Nigeria’s finance minister, Ngozi Okonjo-Iweala has described the allegations by former President Olusegun Obasanjo that the Goodluck Jonathan administration squandered the country’s reserve were untrue, Premium Times reports.
In a statement released by the minister, she debunked the allegation saying, rather than $67 billion, the administration inherited only $43.13 billion.
She clarified that part of the foreign reserves was deployed by the Central Bank of Nigeria(CBN), to stabilize the falling value of the Naira at a time crude oil prices at the international oil market crashed in September 2011 to $31.7 billion.
“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,” Ms. Okonjo-Iweala said.
She further clarified that the balance in the foreign reserves have been fluctuating over time in line with the swings of global crude oil prices in the international oil market.
According to the minister, since May 2007, oil prices reached a peak of $147 per barrel, the country’s reserves rose from $43.13 billion to peak at $62 billion in September 2008 during the Yar’adua/Jonathan Administration.
On the Excess Crude revenue savings, the minister said it was used by the three tiers of government to shore up the economy and cushion the impact of global financial crisis at its height between 2008 and 2009.
Besides, Mrs. Okonjo-Iweala said the savings in the ECA were also used to pay for fuel subsidies to petroleum marketers to ensure uninterrupted supply of fuel in the country.
She blamed the 36 states governors for the depletion of the ECA, stating out that, against strong professional advice, the governors were more interested in the revenue being shared, rather than supporting the continuous building up of the ECA.
“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,” the minister said.
“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,” the minister said.
Yesterday, President Goodluck Jonathan has promised to expose the failings of Nigeria’s former presidents which he claimed has stunted the country’s growth and development.
