Please defend , without emotion or insults , how your candidates leadership of Nigeria is seriously damaging investor confidence in our nation. Okonjo Iweala and many Nigerian technocrat warned about the "deteriorating fiscal situation" but all Aganga did was to insult them .

Investors shun Nigeria’s $500 million Eurobond
By Our Reporter with Financial Times Report


January 21, 2011 12:17PM
   
The Financial Time of London reports that major investors are snubbing Nigeria’s Euro bond which debuts today.
According to the report, investors are concerned at the way funds in the Excess Crude Account have been utilised. ‘’ Mounting concern about a huge outflow of money from Nigeria’s “rainy day” oil fund has prompted some big investors to shun the country’s debut international bond issue on Friday’’, says the paper.

Although Nigerian officials have said there is a lot of interest in the $500m bond issue, the Financial Times says ‘’ several major funds have told the Financial Times they are not interested in the deal because of Nigeria’s deteriorating fiscal situation and worries about how President Goodluck Jonathan’s government has run the excess crude account, designed to store up windfall oil revenues.’’

The excess crude account was set up during the tenure of the former President of Nigeria, Olusegun Obasanjo. According to the Financial Times report, ‘’ at that time there was $20bn in the fund. But as recently as last September there was less than $400m, according to public disclosures, which showed billions flowing out of the account last year.’’

According to Financial Times calculations, ‘’ more than $30bn of revenues – calculated on the difference between the budgeted and market price of oil – has flowed out of the account, according to donor and government officials. The funds went partly in regular payments to state governors over which there was little subsequent oversight, and partly in federal spending on infrastructure. ‘’

The Financial times quotes Antoon de Kler of South African based investec as saying“ the fact they have run down the excess crude account is very worrying,“ “it is unclear where the money is going”. “Why does a country that relies for 90 per cent of its income on oil, which has seen a big rise in price, needs to run down its foreign exchange reserves? For these reasons we are not buying the bond.”

And according to the Financial Times, he wasn’t the only one that expressed these concerns. ‘’ Other big international investment funds, which invest in Africa, also told the FT they would not participate in the sale. Some Nigerian politicians and officials have questioned why foreign reserves have not risen, and the excess crude account did not grow during the past year of rising oil prices.’’

$16 billion is what Nigeria is believed to have earned in ‘’ windfall revenues in 2010,’’ These figures according to the Financial Times were based on information from technocrats working within Nigeria’s administration and the calculations are ‘‘ based on production of 750m barrels of oil with average oil prices $21 higher than the $60 budgeted.’’

Nigeria’s finance Minister , Olusegun Aganga, told the FT that in addition to some of this money going to the country’s Joint venture partners, the country ‘‘ spent heavily on oil production last year and on clearing arrears to oil companies’’ adding that ‘‘ the government had also partly financed the budget deficit out of the excess crude account to reduce domestic borrowing.’’

NEXT’s efforts to get through to Mr. Aganga for his reaction to the Financial Times story have so far been unsuccessful although, we will keep trying.

Haba

Dont you know that when a man is desperate to hang on to power even the coffers are not safe

with over 3500 delegates and other groups like save Nigeria group to bride

where do you think the money is going to come from.

These people dole out money like there is no tomorrow from Oct 1st party to 3 presidential jets and VP house renovation.

Abeg Mr Gbawe i am warning you dont fall my hand

i really hope this man knows what hes doing?

waitin 4 his nairaland P.R.O,Beaf. . .

blacksta:

Haba

Dont you know that when a man is desperate to hang on to power even the coffers are not safe

with over 3500 delegates and other groups like save Nigeria group to bride

where do you think the money is going to come from.

These people dole out money like there is no tomorrow from Oct 1st party to 3 presidential jets and VP house renovation.

Abeg Mr Gbawe i am warning you dont fall my hand

Oga mi , na beg I beg OOO !!! I am just having fun waiting for the armchair economists fans of GEJ (I will spare them disgrace by not mentioning their names) to come and defend this ridiculous slam dunk case of 'cause and effect' i.e ineptitude that directly gives rise to Nationally harmful economic results.

http://en.wikipedia.org/wiki/Cause_and_effect

Cause and effect (also written as cause-effect or cause/effect) refers to the philosophical concept of casuality, in which an action or event will produce a certain response to the action in the form of another event.

Cause = Jonathan's highly inept (perhaps corrupt) handling of the economy that has attracted condemnation home and abroad.

