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.
President Jonathan and Chief Obasanjo
President Jonathan and Chief Obasanjo
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.”

http://www.vanguardngr.com/2015/01/55bn-got-wrong-fg-replies-obasanjo/

They keep making careless statements forgetting we are students of history. APC govs should respond to this, this is same way Amaechi was schooled the last time he tried to play politics with ECA funds.

Whatever.
After paying off the foreign debts,
Building 7 power plants
And for saving right from $16 a barrel all the way to $60 A barrel.
Stable economy and exchange rate.
More grease to OBJ'S elbow.

What will buhari inherit?

Debts,terrorism,,divided country, broken economy, free falling currency,institutions of government that are damaged beyond repairs,criminal militancy,sorrow tears and blood.

Ok Obj left 43.13 bil after paying debt despite d petroleum price den . Bt now d reserve is lower despite having higher price for years. I still don't get d math . we must have used half of our reserve to cushion d economic meltdown as at 2011. Did we keep using excess crude of 2012-2013 to cushion economic meltdown? Or all was used for d "fund"? * am just tinkingloud

No Matter what The FG says it just not Vincicate GEJ ..

GMB All The Way..

2oby:
Ok Obj left 43.13 bil after paying debt despite d petroleum price den . Bt now d reserve is lower despite having higher price for years. I still don't get d math . we must have used half of our reserve to cushion d economic meltdown as at 2011. Did we keep using excess crude of 2012-2013 to cushion economic meltdown? Or all was used for d "fund"? * am just tinkingloud

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,.

All of a sudden, the governors are mute, they can't respond to the fact that they kept agitating for the sharing of these monies. The agitation was spear headed by saint Gov. Ameachi. Funny how some people have short memory.

obamartins:
All of a sudden, the governors are mute, they can't respond to the fact that they kept agitating for the sharing of these monies. The agitation was spear headed by saint Gov. Ameachi. Funny how some people have short memory.

You dey mind dem? I can still remember how Amaechi spearheaded the call for the sharing of these monies amongst the various states governments. Abeg OBJ is divisive and hateful!

Neither buhari nor Gej is the change we need

175:


You dey mind dem? I can still remember how Amaechi spearheaded the call for the sharing of these monies amongst the various states governments. Abeg OBJ is divisive and hateful!

They didn't prepare for rainy days, now they open their loud mouth to scream foul. NOI was advising the governors on the need to prepare for this day, but they were so blinded by the amount they intend to loot, now we are here, so let them deal with it. Let them deal with the short fall in allocation, this is were you know a governor that is prudent. Else, trust me, so many of them will be owing months of workers salaries and there will be nothing left for capital expenditure.

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??

What does this refute? He left $43 bn in there right? And oil price was as low as $60, Gej should tell us what he achieved when oil was $145 and the benchmark rate was about $70.

Gej should tell us why we have witness a 30% decline in our currency ( forget the rubbish 13% PDP paid hawks are quoting, just do the math yourself) just because there is a decline in global prices of crude. Why was there not a sharp increase in the value of the naira when oil price was high but there is a decline when it is low.

Gej and Noi should tell us why they did not apply the laws of gravity and or diminishing returns when we were enjoying usually high prices.

Gej and Noi should tell us what they have done with the extra 27 naira on each litres of fuel sold in the country. Why do we still have no functional refinery?

Gej and Noi should tell why no one has been arrested for subsidy scam yet they tell us everyday there is scam in fuel subsidy.

If OBJ does not have any reasonable thing to say he should please shut up stop trying to cause trouble.

oduastates:
Whatever.
After paying off the foreign debts,
Building 7 power plants
And for saving right from $16 a barrel all the way to $60 A barrel.
Stable economy and exchange rate.
More grease to OBJ'S elbow.

What will buhari inherit?

Debts,terrorism,,divided country, broken economy, free falling currency,institutions of government that are damaged beyond repairs,criminal militancy,sorrow tears and blood.

Isnt it the same OBJ that spend £16billion on electricity and got no result to show for it?
Such people should have decamp to APC where is ilks belongs

meracool:
No Matter what The FG says it just not Vincicate GEJ ..

GMB All The Way..

pathetic you.
Isnt it the same OBJ that spend £16billion on electricity and got no result to show for it?
Such people should have decamp to APC where is ilks belongs

Brimmie:
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??

you want to change topic as it has always been don by APC cyber drinkers of blood.
It is well.
Isnt it the same OBJ that spend £16billion on electricity and got no result to show for it?
Such people should have decamp to APC where is ilks belongs

ok

Redoil:
you want to change topic as it has always been don by APC cyber drinkers of blood.
It is well.
Isnt it the same OBJ that spend £16billion on electricity and got no result to show for it?
Such people should have decamp to APC where is ilks belongs

Obj cannot decamp to APC, Obj has wined and dined with the devil (PDP ) so he is gonna stay there to slug it out with them.
From papa deceive pikin, to pikin deceive papa, Nigerians now knows the reasons for the monumental failure that this country has become?.
You hear hear people talking on the streets as if the world is coming to an end and I wonder if the world is coming to an end only in Nigeria.
Obj, PDP and the host of others who had made this country a hell hole are all going down together. Shalom.

listen to the wind of change
https://www.youtube.com/watch?gl=NG&hl=en-GB&v=n4RjJKxsamQ

Unfortunately, many Nigerians are not capable of logical reasoning. They take in --lies, tribal & religious sensationalism hook, line and sinker.

arsetalks:
What does this refute? He left $43 bn in there right? And oil price was as low as $60, Gej should tell us what he achieved when oil was $145 and the benchmark rate was about $70.

Gej should tell us why we have witness a 30% decline in our currency ( forget the rubbish 13% PDP paid hawks are quoting, just do the math yourself) just because there is a decline in global prices of crude. Why was there not a sharp increase in the value of the naira when oil price was high but there is a decline when it is low.

Gej and Noi should tell us why they did not apply the laws of gravity and or diminishing returns when we were enjoying usually high prices.

Gej and Noi should tell us what they have done with the extra 27 naira on each litres of fuel sold in the country. Why do we still have no functional refinery?

Gej and Noi should tell why no one has been arrested for subsidy scam yet they tell us everyday there is scam in fuel subsidy.