We know that some persons, because of their deep seated HATRED for GEJ and desperation to see their principal or party in Aso Rock, are willing to dine with the Devil if only that will discredit the incumbent.

However in the midst of our biases and sentiments, it is also pertinent to seek the TRUTH in every matter. The Holy Bible tells us "and you shall know the TRUTH and the TRUTH shall set you free". The TRUTH saves and the TRUTH endures. On the other hand, LIES, however beautiful, is not only temporary but also DESTROYS.

Therefore, it is pertinent for us to know, who amongst Oby Ezekwesili, Labaran Maku and Doyin Okupe told the TRUTH in the ongoing controversy over how much reserve the Yar Adua/GEJ govt inherited in May 2007.

It is very unfortunate that while this controversy raged, the media has been reporting all sides of the story as usual but the media does not only exist to report allegations and counter allegations but also to accurately INFORM and ENLIGHTEN the masses. If Mr Labaran Maku and Oby Ezekwesili are issueing contradictory statements on the same issue, what is the media saying about that same issue, as an unbiased party? One would have expected the media to dig deep and provide to the Nigerian people an unbiased account on this issue.

However since the media and many Nigerians are too lazy to dig deep and find the TRUTH on this issue, I decided to take up the challenge.

Oby Ezekwesili told Nigerians that "the governments of Presidents Musa Yar’adua and Goodluck Jonathan have squandered $67 billion in reserves (including $45 billion in external reserves and $22 billion inthe Excess Crude Account) left by the Obasanjo Administration at theend of May 2007"

Labaran Maku released a contrary statement claiming 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 the Federal Government’s savings. These figures can be independently verified from the CBN’s records"

Doyin Okupe also claimed that "as at May 2007, when former President Obasanjo handed over power to late President Umaru Musa Yar’Adua, the excess crude account had $43 billion"

Who then is telling the TRUTH?

I dug deep and found a certain report written in August 2007, that can help us, despite our individual biases and sentiments, make up our mind on the TRUTH. Part of the report is reproduced below:

"Interestingly recently at his screening for ministerial appointment on the floor of the National Assembly, the new Minister of Finance, Dr. Shamsudeen Usman who was then a nominee and deputy Governor of the Central Bank was alleged by a section of the media to have disclosed that only $8.8 billion (N1.1 trillion) of the reported $43.6 billion foreign exchange reserve is available to the three tiers of government.
In his comment, which was misconstrued, Dr. Usman actually said on the foreign reserve: “There is so much confusion about this. People say we have $43 billion in cash and people think that the same amount of $43.6 billion should be spent. If you break down this $43 billion, about $31 billion or 71 per cent ofthis amount belongs to the CBN…So; all the three tiers of government have shared this $31 billion and spent the money. The $31 billion of this money is not available for spending. $2.3 billionof that also belongs to the Federal Government. The only amount available in the Federation Account for distribution, which is so-called excess crude, as at this time (July 2007), is about $9.9 billion? And there are some transactions that are in the pipeline, of about a $1 billion…So net; you are talking of about $8.8 billion. That is the amount to be distributed. If you translate that amount into Naira, that is just about N1.1 trillion.....
But following the public misconception and confusion over the statement at the NationalAssembly, the CBN later clarified the position stating that the external reserve as at last month stood at $43.6bn and not the $8.8bn reported by some sectionsof the media. The Head, CorporateAffairs, Central Bank of Nigeria, Mr.Festus Odoko, said the fact that the new Minister for Finance, Dr. Shamsudeen Usman, said that only $8.8bn remained for sharing did not mean that the country’s external reserves were only $8.8bn. According to him, the $8.8bn referred to the excess crude oil account that was available for sharing"

http://www.helium.com/items/541527-nigerias-foreign-reserves-how-they-were-mismanaged

Continue digging deep and looking for the truth which is right in front of you. As you earlier quoted the Bible, (in as much as i hate it when bloody hypocrites try to use the Bible to defend their stupidity ) the truth has been revealed. Jonathan should bury his head in shame. too many corruption cases hovering around his head just in 2years of his tenure? that is just too bad.

berem:

[b]Continue digging deep and looking for the truth which is right in front of you.[\b]
As you earlier quoted the Bible, (in as much as i hate it when bloody hypocrites try to use the Bible to defend their stupidity ) the truth has been revealed. Jonathan should bury his head in shame. too many corruption cases hovering around his head just in 2years of his tenure? that is just too bad.