Effect= Financially harmful downgrading of our national economic bouyancy and now apathy towards a national bond that is symbolically very important as an indicator of international investor confidence in NIgeria.

LMAO, this is what happens when you rely on a president whose strategy is to rely on luck, you are guaranteed to be disappointed,

Serious people put plans on paper and execute with maximum effort. 

Gekko:

LMAO, this is what happens when you rely on a president whose strategy is to rely on luck, you are guaranteed to be disappointed,

Serious people put plans on paper and execute with maximum effort.

Indeed. His fans will never agree but everything we are seeing indicates that Jonathan, like Yar Adua, is another accidental leader who does not have what it takes to get our nation where she needs to go.

wetin happen? wetin do fans of jonathan?

This is just another cunning attempt to first re-introduce the overflogged ECA issue and to subtly confuse ECA and foreign reserve.

First what was the ECA meant for? was it backed by any law? If the different tiers of govt pressed on sharing it what could the FG have done , expecially when analysts have glaringly stated the illegality in the fund in the first place.

Secondly , how much did GEJ meet in the ECA, and how much was left by OBJ that you are shouting fans of jonathan.

I am not an economist, but the simple arithemetic  is that if foreign inflows dont come in becuase of the recession in foreign economies and percieved local and foreign apprehension that greeted the reforms, the only way a govt averts a total halt for the economy is to stimulate spending(abi you no know this one?).

The ECA was setup to take care of the rainy day. Oil output and international prices plummeted after OBJ left, hence how else should the govt have handled the shortfalls?

Now the Govt has setup the SWF backed by appropriate laws, hence nobody comes to make demands on the funds anyhow.

Abeg make una go siddon make we hear word.

^^^^^

Sorry sir, but what are you saying?

^^^^^^^^
Aramaic sir.

what dont you understand?

^^^

EVERYTHING YOU TYPED

please start all over again, but not the same way sha

honeric01:

^^^^^

 Sorry sir, but what are you saying?

It took me 3 mins b4 I found out dat he was "speaking" english. . .Same govt dat plans 2 spend 75% of the budget on govt agencies and only 25% on infrastructure

he's speaking gejspeak the new spin 

you know where bribe becomes due and customary

GEJs fiscal irresponsibility is the height of rascality. These leaders never plan on their children inhabiting this country. Most worrying have been attempts by PDP cohorts to "loot the future" eg OGD's N100bln bond in Ogun state.

My point clearly is that the ECA issue has been overflogged. Besides I am not sure if GEJ meet more than $5 billion in that account.

The governors claimed it was illegal. I heard oshiomole(yes same edo governor) in defence of why the ECA should be shared saying on national TV that it was pointless to keep ECA for some imaginary rainy day when people were already suffering.

So why the call for Jonathan's fans. All goveronors both PDP and opposition(I am too sure of oshiomole) governors pushed for the release of the funds. If it was a mistake, then it was a collective one, dont call for GEJ'S head.

U don understand now?

The bonds go on sale tomorrow so what's the Hurry in calling it a failure? If major investors are shunning the bond isnt that good news for minor investors like it happened during the telecommunication bids when OBJ Literally begged the likes of vodafone to come in? Today who's losing?
U ought to be asking what happened 2 the greater part of our excess crude funds, which even in itself is a lame question coming from a Nigerian that ought to know that we've been spending heavily on importation of petroleum products so people like u can give some other excuse 4 yr frustrations, power; so the likes of Oyb can stop bragging about how much he spends on his generator daily and shoring up d value of d naira (abt $900m daily) all these were extra budgetary expenses. Unfortunately, d so called major investors do not care about all these, all they look at are d fundamentals(just like vodafone wont invest cos Ngr is unstable) and their ignorance is echoed by d naive amongst us. but necessity is laid upon us as citizens and wannabe critics to look beyond the surface in our criticisms, but what do we have? senseless threads opened in every forum by folks acting like someone permanently pressed their MUMU Button.

wesley80:

The bonds go on sale tomorrow so what's the Hurry in calling it a failure? If major investors are shunning the bond isnt that good news for minor investors like it happened during the telecommunication bids when OBJ Literally begged the likes of vodafone to come in? Today who's losing?
[b]U ought to be asking what happened 2 the greater part of our excess crude funds, which even in itself is a lame question coming from a Nigerian that ought to know that we've been spending heavily on importation of petroleum products so people like u can give some other excuse 4 yr frustrations, power; so the likes of Oyb can stop bragging about how much he spends on his generator daily and shoring up d value of d naira (abt $900m daily) all these were extra budgetary expense[/b]s. Unfortunately, d so called major investors do not care about all these, all they look at are d fundamentals(just like vodafone wont invest cos Ngr is unstable) and their ignorance is echoed by d naive amongst us. but necessity is laid upon us as citizens and wannabe critics to look beyond the surface in our criticisms, but what do we have? senseless threads opened in every forum by folks acting like someone permanently pressed their MUMU Button.

i don't get d bold. . .if its what I'm thinking,u must be typing in reverse

^^^ Sorry pal, thats what happens when u read with your backside. Now will u be a good boy and try reading with your head? Dont 4get to make sure your mumu button isnt pressed.

^^
ofcourse,my presumption was good.Knew u typed 4rm d reverse. . .do ur self justice by making ur self clearer rather than speaking "english-latin" buddy

wesley80:

The bonds go on sale tomorrow so what's the Hurry in calling it a failure? If major investors are shunning the bond isnt that good news for minor investors like it happened during the telecommunication bids when OBJ Literally begged the likes of vodafone to come in? Today who's losing?
U ought to be asking what happened 2 the greater part of our excess crude funds, which even in itself is a lame question coming from a Nigerian that ought to know that we've been spending heavily on importation of petroleum products so people like u can give some other excuse 4 yr frustrations, power; so the likes of Oyb can stop bragging about how much he spends on his generator daily and shoring up d value of d naira (abt $900m daily) all these were extra budgetary expenses. Unfortunately, d so called major investors do not care about all these, all they look at are d fundamentals(just like vodafone wont invest cos  Ngr is unstable) and their ignorance is echoed by d naive amongst us. but necessity is laid upon us as citizens and wannabe critics to look beyond the surface in our criticisms, but what do we have?  senseless threads opened in every forum by folks acting like someone permanently pressed their MUMU Button.

no, seriously what are you talking about bro?

Gekko:



no, seriously what are you talking about bro?

I can't make sense of it myself but the comments of Nigerians (below) seems to be unanimously clear in its message:

http://234next.com/csp/cms/sites/Next/Home/5664932-146/story.csp

Posted by Tony Smart on Jan 21 2011

, and so the story continues with GEJ's financial recklessness and indiscipline. Yet some Nigerians believe He is the messiah.



Posted by BB on Jan 21 2011

Until they know who we elect as president, the current leadership does not inspire confidence, and especially not when it comes to money matters!



Posted by the Infrastructurist on Jan 21 2011

Just think about it. In jus t a few years we disbursed almost $20bn from our ECA without much oversight. Then today we are trying to raise a measely fraction of that amount (EUR500m) largely to help support infrastructure development. What a joke. Govt clearly dont have their priorities sorted out. Since investors are shunning the bond issue, govt shuld go back and account for the monies that have been witrhdrawn especially during the Yar'adua power vacuum last year. I mean they were able to raise twice the bond amount from Cecilia Ibru alone!!!



Posted by Prof.Hindu on Jan 21 2011

Completely unpredictable result, NOT! It's a shame, it appears that Aganga has joined the ranks of praise singers who only listen to fellow praise singers. Unfortunately, there are no brown envelopes in the global capital markets, the choir had better stick to singing to itself in Abuja.



Posted by integrity on Jan 21 2011

Its unfortunate that the average nigerian man will not read this important news,all they re after is dirty politics full of drama.This is a serious problem



Posted by Philemon Adjekuko on Jan 21 2011

Next should not bother to talk to Aganga. The guy has learnt the trick of talking much and saying little. I stopped listening to him long time ago. The fact is that a lot of money is going down the drain. Those who say that money is being spent on infrastructure should show us proof. What we see contradicts everything we are told. President Jonathan does not appear to show commitment to fiscal discipline.And the governors are a pack of wolves ready to devour whatever is on their path.



Posted by kojirocks on Jan 21 2011

Why am i not suprised? This is the test, forget all the grammer about the economy getting better, we have a home made recession caused by poor economic decisions that are populist to hoodwink the masses, this is crunch time.



