couldn't even understand some of the questions let alone cross examine her.

I will advise you to shelve your habitual absolute antagonism that blinds logical and rational reasoning.

Dr Ngozi Okonjo does it best for Nigeria. So transparent while establishing institutions to check corruption - Fact

Its just simple arithmetic. The should have been an increase in foreign reserve and more money in the excess crude oil account no matter the project been undergone by the president. The oil benchmark should have catered for every expenditure within the budget. That oils is the major source of income doesn't mean the federal government wasn't making money from other sector of the economy e.g entertainment, which was one of the sector NOI redecimalized (abi wetin them talk say them do that time) that put the economy at the largest economy in africa. i was during this administration that we have the all-time-high Oil price, but the administration as nothing to show for it.
Even most of the project are just paper projects and MOUs. Just yesterday a friend was showing me that jonathan said he did 10,000 or there about CCTV within lagos to secure lives and properties and was like is it not this same Lagos I'm staying? So so many lies about project that didn't even kickoff. I know there no amount of word that can typed that can sway the present crop of propagandist because more of the campaign point are based on lies and paper projects to deceive the small minded ones.










Enrich Ur MIND

Cheap Talk form The Dnnted Ministry Lieing Balantly to save face when everyone know the truth on Ground..

Nigerians Let's Vote out this Incompetent Federal Government to Usher in the real Change we all has Being yearning For..

Vote GMB/PYO.....!!!

For a Better Economy...

PvtParts:


Get this into your greasy greedy lazy jealous head: there is nothing like "our oyel money"

Okay where is the oil money showing in the Niger delta if ntnfor the efforts of Amaechi and Akpabio what else is there to show from the FG?
Young people are so poor, are still stealing crude oil in Ekulama, Etchie, Andoni and many other places. This argument that Jonathan is mandated to waste the resources of his people and impoverish them is why I think that region is under a curse.

At least Yoruba people opposed Obasanjo robustly during his time, the main opposition to his regime came from the west and Atiku's secret manoeuvrings in PDP but this new one about following a clueless leader to hell is not ordinary eye.