Kettle
Pot
Frying pan
Sorry which does not belong to the family?

berem: Continue digging deep and looking for the truth which is right in front of you. As you earlier quoted the Bible, (in as much as i hate it when bloody hypocrites try to use the Bible to defend their stupidity ) the truth has been revealed. Jonathan should bury his head in shame. too many corruption cases hovering around his head just in 2years of his tenure? that is just too bad.

which truth o?

Which cases o?

Let us know o.

Adura_ngba:

which truth o?

Which cases o?

Let us know o.

you can ask insincere 9gerian.He is still digging deep to find the truth.you can as well help him with a shovel.

berem: you can ask insincere 9gerian.He is still digging deep to find the truth.you can as well help him with a shovel.

--- or just simply shut up if you cant substantiate your claim.

I think that it is a pity that President Goodluck Jonathan's Government declined to take up the challenge of the former Minister of Education, Mrs.Obiageli Ezekwesile, to a public debate on the $67billion USD savings that President Obasanjo left behind in 2007. I do not think that our government ought to have run away from the debating ring. They ought to have accepted the challenge of a rigorous public debate and allow the Nigerian people to listen to it and make up their own minds about who was right and who was wrong. I thought that the response of the Special Assistant to the President On Public Affairs, Dr. Doyin Okupe, to Obiageli Ezekwesili was more logical and made far more sense than that of the Honorable Minister of Information, Labaran Maku's, but I still believe that Obiageli Ezekwesili was right. I believe that the Government's position on this issue and it's attempt to over-aggressively defend what I personally consider to be the indefensible is not only disengenious but it is also essentially dishonest and self-seeking.

The charge that our foreign reserves were heavily depleted between 2007 and 2013 cannot be convincingly or logically denied. In 2007, President Olusegun Obasanjo left 45 billion USD in our foreign reserves and 22 billion USD in our Excess Crude Account. If the two figures are added up the amount that you will come up with is 67 billion USD of savings for our country. This is the figure that Obiageli Ezekwesili cited. It represents what was in both our foreign reserves and our Excess Crude Account put together.

Let us look at the history. When President Olusegun Obasanjo came to power in 1999 Nigeria only had 1.5 billion USD in her foreign reserves and consequently no-one in the world took us seriously. We were poor, weak and lonely and we were viewed as a failed state and a pariah nation. No-one trusted us, no-one wanted to do business with us and no-one seriously believed that we as a people or as a nation were capable of enduring the rigours of serious economic recovery, prudence and fiscal discipline. As far as the developed world was concerned Nigeria was only good for it's endless supply of sweet bonny light crude oil. Yet Obasanjo proved the world wrong and showed them that Nigerians could do far better than they thought. After eight years of good stewardship and the display of fiscal discipline and remarkable prudence he built up those foreign reserves from a measly and pitiful 1.5 billion USD in 1999 to no less than 45 billion by 2007. This was quite an achievement yet sadly what took place after Obasanjo left power was very disheartening. It was not only a downer but it was also sad and unfortunate. I say this because by the Federal Governments own admission, and four long years after leaving 45 billion USD for the Yar’adua administration to build on in 2007, we still only have that same figure of 45 billion USD left in our foreign reserves today. Worse still this was after it had plummeted to a shameful 30 billion USD under late President Umaru Yar Adua. Had it not been for the fact that whatever was coming in after we left in 2007 and over the last 4 years was being recklessly shared and spent by the Yar’adua and later Jonathan administrations our foreign reserves ought to have doubled and reached at least 100 billion US dollars by now. That is just the foreign reserves alone and I am not even adding the Excess Crude Account figures yet. If I were to do that I would be talking about an expected increase of up to 150 billion USD by today. That is what we ought to have in the savings kitty today if the two governments that succeeded Obasanjo knew anything about prudence, good management and fiscal discipline.