Posted by emeka on Jan 21 2011

A world of hypocrisy,



Posted by Abiola.M on Jan 21 2011

Should gej wins april poll,then our economy will be nearing total collapse.He has proved to us several times dat he lacks fiscal discipline when it comes to money matters,this is a big weakness on d part of a true l€äd€r.He has withdrawn huge sums from both Eca&foreign reserves,he has borrowed millions of dollars&also planning to borrow more to finance 2011 budget,yet some nigerians out of sentiments believed he is the right man to lead this nation.



Posted by Nubian Emperor on Jan 21 2011

I speak from a diasporian perspective, but I must stress the implications of fund raisings via selling bonds in EU markets is not appropriate for a country that can't use its excess crude aquired funds to buy into other markets. December 11/12/10 article by William Wallis Nigeria Godfather, certainly brings to mind the organic stroke of wisdom that is the man Obasanjo, I am not singing his praise, under his tenure our debts were eradicated, yet not long after Jonathan Goodluck came in he borrowed nearly a billionaires dollars. Personally I would have serious misgivings about buying bonds flowing into a market from a country that has no serious accountability to up $20b, and now want to sell government issued bonds on the international market, no M & A hints, no buy outs, no serious job creation only corruption. I love Nigeria and as one person said one Nigeria foremost hip-hop artist ruggedman 'it is better to follow a cripple that has balls than an abled body man who will run when a gun is raised' [sic], my analogy is based on Nigeria how can you sell bonds to raise money when you did not invest $20b, it is one things to exhaust a fund; but to have nothing to show for it is a serious inability to secure future confindence in international markets and that is the cross roads where Nigeria is at right now. Concluding, the mere thought of the disruptive inactivities of lacking infrastructures i.e. light, water, food production, transport, health, education, long term job creation in a country with massive opprtunities, as well as housing. A flawed economic structure with no accountability is prerequisite for international disgrace. Finally a government that now should be dealing with the seriousness of reparations, as well as leading Africa, is being bamboozled into follow follow like a sheep, guess what its not even being appreciated and that is the other shame of it. It would be terrible and also shameful if the cash from the sales of such bonds evaporates, who will be held accountable? Nubian Emperor London



Posted by Islam hater on Jan 21 2011

G.E.J, I hope u know what u are doing, millions of nigerians have hope in u mr president



Posted by Mr C on Jan 21 2011

"NEXT’s efforts to get through to Mr. Aganga for his reaction to the Financial Times story have so far been unsuccessful although, we will keep trying", the Nigerian government in its usual nature of snobbing local press, yet willing to take insults from the smallest foreign media rep. This shouldn't come as a surprise to anyone.



Posted by Joshua T. on Jan 21 2011

Whenever governors of the 36 states of Nigeria clamour for "their own share" of the ECA, I find it disturbing that there are practical financial measures with which the source can monitor their effective use of these funds. Assuming there was a benchmark for assessing developmental, social, and economic progress in these states - based on the normal federal allocations to the states - then maybe these governors will appreciate the fact that the ECA is not some random, careless account to be disbursed at their discretion. GEJ seems like a forward thinking man. But this report leaves a huge question mark on his financial management skills.



Posted by jerry rawlings on Jan 21 2011

I have read the another related article on the issue in the FT and one of the investors had this to say: "We met the Nigerians and we were not very impressed. We have seen too much fiscal slippage. The lack of transparency in Nigeria's finances is a problem. We are not buyers of this deal." http://www.ft.com/cms/s/0/5a6b59ac-24d3-11e0-a919-00144feab49a.html#axzz1BciFASR5 Our leaders can't just seem to stop making us an international laughing stock.



Posted by Observer man on Jan 21 2011

That's it folks! Good luck!!!.



Posted by Alfonsn Akanso on Jan 21 2011

And the drama continues. I listened to GEJ Azikiwe during the just concluded pdp primaries saying he is that messiah that will lead Nigeria out of this present mess. But the truth remains that until we all change our political orientation which is centred around the highest bidder takes it, Nigeria will remain at the cross road.



Posted by Jacobs on Jan 21 2011

Aganga is clearly incompetent. We need a Buhari at this time to help fight corruption and indiscipline.



Posted by obafemiaris@aol.com on Jan 21 2011

Should we continue to keep money Overseas when there are infrastructural decay here?



Posted by dimeji on Jan 21 2011

Mr President has shown to us times without number hs perchant for reckless spending of our funds. Is this the same man we want to cast our vote for come April?I think we need a serious us rethink befor Mr President further turns our crumbling nation into a moribund ship. Its sad.



