A disaffected insider within President Goodluck
Jonathan’s administration as well as several banking
executives have told SaharaReporters that Nigeria faces
a deep economic crisis and massive social gloom after
the 2015 general elections. Speaking from different
perspectives, the sources said President Jonathan had
virtually vacuumed the Nigerian treasury to serve his re-
election campaign, leaving Nigerian banks in dire straits
and many states on the verge of failing to pay salaries
this month.
“The truth is that Mr. President has almost emptied the
treasury, and some of us close to him are even
beginning to get worried about what will happen after
the election,” said the political insider.
The bankers echoed the sentiment. “The reason the
naira has taken such a dramatic plunge over the last
three or so months is that politicians moped up the
hard currency for elections,” said one banker. “I have
never seen anything on this scale, where politicians
snatch up every hard currency in sight, whether dollar,
Euro or pound sterling,” he added. Asked who was
primarily responsible for the situation, the banker said
he would not engage in partisanship. “All I know is that
this country is now in a frightening economic position
—and all these politicians running up and down to
retain or take power have created the situation,” he
asserted.
But another banker was not shy in pointing a finger at
Mr. Jonathan. “The president has been indifferent to the
economic crisis caused by the ongoing campaigns. And
the reason he is indifferent is that he is the major
culprit,” said the executive. He added that the
distribution of largesse by Mr. Jonathan had now
become “one of the few lucrative businesses in Nigeria.”
The bankers said massive layoffs were inevitable in the
banking and other sectors of the Nigerian economy.
They said numerous companies that depended on
imported machinery or other components sourced from
abroad were bleeding cash. “Many Nigerian companies
are experiencing severe cash flow problems. Many of
them are defaulting on long and short-term loan
repayments. So the banks are suffering heavily as well,”
one banker told SaharaReporters.
Two of the bankers disclosed that the banking industry
would have laid off thousands of workers, but that
officials of the Jonathan administration pressured them
to wait until after the elections. “It will take a long time
before banks recover from the current shocks in the
system. There’s no bank strong enough not to retrench
staff,” one said.
The stress in the banking sector, with the prospective
job losses, will be compounded by massive
retrenchment in the civil service at the Federal and
state levels, one source predicted. Our source inside
the Presidency revealed that Mr. Jonathan plans to
follow former President Olusegun Obasanjo’s style by
removing fuel subsidies as one of his first economic
acts. “The truth is that it’s a must that fuel subsidy has
to go because the money is not there to continue
[paying for] them,” he said.
As part of an arrangement to receive slush funds from
oil marketers, Mr. Jonathan and Ms. Alison-Madueke
allowed numerous marketers to make fraudulent claims
and get paid for importation they never made. That
criminal collusion has put Nigeria in a situation where
the oil marketers are being owed N450 billion. “Nigeria
will have to deal with this and other debts from
fraudulently inflated invoices once the elections are
over,” one banker said.
The scam also helped create a recent fuel scarcity in the
country. As the fuel situation threatened to become a
politically costly crisis, Mr. Jonathan asked the oil
marketers to offload fuel they had been “round-
tripping” in order to collect unearned subsidy
payments.
Bankers agreed that the government would find it
extremely difficult to pay that debt after the election
without rolling back or eliminating subsidies altogether.
In recent months, oil marketers as well as operators of
the privatized power sector received massive financial
handouts from the Jonathan administration. In turn,
they donated billions of naira to Mr. Jonathan’s re-
election campaign.
President Jonathan has gone on a dollar-spraying spree
since the general elections were postponed by six
weeks. Our sources disclosed that the president had
doled out more than $200 million, using generous cash
gifts to entice various traditional rulers, politicians and
activists, especially those in the southwest and parts of
the north, to endorse him.
Several sources said much of the president’s campaign
cash is from shady oil deals brokered by Petroleum
Minister Diezani Alison-Madueke. The massive theft of
Nigeria’s crude oil remains an open scandal, and one of
the richest sources of funds for the campaigns. Last
September, Al Jazeera reported that the theft of
Nigeria’s crude oil was at its highest rate in years,
adding that several hundred thousand barrels of crude
are stolen each day.
The continuing crisis of crude oil thefts has persisted
despite the Jonathan administration’s security contract
to Global West Specialist Agency, a company owned by
Government Ekpemukpolo (popularly called Tompolo).
The contract to Mr. Tompolo’s company was for the
supply of 20 patrol vessels to enable Nigeria’s military
authorities to better secure the coastline and stem oil
theft. Mr. Tompolo’s firm was also engaged as a
consultant to prevent crude oil heists.
The rating firm of Standard & Poors yesterday said that
the Nigerian economy faced a clear and present danger.
Nigeria’s external reserves have been significantly
depleted in the past year, said a banker, adding that
many state governments were already looking for loans
to pay workers’ salaries.
source: http://saharareporters.com/2015/03/12/nigeria-faces-post-election-gloom-treasury-emptied-oil-marketers-owed-n450b-mass