The difference is that under Obasanjo it was ”save, save, save” whilst under Yar’adua and later Jonathan it has been ”spend, spend, spend’. Yet if they insist on spending the question is what do they have to show for such high expenditure and what has this cost the Nigerian people in real terms. I believe that these are legitimate questions. Mrs. Ezekwezile may have been inelegant or a little too harsh in her use of words when she made those weighty assertions in her speech but her analysis and conclusions surely cannot be faulted. Yet the Government has given no reasonable explanation or response to her or the Nigerian people and they do not even appear to like the fact that questions are being asked.

As a a matter of fact they appear to believe that it is an achievement for us to be exactly where we were four years ago in terms of our foreign reserves by openly boasting that we have 45 billion USD saved today. The questions that we should put to them are as follows - did you not save anything in the last 4 years in either foreign reserves or the Excess Crude Account? Where did all the money that accrued to you and that you ought to have saved go? How come 4 years after being handed 45 billion in foreign reserves and after billions have come into your hands through record price crude oil sales you still only have 45 billion saved? Is this not strange and absurd? Is this the way a responsive and responsible government ought to behave? Do they know the true meaning of ''saving for a rainy day''?

It is not surprising that the Prime Minister of Great Britain, The Right Honorable David Cameron, asked just a few days ago where the 100 billion USD that Nigeria received from oil sales in the last few years has gone. Would our Government be good enough to answer his question and tell him even if they feel that they don't owe the Nigerian people themselves an explanation? As far as I am concerned it is not something that our government should be proud of that 4 years after Obasanjo handed 45 billion USD to them as savings in foreign reserves they have not built on it in all that time but rather they have spent all the receivables and inflows that came in after that time and that ought to have been saved.

Yet the story does not stop there. It gets worse. Apart from the sorry tale about our foreign reserves, the story about the usage and outright draining of our Excess Crude Account is even more damning. It goes like this. When President Obasanjo left power in 2007 the Excess Crude Account had just over 22 billion USD in it’s coffers. This figure was built up by Obasanjo from zero in 1999 because at that time there was no Excess Crude Account. In 8 years he built it up from zero to 22 billion USD. Yet when the Yara’dua administration and later the Jonathan administration came in ALL the money in that account was shared with the state governors and spent.

The Federal Government saved nothing for a rainy day and instead chose to just spend all the money. It was was initially run down to zero by President Umaru Yar Adua's government but, in fairness to President Jonathan, he has now been able to build it up to approximately 10 billion USD. This represents approximately half the figure that Obasanjo left in that account in 2007 but at least it is a step in the right direction. Yet if both the Yar adua and Jonathan government’s had continued to save and not just spend all the money we would have had at least 50 billion USD in the Excess Crude Account today and not just a paltry 10.

Whichever way one looks at it, when one sees all these figures and considers the strong position that we were coming from in 2007 it represents a failure in fiscal discipline by both the Yar’adua and Jonathan administrations. This is because the Federal Governmentt was meant to build up on the legacy that they inherited in 2007 and not spend and squander all that money. For the purpose of emphasis permit me to repeat the fact that had they been doing the right thing in the last 4 years and not overspending we ought to be hitting at least 100 billion USD in our foreign reserves by now and at least 50 billion in the Excess Crude Account. Yet we have not seen anything near that and instead all we have seen is a depletion and a drain of both accounts and the monies that ought to have accrued to them since 2007.