Posted by Charles on Jan 21 2011

I strongly suspect a bulk of the FX reserves disappeared in the 1st quarter of 2010 when Yar Adua was 'missing'. It was a free for all for people in authority then.



Posted by Tbooz on Jan 21 2011

Aaaaaaaaah s20b to less than s400m aaaaah i feel like killing somebody.



Posted by Gen Rommel on Jan 21 2011

Haha! Nigerians believe they can sell their domestic B.S to the World. Try another one-lol



Posted by gogannaka on Jan 21 2011

It is unfortunate,all the issues raised here were raised by Atiku Abubakar during his campaigns but the government and general populace saw it as just smearing the government. Now that the real investors have expressed skepticism over the way the foreign reserve was depleted and now that we are stuck with GEJ for the next 8yrs,perhaps Atiku's words will be read twice.



Posted by terry on Jan 21 2011

Na we get am!! Govt money used by Govt so what is the problem.



Posted by emeka on Jan 21 2011

I blame Nigerians. We are fools. Else why are we quiet when $20 bn plus is looted in broad daylight and within weeks we are being saddled with the hefty interest for a debt less than a fraction of our excess earning for one year. Where's the sense in that? Potentially, the interest could grow to become larger than what we've wasted this year. Add that to our bloated domestic debt obligations and you see a national disaster! Only a fool dissipates huge profits and then trots off like a pig, (Jonathan's) cap in hand, to beg and borrow from sharks. Where's the sense in that? Foreign government who acknowledge the monumental looting of sovereign funds but shut their whilst their banks are used to funnel illicit gains into numbered accounts and tax havens are complicit in our woes. Note that after backing and banking his loot for years, some are just realising they ought to freeze and investigate Ben Ali's stash in their banks. Their silence, double-speak and, sometimes, active participation provides the wind in the sails of the tyranny of rogues despoiling much of the developing world. Anything short of breaking all ties with corrupt regimes and sanctioning them like the ones in Iran and North Korea will not do. Judge for yourselves. That said, the ultimate blame for this particular mess lies with the minds and hearts of millions of suffering Nigerians (at home and abroad) who have refused to make effective demand for an end to this tyranny of thugs. Just as well their faraway accomplices have refused to participate, on this occasion. Perhaps the hawks know something, Anyway, I hope the bonds are completely ignored because they represent the complete absence of integrity in the management of our sovereign wealth. Hopefully our lack of the most unique form of wealth (credit worthiness) will knock the message home: all it takes is a major oil glut and, once again, the IMF will arrive (with claws, chain saw and all).



Posted by Ago on Jan 21 2011

I dey laugh! borrow, borrow. When will those in govt learn to serve not to loot.



Posted by Ooligee on Jan 21 2011

Is this a new story? When fitch was downgrading Nigeria, what did Aganga expect, some Goodluck?



Posted by Mark on Jan 21 2011

Is this the cost of securing the PDP presidential ticket Answers plssssssssssss



Posted by sandy on Jan 21 2011

@Gen rommel you are right on spot. Aganga thought he could sell the same B.S to the world like 3rd fastest growing construction industry in world .Phoney Gdp data of 7.9 % and nigeria is this blah nigeria is that blah blah with out any corresponding changes in ground level. The bond issue will still be subscribed at the end of the day by dubious foriegn funds with active support of government so as to keep the charade of all is well with the economy going among ordinary nigerians.



Posted by Soca on Jan 21 2011

Whether people like it or not, OBJ was the best president we had among all the people who have occupied that position.



Posted by defenda on Jan 21 2011

What a shame,$20b disappeared into the thin air. What a shame,what a country.No one is accountable to any one.Fifty years of oil monies with nothing to show for it. Take a look at Dubai and Saudi Arabia,their citizens do not lack a thing. But Nigeria is an entirely basket case. Politicians are collecting the salaries they do not deserve, and now they are trying to peddle a mere $500 million bonds. Ask them to produce the $20 billion in our reserves that was swandered. Is this the case of the prodigal son(s)?



Posted by Outrageous on Jan 21 2011

Clearly Atiku raised the same issue and got missiles rained on him. Now a South African is also saying the same thing before we are jolted out of our dumb sleep. How do you people think GEJ was able to click the deal with the governors that gave him a "landslide" victory in the recent PDP primaries? By trading off our commonwealth of course. For decades we are being told monies were spent on infrastructure and all it has procured us is the Benin-Ore road, Lagos-Ibadan, dillapidated structures in our universities, the worse police force on the planet,etc, etc. Nigerians are the dumbest citizens on the face of this planet and our politicials would continuously thank their stars for our docility. Else why would OBJ ask God to send him back to Nigeria after he dies?



