Jonathan Depletes Nigeria's Foreign Reserve By $3.5 Billion In 2011 Alone
Posted: October 17, 2011 - 16:26


President Goodluck Jonathan's financial recklessness has further depleted the strategic foreign reserve of the Nigerian state by $3.5 billion in 2011 alone, according to information obtained by SaharaReporters.

A source at the ministry of finance told SaharaReporters at the weekend that when Mr. Jonathan came into office, he met a robust foreign reserve in place, but this year alone, he and his gluttonous inner circle have frittered away $3 billion of the reserves, which is now at $32 billion, down from $35 billion in January.

This situation is further compounded by criminal rent seeking and petroleum subsidy applied to petroleum products importers, notably Femi Otedola, who are also members of Jonathan's "Economic Team." In 2011, rent seekers and economic leeches will get $6 billion in the name of petroleum subsidy.

A Central Bank of Nigeria document however states that so far petroleum product importers have only imported $7 billion worth of fuel imports, meaning that only $1 billion of their investment has been spent on import, with Nigeria being made to subsidize and reward their criminal activities with $6 billion.

SaharaReporters also learnt that foreign multinational oil companies are ripping Nigeria off through a maze of sharing and royalty agreements that were agreed upon in the 90s when oil prices were at $30 per barrel. Last week, following an extraordinary meeting of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) on October 10, the CBN revealed in a communiqué that a substantial part of oil production (about 40%) is currently in deep offshore wells.
“Based on terms agreed in the 1990s when oil price was under $30, royalty from oil wells deeper than 1,000 metros is zero percent and the nation is maidenly 20 %of profit by oil companies after deducting their expenses, as a result the country (Nigeria) has had limited benefit from high polio prices and increasing output, with most of the gains going to multinational oil companies under and inequitable fiscal arrangement," the MPC said.

Whereas the MPC recommended the passing of the Petroleum Industry Bill (PIB) to stop the scams in that industry, it however recommended that Nigerians be saddled with the burden of paying for the crimes of the rent seekers involved in petroleum subsidy scams and blamed “discordant voices” for delaying “enabling legislation for correcting fiscal terms.” The committee asked that Nigerians be made to pay higher prices for petroleum products that would put some $10 billion back into the economy.
“Whereas the labour unions have genuine concerns about the impact of subsidy removal on the poorer segments of society, the stark reality is that the country is living above its means,” the MPC said.

The MPC estimates that “simply passing the PIB and removing subsidies on Premium Motor Spirit(PMS) will add at least $10 billion to national reserves annually,” with no consideration of how quickly irresponsible governing vultures will descend on it at the expense of the nation’s poor on whose back such numbers will be made up.

Beaf:

Lets await the ishness about to be unleashed on NL by those who are buying trains to ply Ikirun Road. Na so we see am!

Tom Ford:

I fail to see the relevance of trains to depletion of the foreign reserve.

I'm pretty sure it will further reduce before the year runs out

beaf, aint you supposed to give us an explanation on how your colleagues are milking the taxpayers dry?

3.5billion?i barely see any thing on ground.What an expensive government

This situation is further compounded by criminal rent seeking and petroleum subsidy applied to petroleum products importers, notably Femi Otedola, who are also members of Jonathan's "Economic Team." In 2011, rent seekers and economic leeches will get $6 billion in the name of petroleum subsidy.

A Central Bank of Nigeria document however states that so far petroleum product importers have only imported $7 billion worth of fuel imports, meaning that only $1 billion of their investment has been spent on import, with Nigeria being made to subsidize and reward their criminal activities with $6 billion.

Gbawe:

You should understand that Beaf is the most nauseating sycophant in cyberspace. He supports the worst misrulers and thugs (recently praising OBJ over a foolish and egotistic 'bridge-building' visit that cost a man his life) while demonzing those who are moving Nigeria forward. He is here to imply that this report is false. Well, bright Nairalanders can tell for themselves when they add the insane decision of GEJ that the clearing house of corruption (NNPC) turn around our refineries in 24 months (when the entire world is screaming transparent privatisation) with this section of the article:
. . .

A Central Bank of Nigeria document however states that so far petroleum product importers have only imported $7 billion worth of fuel imports, meaning that only $1 billion of their investment has been spent on import, with Nigeria being made to subsidize and reward their criminal activities with $6 billion.

Beaf:

^
Perhaps you were clever enough to find evidence of "the depletion of the foreign reserve?" Clever boy!
Can you explain exactly how, where and at what point in that bizarre article you found such evidence?

I wanna get high like you guy's, so that I too can rubbish with careless abandon. There must be a trick to it and it must be phucking great fun!!!