Finally when President Obasanjo came to power in 1999 our foreign debt was 30 billion USD. Yet by sheer dint of hard work by the time he left office 8 years later he had paid off the foreign debt compltely and for the first time in its history Africa had a debt-free nation. This was a monuemental achievement by any standard and one that which every serious-minded and patriotic Nigerian ought to be proud of no matter what side of the political divide they stand. Yet sadly 4 years later we are back in chronic debt to the tune of 9 billion USD and we are still borrowing. In view of the foregoing it is perfectly legitimate for anyone to ask how come so much money was spent, what it was spent on and how the government has managed our resources over the last 4 years. As a matter of fact not asking any questions would be most unpatriotic and it would lay some of us open to the charge of cowardice and collusion.


Since 2007 we have seen nothing but depletion of our resources and more and more borrowing. Unlike President Obasanjo, both President Yar Adua and President Jonathan's governments did not build up our reserves or save any money. Instead they both spent recklessly and borrowed more and more. As a matter of fact if our government continues to borrow at the rate it has been borrowing for the lastr four years for another two years Nigeria will be back to having a foreign debt of close to 30 billion USD very soon. That was where we were in 1999 and if that were to ever happen it would be a tragedy of monuemental proportions.


I sincerely hope that other than the usual insults, intimidation, sponsored stories, persecution and baseless allegations that are channeled against and heaped on some of us for pointing out these matters and raising these questions, the Federal Government will endeavour to change it's ways and display a greater degree of fiscal discipline and accountability to the Nigerian people. To that extent I am in total agreement with my former cabinet colleague in the Obasanjo administration, Mrs. Obiageli Ezekwezile.

BY:FEMI FANI KAYODE

Rather than tackling the infestation of an open sore, as expected, we have one of the usual suspects trying hard to focus minds on inconsequential matters.

So Madam due process got some of her figures wrong, big deal!

I dare the government to publish statements that show precisely how 27 billion dollars was reportedly spent in just three years, if there is nothing to hide.

Nigeria Details Oil Windfall Spending

By WILL CONNORS And PETER WONACOTT

ABUJA, Nigeria—Nigeria has spent more than $27 billion from its oil-windfall savings account in three years, significantly eroding the total and putting the financial health of Africa's most populous country and biggest oil producer under scrutiny ahead of April presidential elections.

Officials here say they spent $27.5 billion from their so-called Excess Crude Account to weather the global financial crisis and to counteract falling oil prices, and that they can account for "every penny" spent.

But analysts say the depletion of the account—combined with dwindling exchange reserves, a rising debt profile and a lack of fiscal transparency — represent financial setbacks for a country that is poised to become Africa's biggest economy by the end of the decade.

The criticism reflects concern that Nigeria could be deprived of funds from much-needed infrastructure projects and maybe forced into financial straits if the price of oil drops sharply. The debate over the government's fiscal responsibility has fed into a contentious presidential-election campaign.

Since 2008 Nigeria has spent $27.5 billion from the Excess Crude Account, and there is now $5 billion in the account from a 2007 high of $20 billion, according to Segun Aganga, the Nigerian Minister of Finance.

"I have nothing to hide," Mr. Aganga said in an exclusive interview Tuesday. "The [excess crude] account was used, it did not disappear. It was used to augment the budget when there was a sustained fall in the oil price."

Some analysts disagree, however, arguing that the amount spent is not commensurate with need.

"With oil prices up again, withdrawals are not justified to stabilize the economy," said Antoine Heuty, the deputy director of New York-based Revenue Watch Institute, a group working to promote financial transparency in governments. "The $5 billion in the ECA is unlikely to provide a strong enough cushion for the economy in case of a new economic shock."

"Political motivations provide a more compelling rationale for the drawdown on the ECA," Mr. Heuty said. "It demonstrates the grip of state governors on fiscal management in the country and spending pressures to influence the outcomes of the upcoming elections. The lack of transparency regarding the size of the withdrawals and the allocation of the funds fuels corruption and the mismanagement of public resources."

Mr. Aganga said that the government can account for "every penny" that came into the account, but he admitted that he has no oversight over how money from the account gets spent once it is distributed to the Nigerian states.