Posted by Lovevoice on Jan 21 2011

234NEXT should please investigate and tell us how much was left after Jonathan effectively took charge 8 months ago. Did he spend 20B dollars in 8 months? We need to know!!!



Posted by Dems on Jan 21 2011

Even though i cannot comment so much on this, i still subscribe to this! Back in year 2009 when GEJ was the chairman LOC for under twenty(20) world cup, he didn't proof himself to be accountable as the account he promised to audit is yet to be done. Why should i now trust such person and not believe whatever i hear about his accountability.



Posted by Tayo on Jan 21 2011

Even when you offer 5years European and American kids to invest in Nigeria, they will run 800 meter before they will stop, talkless of adults who have experience many scandals such as I save in Iceland, Madoff in USA and Pyramid saving in Russia. I think whoever bring such an idea of € bond deserve double award of "Oponu and Ode". In Nigeria where the stock exchange price manipulation have almost ruined most we investors. On GEJ spending as Yorubas will say "Good Sunday will be known on Satuurday" GEJ spends like yahoo boys, when he assumed power, his main priority is to order a new jet, and no 1 can point to any significant development after almost 1 year in office. If rulers like Late Muritala Mohamed can achieved so much popularity after 6 month in office when the price of crude oil is much lower, there is no excuse for GEJ. Some Nigerian even dubbed GEJ as messiah, I cried for them and families, kudos to NEXT for the PDP convention live coverage, In Mr. president speech and I qoute "we will build more universities" how can you build more universities when current institutions lack basic modern learning infastructures, and high rate of unemployment graduate, Until we rise up against them (Nigeria poliTHIEVIAN) they will continue to suck our resources and the future of Nigerian incoming generation are at risk.



Posted by Ikapa on Jan 21 2011

Is it a wonder he won the primaries, the eca is shared among states govs, that explains there support for GEJ. We are in trouble!



Posted by Daf on Jan 21 2011

What we should be asking is what was done with the money, not jumping to conclusions. When Yar'adua left millions of dollars in Katsina state account after his tenure did people not complain what the money was doing there when there was no development in the state? Everybody wants GEJ to provide 24 hrs electricity, improve infrastructure, pay living wages to workers and thousand and one other things, is he going to fund all these projects by selling crayfish?



Posted by Voice from London on Jan 21 2011

Why was Mr Segun Aganga HIRED from GOLDMAN SACKS? He was amongs those that messed-up the Investment Bank (Goldman Sacks). He does not have any credibility the City Of London. Do we really need a GURU to be our Finance Minister? Contrary to public opinion, Chief Olusegun Obasanjo is the best Nigeria President judging from his records since 1976. Before he left in 2007, DID HE NOT PAY OFF OUR FOREIGN DEBTS? YES HE DID. It is not too late, lets get rid of Segun Aganga and Gookluck Jonathan now. FIRE THEN NOW.



Posted by Abdul Okaka on Jan 21 2011

I read this news on the Financial Times this morning. It has been known for some time now that the excess crude savings were literally depleted as at the end of 2010. It peaked at close to $40 billion and was somewhere in the range of $20- $25 billion when Obasanjo left office. The account was the brainchild of Okonjo-Iweala, and her legacy should be cherished by all Nigerians. Yaradua's government started the abuse which has been continued by his inglorious successor Goodluck Jonathan. I implore Nigerians to set aside ethnic and religious sentiments and VOTE GOODLUCK JONATHAN OUT OF OFFICE. He is inept, incompetent and rudderless. Jonathan's governenmt must explain how $20 billion reduced to $400 million with nothing to show for it. The Petroleum Industry Bill is languishing, the Power Reforms report has gathered dust with no action. At the same time, China is growing at the speed of light and Nigeria is now exporting LNG to meet China's energy needs. Time to VOTE JONATHAN OUT by all means. International investors are not stupid. They monitor currency flows and can see when corruption leads to huge capital outflows. The financial crisis may explain some reduction in Nigeria's foreign reserve but certainly not the bulk of it. The Minister of Finance, Olusegun Aganga and his boss, Goodluck Jonathan MUST explain to Nigerians what is going on.