Entertaining.

lagerwhenindoubt:

These days Truth is Stranger than Fiction, I'd honestly like to believe that this story is false, but i also recall the Acting-President Saga and how $2billion for "Poverty Alleviation" was released to all State Governors - the next day, the Governor's forum did a U-turn on the matter. It is difficult to make outright claims without hard-evidence but ultimately when such evidence eventually turns out a few years afterwards, everyone seems to be unaffected either emotionally,psychologically or otherwise. it seems that past crimes are forgotten and the criminal standing before them is forgiven and as far as that goes, he is a Saint and should be given a Chance. Nigerians are fond of Risking their Future on Chance, Promises and Looks "the Guy looks innocent" mentality

The Freedom of Information Act is severely limited to what you can ask for - apparently you cannot demand for Information related to how the Government spends Public Funds on Public Projects for the Public - It is CLASSIFIED INFORMATION   How is that for a yansh-bite  

WikiLeaks: Jonathan was corrupt - Aide
Thursday, 08 September 2011 19:23 administrator
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By Abubakar Imam

The herculean resolve by the Economic and Financial Crimes Commission(EFCC) to absolve President Goodluck Jonathan and his family from past corruption allegations seems to be hitting the rocks as his close confidante and his former Commissioner for Information, Mr. Oronto Douglas once opened a can of worms on the president suggesting that the Commander-in-Chief is indeed not a saint.
EFCC Chairman, Mrs Farida Waziri had vehemently denied on Wednesday, that the First Lady. Dame Patience Goodluck Jonathan was investigated of any corruption allegation, describing media reports as mischievous.
"Let me state clearly that the commission will not allow itself to be used to drag innocent people's names into crimes, cases or allegations they know nothing about", she told a visiting non-governmental organisation, the Women Empowering and Enriching Lives (WEELS).
[b]However, Douglas, who was also a human rights activist had once revealed, according to a WikiLeaks report, that on December 18, 2006, just after the then Bayelsa state Governor, Goodluck Jonathan was named the Peoples Democratic Party(PDP) presidential running mate to the late President Umaru Yar'adua,  that Jonathan was well respected among Ijaw leaders for building a successful development programme in Bayelsa, and had been a good governor.
But a new WikiLeaks cable showed that surprisingly, only the day before, Mr. Douglas' true feelings about Jonathan had been different.  In a conversation with an American official, Douglas described Jonathan as "part of the system of corruption that had impoverished the Niger Delta for decades."
When asked by the American for more explanation on the   "successful development programme in Bayelsa", Douglas  said "even his development initiative is viewed with skepticism by the populace".
He said that the outstanding corruption charges against Jonathan and his wife were troubling, and that while Jonathan enjoyed the support of the "Ijaw leaders," the "restive youth" had little respect for the "so-called leaders."[/b]
Douglas, who is now a Senior Special Assistant to Jonathan on Strategy, Research and Documentation, disclosed how close the then Governor of Rivers state, Mr. Peter Odili, came to being named ahead of Jonathan as Yar'Adua's running mate. 
"It wasn't until Yar'Adua was at the podium and publicly announced Goodluck Jonathan to be his running mate that [Odili] realised he was not the PDP's vice- presidential candidate," the writer learned from Douglas. 
According to the story, a friend of Douglas' who had had access to Yar'adua's speech told him that Odili's name was mentioned as the running mate, but just before the convention, it was excised.
Douglas was of the view that Odili had fallen victim of an EFCC which claimed "significant malfeasance" on his part, including an instance where N60 billion was earmarked for a gas plant project that actually cost only N20 billion."
Mr. Douglas also commented on the PDP gubernatorial candidate for Bayelsa State, whom he thought would be Timi Alaibe, who was then the Executive Director of Finance for the Niger Delta Development Commission (NDDC).
Alaibe, Douglas asserted, would be "the worst possible choice."
When our correspondent contacted Mr. Douglas for comment, he declined to answer phone calls nor respond to a text message sent to him.
Find details in the Wikileaks cables below from the United States Consul-General.

sweet9ja:

The other day thesame SR reported that naija is investing almost US$3B in oil refinaries in an Asian country.
Now they reporting that the naija FR has been depleted to US$3.5B.
Wow, I wonder where these subversive elements get their news from and who their pay masters are? Idiots.

Demdem:

Many local papers also reported it and they all got their source from the same report in Indonesia. so where are u getting at?

sweet9ja:

The other day thesame SR reported that naija is investing almost US$3B in oil refinaries in an Asian country.
Now they reporting that the naija FR has been depleted to US$3.5B.
Wow, I wonder where these subversive elements get their news from and who their pay masters are? Idiots.

sweet9ja:

I mean both reports are false. Because many local papers reported it doesn't automatically make it true.
C'mon, how can the GON plan to invest such amount of money in a foreign country and we get the news from a third hand?
Does it make any sense?
Please, let's get our fact right b/4 we cry wolf. It's all propaganda.

Demdem:

Accursed, dont mind SR. they are noted for their lies. Please kindly publish the true status of Nigerian Foreign Reserve since the beginning of this year till date since you seem to be in custody of it. lets try and compare it with what SR claims it is.
ODE OSHI !!!!!!