"That is not my job," Mr. Aganga said. "The problem we have is that we do not talk enough, we do not share information. It's a lack of transparency, a lack of adequate disclosure."

Nigeria weathered the global downturn better than most other countries. The International Monetary Fund projected Nigeria's economic growth at 8.5% in 2010, more than twice as fast as the continent's biggest economy, South Africa. It predicted this year, the economy would grow by 7%, thanks in part to the emergence of a consumer class and demand for retail goods, telecommunications and other services.

Mr. Aganga, who is a former Goldman Sachs executive and was appointed finance minister in April 2010, said that $8.2 billion was spent on improving the country's power sector, though that sector remains erratic and leaves the majority of Nigeria without electricity for weeks at a time. He did not provide any additional breakdowns.

The excess crude account, which was never formally passed into law, was established in 2004 by then-Nigerian Finance Minister and current World Bank Managing Director Ngozi Okonjo-Iweala and accrues funds when the world oil price is above a benchmark oil price set in Nigeria's national budget.

In an interview Tuesday, Nigeria's central-bank governor, Sanusi Lamido Sanusi, said a priority was keeping the economy on track. Rejecting recent IMF comments that Nigeria's currency is overvalued, he said the central bank will stick to a stable exchange-rate policy as the country ramps up its economic growth.

The central-bank governor said Nigeria could grow at twice the clip projected by the IMF by overhauling its lackluster infrastructure.

Write to Peter Wonacott at peter.wonacott@wsj.com

Wall Street Journal

At least you guys should give Sincere 9gerian a chance here, the guy is still presenting his case.

Interesting points you raised Op,

I personally think there is a huge mix-up somewhere in the figures. However, the FG defense team have done a shoddy job putting their defense across. Calling Oby names, and question her integrity as means of defending their boss is tasteless, and tactless. It's a sure way to lose whatever sympathy they have left.

But I lean more towards the FG figure because the record are there, and so many news articles on Nigeria foreign reserve exists for those who care to find it, so I think Oby probably made a mistake in her figure.

On the more pertinent issue of mismanaging the reserve (whether $1 or 100 Billion dollars), I believe the FG team need to be more transparent and engaging, and less use of gutter technique. The jury is still out on the prudence of Sanusi/CBN depleting the foreign reserve to defend the Naira, and of course sharing the ECA money with the 'greedy' governors. This should be very the debated is directed at. Foreign reserve is not something anyone can easily 'chop.'

In any case, this is a straight forward matter. The GEJ team are just bungling the issue by being too overly defensive. Time for GEJ to fire all of them, starting with Maku, then Okupe. No one should lay any hand on Abati, we need him to write the story of the GEJ days when he finally leaves office!

Even @PointB regards the issue of accountability raised as one that is pretty straight forward, while, characteristically, anchoring much of the blame for our depleted foreign reserves on Sanusi's head.

Adura_ngba:

--- or just simply shut up if you cant substantiate your claim.

yes ma!

Retweeted Ado (@anehi2008):

@elrufai We dont DEBATE but our oga go for MONOLOGUE and he need to knows the questions & answers in advance. #presdidentialdebate2011

Do we expect a president who ran away from a Presidential debate to permit his lackeys to honour a debate on finances?

The account was depleted and used in bribing his way through 2011 election. Lemme remind those with short memory that Jonathan is very good at bribing and buying people up. Thesame modus he explored in 2006 when contesting for Beyelsa governorship election.

Where do you think the 7 thousand dollars per delegate used in buying votes on the eve of PDP primaries came from?

Ask any military or paramilitary officials fortunate to be around Beyelsa state few months before governorship elections when Jonathan doled out billions to bribe them in December 2006.

Simply, Jonathan is a crook!

Adura_ngba:

--- or just simply shut up if you cant substantiate your claim.

