ECONOMY: THE LIES OF SAHARAREPORTERS

We have received several enquiries about a story titled “Nigerian Government broke; targets pension savings” posted on the website of Saharareporters.

The story, like many other recent articles by Saharareporters purporting to be exclusive stories on various aspects of the Nigerian economy, is a complete fabrication.

As Nigerians know, the administration of President Goodluck Jonathan recently presented its mid-term report which is a forthright account of the achievements as well as challenges facing the economy.

The country has $48 billion in reserves, including N5 billion in the Excess Crude Account to help shore up the economy. So the idea that the country is broke is alarmist.

It is true that the country is experiencing some revenue shortfalls that everyone knows about due to oil theft for which the President is taking some serious measures.

Also, contrary to the claim in the story that the country has borrowed from local and international banks to finance recurrent spending, the Jonathan administration has in fact reversed the tendency of borrowing to finance recurrent as was the practice in the past.

Also untrue is the claim that the country has been downgraded by international ratings agencies. In fact the truth is the exact opposite; ratings agencies and international investors have consistently stated, through various platforms, that the Nigerian economy is a well-managed one with good prospects in the medium and long term.

Regarding the country’s debt situation, the overall picture is positive as the Coordinating Minister showed clearly in her recent well publicized statement. The multi-dimensional strategy adopted by the Jonathan administration is leading to positive outcomes.

The level of borrowing has been brought down, bonds are being paid off through a sinking fund and the country is not taking the kind of high interest loans that led to the debt burden which existed before the historic Paris Club debt deal. The Borrowing Plan which was approved by State Governors and the National Assembly is focused on financing power transmission projects, inter and intra city rail projects, dams and other key infrastructure.

The notion that the Jonathan government is “eyeing” the N3.4 trillion pension funds to finance deficits underscores the desperation of this “activist” medium and its sponsors. It is a total invention. In fact, the government is currently engaged in strengthening institutions and critical processes in the sector to enhance security and stability of the funds.

With this latest outing, Saharareporters has reinforced its well-earned reputation as a discredited purveyor of falsehood.

Paul C Nwabuikwu,
Special Adviser to the Coordinating Minister

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Anybody that says Nigerian gov is not broke is either blind, lives in d cave or something unmentionable is wrong with him or her. otherwise how will one explain the walking out of all state comisioners of finance on minister of state finance, the inability of fed gov to pay his staff the june salary, rejection of last month alocation by state gov, refusal to release second quater fund for MDA's and so many things dt has been happening. The earlier we accept and find a way forward the better, instead of lies and weaping of sentiment by the blind supporters.

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Hear the name self "Sahara reporters". Terrorist, blistering wind ,scorching sun, deadly scorpion, venomous serpent all dwell in the Sahara desert. Even our Lord Jesus Christ was tempted in the desert. Can any good REPORT come from SAHARA?

There's no use spreading panic news among the populace. The fact that Sahara Reporters does not trace the source of its alarm to specific credible sources is questionable. The general economic outlook is positive and that's what is important.

You are talking about the remaining $48 billion out of the $68 billion OBJ left behind.now answer the following questions?

1 If obj had spent the same way ,will there be any $ 48 billion reserves?
2 how come the reserve is not rising ?
3 what has the money been spent on?
4 why did the commissioners of finance walk out of the revenue allocation meeting
5 who is stealing nigeria oil?
6 why is the government not doing anything to stop it?
7 how many barrels of oil was exported in the last month.
8 why are major oil coys divesting from nigeria?
9 why are wall street bond holders/buyer being told to exercise caution on nigeria because of the economic outlook.
10 why wasn't the same said of OBJ's regime(even with the corruption,the cost of government was going down and revenues were rising).




Even at that, they are still borrowing and spending like drunken sailors with nothing to show for it.
Whatever bullshit* they pull out of their butts does nit change the fact that nigeria is broke and debt is rising.
Countries borrow for two reason
1 to support the national budget (pay salaries,allowances and minor capital project etc
2 to support capital project (build things like refinery ,power plant etc which are desperately needed for development and which cannot be covered by the normal budget
It is obvious that GEJ is not building anything like this.
It is also obvious that GEJ's spending falls into the first category .
Which means that the government is borrowing to cover thing which hitherto ought to be covered by the national budget..

N:B the main purpose of the foreign reserve is to have enough foreign currency (dollars) to pay for our imports(good and services) .
This money is never part of the budget and as such can never be regarded as such.
That is why you have to export things as well.