Seriously we are in a mess. Jonathan is power drunk and reckless. So, CHANGE is inevitable. #God Bless Nigeria
#God Bless Me
#God Bless Buhari/Osinbajo

SOWORE GO AND DIE

It's really sad people still support this Jonathan. A selfish man that never bothered to tackle bokoharam till he discovered it will affect his re-election. Graduates were scammed during immigration recruitment and he did nothing about it till he discovered it will affect him. Selfish people don't make good leaders because they create a lot of confusion without bothering how it affects their followers. They can't make a single sacrifice for their followers, instead they expect their followers to sacrifice for them all the time.

Massive job losses from small, medium, large and public enterprise is inevitable. A lot of company haven't made any revenue because of the high cost of foreign exchange. Lack of employment poses security risk to lives and properties. The only immediate miracle that will save us is if crude oil goes above $80. The mining and agricultural sector are still underdeveloped and we would need at least 2years to bring them to their full potentials.

At this moment, Nigeria needs serious prayers.…

Lobatan kpatakpata!!

Propaganda as usual

This is why the naira is losing value. GEJ and his cohorts has looted the treasury because they know GEJ is going to lose

Mr. I need protection.

barcanista:
Propaganda as usual

It is only a man that is sitting on his brain while thinking will listen to this kind of news.. Abeg,












GMB loser 2003-2015

Behind every rumor, there is an element of truth. Unless Mr president has a money tree behind the presidential villa, there is the need for him to slow down on his spending spree, life must go on after the election!

Any Nigerian not into self-deceit, and capable of putting two and two together to make 4, will know that this article even errs on the conservative side. Nigeria is so messed-up that it is only an ascetic, feared and disciplined leader , truly and completely on the side of ordinary folks like Buhari, who can save her.

Those who simply want a better Nigeria and are not sentimental, ethnocentric, vengeful, prejudiced, 'paid' and clannish know that Jonathan caused all our problem even as he operated as the wealthiest and most financially-empowered President in Nigeria's history for 5 years with oil selling at $100.00-$110.00 per barrel.

How can Jonathan now be the solution with oil price stuck at around $50.00 per barrel? How can a hideously corrupt, weak, profligate, callous, pro-elite, oligarchy-empowering and morally-bankrupt President manage a period that is going to require ground-shaking reforms and uncompromising pro-people cost-cutting that will hurt the elite and political class seriously to the benefit of the ordinary Nigerian? Has Jonathan not always being 100% about empowering the private-jet Oligarchy? How can this dangerous and anti-people accidental President be the way forward given all he has done wrong and the seriously decimated income Nigeria now has to work with because of falling international oil price?

Why should Nigeria be in a position of oil-related vulnerability if not that the ultra-corrupt, scamming, irresponsible and profligate GEJ failed to diversify our economy adequately over the 5 years he has been in charge? Do some simpleton think intelligent analysts and financial speculators will be fooled by all the m0r0nic and childish propaganda emanating from the GEJ government? The truth is that Nigeria is in serious trouble GEJ and other PDP Presidents before him caused. GEJ , if decent , will step down so that someone with the talent and passion to work for ordinary Nigerians uncompromisingly can rescue our nation before she collapses totally.

barcanista:
Propaganda as usual

My big Bro how much dem don pay u since then na? for "security"

I have respect for this SR because they always have their stories first hand before any news media does

Jonathan is a failed president and the worst failed are people who support him -Michael Jackson 1920

barcanista:
Propaganda as usual

So says the hummingbird. ...

