JESUS! No excess crude account ke Someone please tell me I'm still in Nigeria

Jonathan did not squander excess crude account, foreign reserves – Finance Ministry
By: ONYEKA AJUMOBI ONOCHIE, Abuja January 8, 2015

The Federal Ministry of Finance, yesterday, described as untrue, the allegation that President Goodluck Jonathan administration squandered the nation’s Excess Crude Account (ECA) and the foreign reserves, describing this as one of the synonymous ranting of pre-election period.
Stating this in a statement in Abuja, the ministry said what happened, rather, was judicious application of the savings for the good of the nation’s economy, based on consensus from federal and state governments at various times.

It began, “This statement is issued to, once again, clarify the facts of the recent history and status of Nigeria’s Excess Crude Account and foreign reserves, an issue that is, in this election season, gaining more headline attention. Because of the importance of this key economic indicator, we believe it is important to restate the true position in the interest of the Nigerian public as well as local and international investors.
“First, 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 $43.13 billion – comprising the CBN’s external reserves of $31.5 billion, $9.43 billion in the Excess Crude Account, and $2.18 billion in Federal Government’s savings.

“These figures can be independently verified from the CBN’s records. The figure of $67 billion cited in some recent commentary is, therefore, factually incorrect.”

The ministry said it is a misconception to think that reserves are immutable or cast in stone, noting that the reality is that since May 2007, the reserves have fluctuated in line with developments in the international oil market, rising from $43.13 billion at that time, peaking at $62 billion 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 $31.7 billion in September 2011.

This fall in reserves, it stressed, 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 continued, “The Excess Crude savings, it should be noted, is a component of the reserves, and was largely used to cushion the economy at the height of the global financial crisis in 2008-2009. As a result, Nigeria was one of the few countries in the world that did not seek assistance from international financial institutions at that time.”

The ministry said the fiscal stimulus used to shore up the economy during that period was shared by all three-tiers of government, adding that similarly, savings in the ECA were also used to pay for fuel subsidies for the entire nation and that sharing continued after the crisis ended. “Starting in 2012, such payments have been published each time they are made,” it stressed.

The ministry stressed, “It is true the savings in the ECA would now have been higher but for the fact that a number of Governors, against strong professional advice, actively kicked against continuous building up of the ECA and, indeed, pushed for its sharing. 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 said gain: “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,” adding: “it is also a matter of public knowledge that the Fund would have generated more savings and investments if the same sort of opposition that blocked savings in the ECA had also not been at work.”

The ministry stated that by common agreement between the Federal Government and State Governors, in 2009, an amount of about $5.5 billion was drawn from the ECA and used for investment in independent power projects, noting: “today, various State Governments are shareholders in the projects and hold share certificates confirming their stake in the projects.”

On the use of reserves, it said it is not correct to say that the nation’s external reserves were dipped into or misapplied by the administration, noting that anyone familiar with foreign reserves management will be aware that the Federal Government cannot dip its hands into the external reserves.

“Like in other countries, the management of external reserves is one of the statutory mandates of the Central Bank of Nigeria (CBN). Section 2, Sub-section C of the CBN Act (2007) states that the Bank shall “maintain external reserves to safeguard the international value of the legal tender” – in other words, to defend the value of the Naira,” noting that no president, since the democratic dispensation, has contravened this Act.

It continued, “The reserves are also used to settle both public and private sector foreign currency obligations, including the importation of goods, such as equipment for power sector, and whenever an agency of government or a private individual/company needs to make a payment in foreign currency (e.g. payment of goods and services, settlement of external debt, etc), it must provide the naira equivalent to the CBN in exchange for the required foreign currency.

“From the above, it is clear that Nigeria’s reserves during the period were not squandered but used appropriately in the course of normal transactions required for the development of the Nigerian economy,” it further emphasized.

vjsmiles:
will they ever accept?
even if i am given a presidential position in this country in my dreams i will reject it
blood sucking politricks

pendy79:
thanks sanchez01 I was about to post that information you uploaded before I saw you've done same.

jonaTAN and his ministers are fraud. the worst and most surprising of them all is Madam Okonjo Iweala, How will she face her former colleagues in the World Bank and stare them in the face after jonaTAN is booted out in May 29, 2015.

Tot Aondoaaka will be the worst Justice Minister Nigeria would ever had, never knew Bello Adoke will surpass him. Same Adoke was deeply involved in the Malabu Oil corruption deal and now he has the effrontery to try to deny a whole ECA.

Are some Nigerians so brainless to wish that GEJ continue as President, How can any sane human being pray for the continuation of this fraud of a Government.

You're welcome . Honestly, I'm terribly scared to the point that I find it hard to believe how well corruption has become romanticized in almost every sector of the polity. This is day-light robbery and it's just a shame most Nigerians will overlook this and claim it has been in existence long before now. Jonathan and his crew are robbing the country blind. I'm only praying that electorates put aside their ethnic/religious/tribal sentiments and vote a man whose presence is a terror to the perverted rich in the society. We honestly need the tide to turn. We need a change.

pendy79:
can the moderators, seun lalasticlala maclatunji do the needful to this important thread so Nigerians can understand the kind of leaders running it affairs

obi4eze:
We must bring this government to an end and send Jonathan back to Otuoke come FeBuhari 14.

#ihavedecidedforchange
#buhariosinbajo