Punchng:

Jonathan didn’t squander external reserves – FG

The Federal Government on Wednesday described as untrue
claims by former President Olusegun Obasanjo that the
administration of President Goodluck Jonathan had
squandered the nation’s foreign reserves.
The Federal Ministry of Finance, in a statement in Abuja,
said there was never a time the reserves rose to $67bn as
alleged by Obasanjo.
It said that the reserves were, among others, used to settle
foreign currency obligations, including the importation of
equipment for the power sector.
Also, the Peoples Democratic Party’s Presidential Campaign
said Obasanjo was entitled to his views.
The former President had on Monday while responding to a
call by a delegation of market women led by the Iyalode of
Yorubaland, Chief Alaba Lawson, and the Iyaloja General of
Nigeria, Chief Folashade Tinubu-Ojo, to lend his voice to the
socio-economic crisis rocking the country, said the nation
did not deserve the situation it currently found itself.
He said the administrations after him had gradually
depleted the foreign reserves from the $67bn he left to just
a little over $30bn.
But the Finance ministry said anyone familiar with foreign
reserves management would be aware that the Federal
Government could not dip its hands into them.
Like in other countries, it explained that the management of
external reserves was one of the statutory mandates of the
Central Bank of Nigeria.
Quoting from Section 2 Sub Section (c) of the CBN Act (2007),
it stated that the bank had been mandated to “maintain
external reserves to safeguard the international value of the
legal tender.”
It said going by this provision, no President since the
democratic dispensation had contravened the Act.
The statement read in part, “It is absolutely not true that the
administration of President Goodluck Jonathan has
squandered the nation’s reserves.
“The facts are clear and indisputable. At the end of May
2007, Nigeria’s gross reserves stood at $43.13bn, comprising
the CBN’s external reserves of $31.5bn; $9.43bn in the
Excess Crude Account; and $2.18bn in the Federal
Government’s savings.
“These figures can be independently verified from the CBN’s
records. The figure of $67bn cited in some recent
commentary is therefore factually incorrect.”
It added, “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 $43.13bn at that
time, peaking at $62bn 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
$31.7bn 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.”
It said whenever an agency of government or a private
individual/company needed to make a payment in foreign
currencies, it must provide the naira equivalent to the CBN
in exchange for the required foreign currencies.
On the Excess Crude Account savings, a component of the
reserves, the ministry said this was largely used to cushion
the harsh effects of the global financial crisis of 2008 and
2009 on the economy.
It explained that Nigeria was one of the few countries in the
world that did not seek assistance from international
financial institutions at that time.
It noted that the fiscal stimulus used to shore up the
economy during that period was shared by all the three tiers
of government.
It said the savings in the ECA were also used to pay for fuel
subsidies for the entire nation and that sharing of the fund
continued after the crisis had ended.
While agreeing with Obasanjo that the savings in the ECA
should have been higher, the ministry noted that the fact
that a number of governors acted against strong
professional advice to insist on the withdrawal of the funds
led to its depletion.
It stated, “It is on record that states even 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.”
Similarly, the Director of Media and Publicity, the PDP
Presidential Campaign, Chief Femi Fani-Kayode, said at a
press conference in Abuja that Obasanjo was entitled to his
views.

Redoil:
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

chronique:
So much lies and misinformations here and there. It's so bad that we do not even know the truth about figures being bandied around. I guess the best bet would be to always verify such figures from the CBN and bureau of statistics.