This is expected. After seeing the expensive aggressive campaigns carried out by these politicians, one cannot help but wonder who will suffer for it all.

barcanista:
Propaganda as usual

The naira losing value is propaganda too?

Yeske2:
The naira losing value is propaganda too?

That is not the subject of the article

If you ask me, I think the writer of this article was modest with the truth. Hear him saying some states are at risk of not paying this month's salary, like hell. Most states are owing workers 3 to 5 months salaries already and there seem to be no end in sight for the situation as oil prices keep hovering around the 50dollar mark.

Ask the blabbermouth Ochejoseph whose lenses are always primed on South Western states how much his own state government (Benue) is owing her employees; five good months!!

The current situation is as bleak as can be. Politicians and other crooks are in a frenzied rush to mop up all that is left in the cookie jar because of the heavy cloud of uncertainty hanging over our socioeconomic and political biosphere. Even genuine investors are doing the same, and you can't really blame them. The ripple effect of the insolvency this would generate was what this writer under-emphasised.

barcanista:
Propaganda as usual

you are one of the few people I like their comments,but with this statement of yours,smh.

GEJ is simply a bull in a china shop,ready to destroy anything just to achieve its aim..

A selfish,and corrupt man,surrounded by psychopath,who are only interested in personal gain,bereft of social implication..

It will take grace/rigging for GEJ to win this election..

We all know these things xcept u remain a fool.If we were all opportuned 2 knw ao much PDP had spent,all those robots shouting GEJ till 2019 will knw their future is just a mirage.

I was reading down the article with great interest but when I saw Sahara as source I laughed because is no longer news that they are full of propaganda

I guess that's the reason, why Osun,Oyo,Ogun,Benue,Ondo(allegedly),ekiti(allegedly) are owing their civil servants, because according to the report GEJ/PDP has emptied the treasury...

Hence the above state governments are owing their staffs too since their own treasury was emptied by extension of what GEJ/PDP has allegedly done...SMH

Some of the reports we get to read this election period, makes me wonder how gullible nigerians are...

Yungwizzzy:


My big Bro how much dem don pay u since then na? for "security"

your yarsh

barcanista:
Propaganda as usual

bros, in the scripture, "bar" means "son of" e.g. Simon barjonah which means Simon Son of Jonah... "Barclueless or Barcanista" all na thesame blood... abeg na joke ooooo

Fresh air in deed. GEJ has shown he doesn't give a flying hoot in hell about this country and it is high time he left.

Just too many acts of recklessness. I pity the north east who are sentimentally backing him just because they must be regionally sentimental. We will all suffer this hardship.

nzeadachie:
SOWORE GO AND DIE

Sowore is in NewYork enjoying the dividends of good governance and a functional system. It's you, your family members and Nigerians facing the risk of "untimely" death due to already existing hunger, poverty, insecurity and lack of basic amenities that are about to be further unleashed by this callous administration.

I pity some of you Nigerians.

barcanista:
That is not the subject of the article

You are beginning to embarrass yourself on this forum guy. You are always quick to say APC fans don't back up their claims with facts but what have you done here by merely saying propaganda as usual.

The sliding naira is not part of the discussion? How silly? If the economic is being discussed, Nigeria is not to be mentioned?

Isn't the economic the point of discussion here?

by barcanista(m):
Propaganda as usual

henryangelo:
I was reading down the article with great interest but when I saw Sahara as source I laughed because is no longer news that they are full of propaganda

because is from SR,but with d reality on ground,can't u read d writting on d wall,

Jesusloveyou:
because is from SR,but with d reality on ground,can't u read d writting on d wall,

You equally know the truth,sahara is full of propaganda