Posted by Abanikonda on Jan 21 2011

NNPC Slush fund money; Where are the realization(s)? Should we ask Baba Ali Baba Matiu Obasanjo, or Mallam Bakindo, or Atiku. A former finance minister that resigned before Olusegun Aganga took over said that NNPC Slush Fund realizations had been dried up. How do we expect Investors to trust our TERRORIST politicians with their money, in a country where a senator makes N15 million naira per month, more than the salaries of US president and UN Banki Moon combined per year. This is just an example of what's going on in Tunisia. I am very very sorry for Ebele Jonathan; because he's sleeping with "STRANGE BED FELLOWS" within the PDP party, who are nothing other than TERRORIST CROOKS". This is not the time for Nigeria to put up appearances to the World of Investors that she's OK. Nigeria should first round up these PDP crooks, put them in jail, and recover our loots; then the Investors will realize Nigeria means business.



Posted by udu on Jan 21 2011

@ love voice you are the only one talking here coz i see every one calling Jonathan!! jonathan at least there was somebody there before he took over Beside so we were having all that kind of money when all our infrastructure were decaying and there was no job for the masses. am not a politician and i dont want to be either but the truthmust be told. the rich were getting more richer and making the poor masses to be more poor while we were having all that money time will tell one more thing i want people to note too is that the current administartion did more better in terms of development than the OBJ time. even though we still have some Ole Governors. all Nigerians need is that, this account should be audited immidiately and see whom is responsible to the ECA wastage.



Posted by george O on Jan 21 2011

We must not keep our money in foreign reserve for the Americans and the European to use to service their economy while there is no investment on infrastructural development at home. The West are crying foul because there is no more money coming into their economy from the conquered Africans that's why their economy is down. I live in europe and I can tell you guys that the economy in EU countries and America is crap at the moment. If the truth must be told, there is no money in the west now for them to invest anywhere because the banks here aren't giving loans as there is no cash available. Rather than acknowlege this, the FT is writing rubbish because it is Nigeria. Whilst i acknowledge the fact that our excess crude account is depleted, people should note that this money belongs to the three tiers of government. The law setting up that account stipulates this and they (federal, state and LGAs)can only decide what to do with it and so GEJ cannot be blamed for its depletion.Rather than Blame GEJ, the blame should go the state governors who collect their share of the money and squander it with their cronies in the state assembly. In as much as I am not here to defend GEJ, the federal govts share of the money goes into the NIPP projects across the country to give nigeria electricity. Aslo a certain percentage of the money was used to set up the sovereign wealth fund(another type of savings for nigeria. I suggest that GEJ should bring Dr Ngozi Okonjo-Iweala and Prof Soludo back into his economic team. These guys really understand how to manage the economy as Aganga looks incompetent to me. The economic team Yar'dua left for GEJ are a bunch of fools and need to be changed for us to move forward.



Posted by ikubabayeye on Jan 21 2011

@Abdul Okaka, thank you very much. This is the sort of thing that the Nigerian Labour Congress should be demonstrating about but you will not hear a word from them, but they will take to the streets over removal of petroleum subsidy and PHCN privatisation. It is only in Nigeria that looters who call themselves leaders, can get away with this sort of daylight robbery without any repercussions. No wonder nobody takes us seriously.



Posted by emeka on Jan 21 2011

Those who say the money was invested in Nigeria should t please tell us on what it was invested. Nigeria does not provide free welfare housing or healthcare. It makes no welfare payments to cushion biting poverty and citizens are left to source their water and electricity any how they can. Added to that the police force remains a disgrace. Please where did the money go because last time I checked poverty was still killing children all over Nigeria. If that kind of money is sunk into Nigeria even the blind will see, it. Please we have a right to know specifically what our money was expended on and why. Otherwise, there is only one conclusion: it's been stolen by Nigerian Government officials and we are within our rights to tag them 'THIEVES!'



Posted by one nashun on Jan 21 2011

First i dont think it is very fair to put all d blame on GEJ, though i agree that as a leader he has to take some responsibility. However we shudnt forget the governors, who r actually d real culprits in this ECA saga. The truth is that we have to go back to a state of "true federalism", where every state can fend for its self instead of the over bearing dependence on the center (FG). As per the bond, its really a shame!



