Low Savings: Okonjo-Iweala Did Not Indict The Jonathan Administration

News Release. Abuja, April 15, 2016

Some recent media reports have distorted comments made by former Finance Minister Dr Ngozi Okonjo-Iweala regarding how lack of political will negatively impacted national savings over the past few years.
Contrary to the slant given by these loud headlines, Dr Okonjo-Iweala did not indict the Jonathan administration in which she served.

Rather, she was referring to what many Nigerians already know: the strong opposition by some governors to the Jonathan government’s efforts to save in the Excess Crude Account and the Sovereign Wealth Fund sabotaged this important national priority.

The governors’ criticism of Dr Okonjo-Iweala’s many calls for the country to save for the rainy day are still fresh in the minds of Nigerians.

It will be recalled that this opposition culminated in the Governors taking the Jonathan government to the Supreme Court in furtherance of their position that the Federal Government had no right to “compel” them to save.

Several knowledgeable persons including former Anambra State Governor, Mr Peter Obi have confirmed these facts.

So the issue of Okonjo-Iweala indicting the Jonathan administration over this very public issue simply does not arise.

We urge the media to always consult for clarification whenever the need arises.

Paul C Nwabuikwu
Media Adviser to Dr Okonjo-Iweala

I hereby challenge your attempt to blame others for not saving for the rainy day. It is not a virtue when you are quick to appropriate all the credit when things are going well, but shift the blame when they go wrong. You blame the state governors— who, according to you, have taken the Federal Government to the Supreme Court—not that a Supreme Court judgment forced your hands. For your information, the governors have never agreed to savings and always threatened court action even under Obasanjo. Why did we save under Obasanjo but not under Jonathan? Two keywords explain it: leadership and integrity. Governor Amaechi said the governors insisted on sharing the funds because they found out that you were illegally fiddling with the savings. So, as Nigerians still wonder, if billions of dollars are now ‘missing’ under your nose, why should governors trust you to keep their money? Do the states that have taken the federal government to the Supreme Court and refused to save also include the PDP governors—who are in the majority? If so, then it is fatal: even governors of your own party, PDP, do not trust you to keep their money! Furthermore, did the governors also stop the Federal Government from saving part of its share? If you ran a surplus budget at the Federal level, you would have had credibility to blame others or to say they did not listen to your advice. The key point is that since you were running huge deficits yourself, it was also in your own interest to share the ECA. You did not show leadership or credibility, full stop!

aieromon:

Charles Soludo, February 2015

masterblogger:
This is a counter thread. Here is the thread.

https://www.nairaland.com/3048820/nigerias-problem-lack-save-under

The media adviser to Ngozi Okonjo-Iweala has rebuffed the claim that she said that Jonathan lack the political will to save during his administration.

Read Ngozi Okonjo-Iweala media Advisers side of the story.

Low Savings: Okonjo-Iweala Did Not Indict The Jonathan Administration
News Release. Abuja, April 15, 2016

Some recent media reports have distorted comments made by former Finance
Minister Dr Ngozi Okonjo-Iweala regarding how lack of political will negatively
impacted national savings over the past few years.

Contrary to the slant given by these loud headlines, Dr Okonjo-Iweala did not
indict the Jonathan administration in which she served.

Rather, she was referring to what many Nigerians already know: the strong
opposition by some governors to the Jonathan government’s efforts to save in
the Excess Crude Account and the Sovereign Wealth Fund sabotaged this
important national priority.

The governors’ criticism of Dr Okonjo-Iweala’s many calls for the country to
save for the rainy day are still fresh in the minds of Nigerians.

It will be recalled that this opposition culminated in the Governors taking the
Jonathan government to the Supreme Court in furtherance of their position
that the Federal Government had no right to “compel” them to save.

Several knowledgeable persons including former Anambra State Governor, Mr
Peter Obi have confirmed these facts.

So the issue of Okonjo-Iweala indicting the Jonathan administration over this
very public issue simply does not arise.

We urge the media to always consult for clarification whenever the need
arises.

Paul C Nwabuikwu
Media Adviser to Dr Okonjo-Iweala

Source : https://mobile.facebook.com/story.php?story_fbid=1133688053348124&id=204329982950607&refid=28&_ft_=qid.6273830349039039477%3Amf_story_key.-2233196737761881421&__tn__=%2As

seunmsg:
Madam Ngozi, stop this double speak for once and stand by the truth. You can't say something yesterday and start denying today. Puts lots of dent on your character and credibility.

Political correctness is one of the reasons why you failed as finance minister, you should not continue in that line now that you are out of office. Speak the truth and stand by it.

masterblogger:


Source?

masterblogger:


Source?

AntiWailer:


The question is :

How did Obasanjo save ?