Your penchant for displaying gross ignorance and arrant stvpidity on this forum knows no bound.
Within the very little time you have spent on this particular board, you have shown yourself to be an ignorant and highly unstable ediot.
You defend everything PDP as if your life depends on it.
With people like you, this country is in big time trouble.
You need to get a life.

seanet01: Your penchant for displaying gross ignorance and arrant stvpidity on this forum knows no bound.
Within the very little time you have spent on this particular board, you have shown yourself to be an ignorant and highly unstable ediot.
You defend everything PDP as if your life depends on it.
With people like you, this country is in big time trouble.
You need to get a life.

Daft. Mo fo.

Rhino.5dm:
The account was depleted and used in bribing his way through 2011 election. Lemme remind those with short memory that Jonathan is very good at bribing and buying people up. Thesame modus he explored in 2006 when contesting for Beyelsa governorship election.

Where do you think the 7 thousand dollars per delegate used in buying votes on the eve of PDP primaries came from?

Ask any military or paramilitary officials fortunate to be around Beyelsa state few months before governorship elections when Jonathan doled out billions to bribe them in December 2006.

Simply, Jonathan is a crook!

Tell 'em baby! you are just too much! I owe you a thousand hugs and kisses

Okay, I need some lappy this night.

berem: Tell 'em baby! you are just too much! I owe you a thousand hugs and kisses

Adura_ngba:

Daft. Mo fo.

M.O.R.O.N

eGuerrilla: Even @PointB regards the issue of accountability raised as one that is pretty straight forward, while, characteristically, anchoring much of the blame for our depleted foreign reserves on Sanusi's head.

It is called Hypocrisy.

eGuerrilla: Even @PointB regards the issue of accountability raised as one that is pretty straight forward, while, characteristically, anchoring much of the blame for our depleted foreign reserves on Sanusi's head.

lol,

I wasn't blaming Sanusi. But we cannot detract the depletion of the foreign reserve with Sanusi/CBN policy of defending the naira with the reserve. Now whether that is a good or bad policy, is matter for another discourse. That said, I support Oby's call for more accountability. She should have asked nicely though.

PointB:

lol,

I wasn't blaming Sanusi. But we cannot detract the depletion of the foreign reserve with Sanusi/CBN policy of defending the naira with the reserve. Now whether that is a good or bad policy, is matter for another discourse. That said, I support Oby's call for more accountability. She should have asked nicely though.

How did you expect her to be Nice when the FG is known for taking issues lightly?
Ezekwezili remains one of the very few Nigerians i so much trust. This woman hardly talk, but when she did, Its usually a whole lot of Sense.

@op nice one dai, but please, recommend this fact to FG, so that they will come out and debate

All these questions should be asked to Mr Olusegun Aganga. It was during his watch as finance minister that the ECA was depleted.
I read some report somewhere which he justified the drawings from the ECA. He said he can account for every penny drawn from the ECA but whether these funds were misapplied or misappropriated are not for him to answer.

Most documents I found on the internet all indicate that the balance on the ECA as at 2007 was about 20billion dollars, while the foreign reserve was untouched.

http://remibabalola.com/download/newsarticle/ExcessCrudeFunds140109.pdf+filetype%3Apdf+%

Asked how much is the balance of the excess crude, the minister said, "We have sufficient funds in the account."
Daily Trust can report that the total Excess Crude Account as at November 2008 was $18 billion....

http://www.budgetoffice.gov.ng/Final%20Q3%20Report%20Budget%20Implementation%20Report.pdf

Inflows into the Excess Crude Account (ECA) as at end September 2009 amounted to N72.74 billion. This is clearly reflective of the below-budget performance of oil revenues as a direct impact of low oil production volumes within the period. . .

berem: Continue digging deep and looking for the truth which is right in front of you. As you earlier quoted the Bible, (in as much as i hate it when bloody hypocrites try to use the Bible to defend their stupidity ) the truth has been revealed. Jonathan should bury his head in shame. too many corruption cases hovering around his head just in 2years of his tenure? that is just too bad.

So the truth is now irrelevant?
Smh!
Unfortunately, I was too busy to follow up this thread yesterday.