Posted by Yusuf on Jan 21 2011

What a country! The so-called unprecedented Eurobond lacks credibility, hence its attendant rejection by ever-conscious foreign investors. This further confirms d fact dat dis country n its govt are yet to get d calculation right wt regard to delivering d much-desired dividends of democracy. Honestly, Nigeria will never make it to d promiseland until n unless it's blessed wt selfless n sincere leaders as well as progressive-minded followers. Whether ds will happen or not, it's a questn of time!



Posted by Truck Pusher on Jan 21 2011

folks, johnny boy was not elected or would not be elected to grow the economy but to share the money, and i am quiet content with his performance,



Posted by abisoye on Jan 21 2011

pulling centiment apart,av always known dat GEJ isn't the change we need in Nigeria.We really need to take destiny into our own hands and sort for better alternative.He might be a good person, but people around him is making things worse for Him. God Bless Nigeria!!!!



Posted by kele on Jan 21 2011

I wouldn't be so quick to point the finger at Goodluck Jonathan. My guess is the 3 months of absence on the part of Umaru Yar'Adua is directly involved. The notorious 'cabal' of which we've heard very little, could easily have emptied Nigeria's foreign exchange reserves in anticipation of life after Yar'Adua, for their own personal rainy days.



Posted by Charles Ojo on Jan 21 2011

A Nigerian bank (GTBank) recently raised about Euro750million without much hassles. Our sovereign nation (Nigeria) is struggling to raise Euro500million? Na wa!



Posted by Sifilis on Jan 21 2011

Poor journalism on the part of NEXT! Your headline is informed by the views of a handful of international investors?when actually the auction was oversubscribed to the tune of $1billion . With an externaldebt-to-GDP of 2.3%,what investor will shun this offer. Misleading.



Posted by MOUSA on Jan 21 2011

To be fair William Wallis the FT Nigeria writer is v pally with Nasir, Nuhu, and OBJ and served as a consultant to FCT 2003-2007. therefore not writing from an unbiased perspective.



Posted by Rotimi Oladini Cole on Jan 21 2011

Am afraid the Excess Crude Account might have little or nothing to do with the low level of investors confidence in the economy. Especially at a time when most western economies are also running huge budget deficits. I believe the main reason investors are snubbing Nigeria’s Euro bond is due to the perceived Political uncertainty coupled with the recent bombings and threat of violence by some enemies of state. If there is one thing the market hates, it's uncertainty. Therefore, Aganga should know better comming from Goldman Sachs. The solution lies within the ruling party. Since the presidential primaries are over, the aggreived parties within the PDP must now cast their individual differences aside and work together for the common good of the country.



Posted by Tfire! on Jan 21 2011

The Nubian Emperor has said it all, I just want to ask some questions, please, what is our government going to use the money to do?, is it not the same thing that they are supposed to be doing with the money from the budget, o!, sorry!, the budget is not enough!, Excess crude is not enough!, Now the government needs $500 Million!!??, to develope who and what!?, My anger cannot just be expressed!



Posted by miggs on Jan 21 2011

@sifilis - the crux of the matter is not whether the issue would be over-subscribed or not, but at what price/rate? ours is issued at about 7% while ghana and i think another african country issued at about 5%. you will find takers for issues from even a war-torn country if the reward(interest rate) is high enough. also, while obj was able to accumulate, the eca itself was illegal but he had his way because of a'strong' personality, on the other hand, umaru and gej divvied up all in the account, per the constitution, but is that what was good for nig when we know the governors are not accountable? the leaders we need are those that have a strong personality while also ensuring checks and balances are put in place at all times e.t.c.



Posted by Boli Atepa on Jan 21 2011

The problem is not with Jonathan. It is with Nigeria. The citizens, the legislators, the civil servants, the business community, academics, journalists - the total sum. The total sum of Nigeria equals corruption and high risk. One question for you bloggers: will you put your money down on Nigeria? That's a risky bet!



Posted by Moses Idika on Jan 21 2011

The fact remains that Jonathan and his team are incompetent and colourless! Jonathan at all times finds it very difficult to read his own prepared speech. That shows his level of intelligence, confidence and composure. They tell us that Atiku is an alarmist, but Atiku has constantly raised valid issues and all they do is bring in sentiments, religion, North/South divide etc. Not even once has Jonathan argued a case convincingly on his feet. The truth is: if Nigerians can for once rise above ethnicity, sentiment and other primodial sentiments that have combined to shackle us to the back waters of modernity we shall remain the laughing stock in the comity of nations.