I don't blame Jonathan he can use anything to negotiate

theshadyexpress:


she did not double speak,it was you that just heard what you wished to hear, Every sane mind know who is to blame for lack of savings and if you need a hint just check the zombie cabinet

seunmsg:


She said there was no political will to save under GEJ, so tell me, who holds the political will to save, governors or the president?

Under OBJ, who gave the needed political will to save when governors of that era also opposed saving vehemently?

theshadyexpress:


and its you that have failed to reason, the presidents political will is not enough cos he can do nothing without the 36 govs and 774lga chairs,the political will of the later two was what she was referring to cos they are also part of the last dispensation, if your ability to reason wide is limited pls dont blame enlightened minds for it cos right now your ignorance is one of the many things Nigeria does not need

theshadyexpress:


and its you that have failed to reason, the presidents political will is not enough cos he can do nothing without the 36 govs and 774lga chairs,the political will of the later two was what she was referring to cos they are also part of the last dispensation, if your ability to reason wide is limited pls dont blame enlightened minds for it cos right now your ignorance is one of the many things Nigeria does not need

Buharism:
Who stoped the FG from saving 51% they got from the money?.

seunmsg:



You don't have to insult me before making your points. Keep the discussion civil and answer my question.

Under OBJ, who gave the needed political will to save when governors of that era also opposed saving vehemently?

theshadyexpress:


pls can you provide us a link to butress the fact that governors under OBJ protested against such?

if u wanna argue be armed with facts or youll appear confused

theshadyexpress:


let me lecture you on how government works just incase youre ignorant

The FG's share of federal revenue has been provided for in the Appropriation act as a source of finance for the budget, the executive dare not use a dime of that money for another purpose other than what is stated in the appropriation act cos that in itself is an impeachable offence, the best bet was to sorce for savings from the ECA as it is monies yet to be shared and so hasnt made its way into the FG purse.

stop been ignorant it wont help you appear wise

theshadyexpress:


let me lecture you on how government works just incase youre ignorant

The FG's share of federal revenue has been provided for in the Appropriation act as a source of finance for the budget, the executive dare not use a dime of that money for another purpose other than what is stated in the appropriation act cos that in itself is an impeachable offence, the best bet was to sorce for savings from the ECA as it is monies yet to be shared and so hasnt made its way into the FG purse.

stop been ignorant it wont help you appear wise

theshadyexpress:


let me lecture you on how government works just incase youre ignorant

The FG's share of federal revenue has been provided for in the Appropriation act as a source of finance for the budget, the executive dare not use a dime of that money for another purpose other than what is stated in the appropriation act cos that in itself is an impeachable offence, the best bet was to source for savings from the ECA as it is monies yet to be shared and so hasn't made its way into the FG purse. does this mean the money will be spent by the FG without the consent of states by the fg? definitely no, what it means is that all excess monies will be saved in trust for all tiers of govt until such a time when there is a cash crunch and the monies will be shared with amongst all tiers with the already existing sharing formula

and if i may ask why didnt APC states also save their share too or were they not in govt during those times too?
stop been ignorant it wont make you appear wise

chukwudi44:
Thank you NOI for clarifying this facts for the zombies!!now where are the mods,this rebuttal must be given the same attention as the previous thread.Lalasticlala over to you

Okonjo-Iweala added that Nigeria was able to save $22 billion under former President Olusegun Obasanjo, which saved the country in 2008, when there was global economic meltdown.

Speaking on the Chilean saving example, Okonjo-Iweala said: “We tried it in Nigeria, we put in an oil price based fiscal rule in 2004 and it worked very well.

“We saved $22 billion because the political will to do it was there. And when the 2008 /2009 crisis came, we were able to draw on those savings precisely to issue about a 5 percent of GDP fiscal stimulus to the economy and we never had to come to the bank or the fund.

“This time around and this is the key now, you need not only need to have the instrument but you also need the political will. In my second time as a finance minister, from 2011 to 2015, we had the instrument, [size=14pt] we had the means, we had done it before, but zero political will. [/size]

wirinet:


Where is the rebuttal? If you see one, please point it out to me.
This is NOI's original statement ;


If this is not an indictment of the Jonathan's administration, i don't know what it is. Remember, the governor's were against the excess crude account in 2004 also.

focus7:
There's no distortion in the fact that remain that Jonathan and his team which includes Okonjo Iweala lacked political will to save, that alone disqualify the leadership of Jonathan administration. One of the quality of leadership is when a leader take his stance in face of pressures from all quarters against a justify policy he has taking. Buhari has faced so many pressures to take decision against his policies in favour of opposition criticism like the call to devalue the naira, and the call to sign the NASS padded budget but he insisted on his policies, that's a leader that understand that he's responsible for every action and inaction in his government not some pushover clueless ineffectual buffoon called Jonathan.