Jonathan Depletes Nigeria's Foreign Reserve By $3.5 Billion In 2011 Alone

Goodluck Jonathan and Ngozi Okonjo Iweala
By SaharaReporters, New York

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.

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Wiping out of $3billion by mr. president jonathan

Its not a disappointment to the leadership of PDP, they took nigerian treasury as their own, but we are not worry but waiting for the day of reckoning, a day of retaliation from we( the mass).

FRESH AIR FOR ALL

THANK YOU MR GOODLUCKKK EBELE JONATHAN FOR KEEPING TO YOUR PROMISES. THE WIND OF THE FRESH AIR HAS JUST STARTED BLOWING AND GUESS WHAT! YOUR COUNTRY MEN HAS STARTED COMPLAINING THAT IT HAS NOT REACH THEIR AREA. ANYWAY LET EVERY BODY BE PATIENCE ( BUT NOT DAME ONE) SOON EVERY ONE WILL FEEL THE FRESH AIR. WE HAVE IT IN ABUNDANCE AND WE WANT TO MAKE SURE THAT NO SECTION OF THE COUNTRY WILL BE SHORTCHANGED EXCEPT MAY BE BAYELSA FOR I COME FROM THERE. THOSE COMPLAINING THAT WE SHOULD MAKE OUR REFINARIES WORKIND THEY DONT MEAN WELL TO THE COUNTRY. IF THE ENVIRONMENT IS AIR POLLUTED HOW WILL MY CITIZEN FELL THE FRESHNESS OF MY AIR! HABA I LOVE MY PEOPLE MORE THAN I LOVE MYSELF.

do not complan

i want to urge nigerians not to complan, that is what election riging gives the voters. we should just tait our belt, no thin beter than this will happon as long as gej sit on presidential seat.

STATE OF OUR NATION

I dont blame Jonathan but Iweala whose presence is always a taboo to Nigeria. At OBJ's time she left Nigerians confused between debt relief and debt cancellation. Now she is back to take off fuel subsidy and spend the reserve at the same time. Where will she get another $50m contract for her brother fronters if the reserve is not touched? My opinion is that such people have no integrety and hence nothing to offer ever. There are more than a million ppl who can do her job better. Unfortunately GEJ takes every advise from "top" advisers like her. GOODLUCK Nigeria

Aso Rock must accomodate all of us

Removal of oil subsidy when you fail to do necessary things?, eeeem, that administration must get ready to accomodate all of in Aso Rock. Mr. president, Dr. Goodlucky Jonathan, pls don't allow this to happen at your regime

We have no leader

Imagine this scenerio one who is incapable of leading is family is being voted for (or whatever forcefully rigged) as the president of this great country. What do u expect, every sector in the country is in the state of calamity. The populace are the one whom everything decend upon except the ruling elite. Jonathan is a mediocre from outset, this is not abusive but a hard truth. until we all become truly patriotic citizen expecially the leaders. We aint seen NOTHING YET!

Re: desist from using Abusive words on names

@J
U claim "have u ever hrd any U.S citizen openly insulting their presidents? Are they entirely good there?"

I would advise you stay away from NTA a bit and watch some other foreign station for news and come back here and make same statement.

The office of the Presidency comes with a lot of comfort and so also lots of hazards. If Jonathan doesn't like heat, he needs not come into teh kitchen !!!
Stop whining here and encourage/advise him to start work on his empty promises. Since you only watch NTA news, below are the campaigh promises with dates and location he made them, i know you wouldn't have seen tem on NTA news.
http://saharareporters.com/column/non-governing-governance-3-4-mountain-...

We are just wasting time

We are just wasting time talking about nothing here-I saw it happen to OBJ. The same stories, the same lies! Then it came to the turn of Awo-no difference-then unto Gani--now GEJ--rubbish! we are just wasting time with each other praying for a revolution-why must it take nigeria 50yrs to realise that HER citizens have no light, health facilites and water-we cannot lie our way through boo haram---the honey is over---those who own nigeria are bigger than GEJ--a drunken sailor fisher---loosen him and let him go with his people period! Enough of this mess in Nigeria! Except them-and our OIL---no other person matters!

General Tombolo

If the govt removes the $6bn subsidy on fuel where will they divert the funds to ? will it be to Power generation, Health ,Security,Defence, Border controls, Infrastructure etc ? Your guess is as good as mine.
Every oil producing country I know still subsidizes oil/petroleum costs to their citizens.
Assuming this caption is correct - why would the govt be dipping its hands into our already depleted foreign reserves? is the money from daily reciepts,taxes and rents not enough ?
Nigerians deserve an explanation.

I NEED FRESH AIR (Bad leader)?

thats the effect of corruption towards bad leader, or effect election rig, good examples for those who support riggers to turn down ours votes 2011 election, if they let truth to be done this evil act would not even arise to remove oil subsidy or deplete foreign reserves so thats the WIND OF FRESH AIR to those who support evil act of PDP?

Tats transformation of nigerians started by jonathan badluck...

truthman

@truthman Show me one piece of evidence that the North contributed revenue from the groundnut pyramids towards the transformation of the country. Quote yr source or any historical book in the universe to back yr assertion-The north was so poor, money from cocoa and palm oil had to be used to pay the salaries of regional civil servants in the North. Lord Lugard brought the North and south together because he felt if the North was left alone-her resources will not be able to feed her-hence the unholy wedding between the North and south! Stop spreading lies-happily u now have oil in Bauchi-what are u waiting for?

desist from using abusive words

@wahala or wht dd u call urself> Wen u knw u question the veracity of these "sources" without documentary evidence, do u av to use abusive words on MR President and call him names? You don't have regards for ur leaders, and am sure u'd want to b someday, have u ever hrd any U.S citizen openly insulting their presidents? Are they entirely good there? Pls make productive contributions and desist from using abusive words on His Excellency.

WHY JONATHAN.

BUT WHAT DOES IT REALLY TAKES TO BUILD OUR OWN REFINERIES HERE IN NIGERIA, IT HURTS ME BECAUSE I VOTED FOR THIS SO CALLED JONATHAN GOODLUCK THINKING HE WAS GOING TO DO SOMETHING MEANINGFUL FOR THE COUNTRY, I GUESS I AM NOW WRONG. HE DOES NOT WANT TO BUILD ANY REFINERIES JUST TO FAVOR HIS CRONIES (E.G FEMI OTEDOLA) TO KEEP IMPORTING FUEL INTO THE COUNTRY, SO SAD.

desist from using Abusive words on names

Wen u knw u question the veracity of these "sources" without documentary evidence, do u av to use abusive words on MR President and call him names? You don't have regards for ur leaders, and am sure u'd want to b someday, have u ever hrd any U.S citizen openly insulting their presidents? Are they entirely good there? Pls make productive contributions and desist from using abusive words on His Excellency.

thats wind of fresh air for you?

Also thats the effect of corruption and rigging during election, all what they spend to win 2011 election now they are trying to gain there cake from you people treasury,
1. again jonathan is incapable to rule these bless country with fairness unless sentiment thats his mind.
2. when he was a governor then he didnt perform in his state how could he do anything for the nation of 37 state.
3. no focus and mission.
4. no declaration of assets
5. he is not straight forward man.
6. he is real corrupt politician.
7. he is the only president who terriorise the whole country in nigeria.
8. he is the one who cause the bomb action in abuja the capital city of nigeria and other places in nigeria.
11. THATS THE EFFECT OF VOTING BAD LEADERS NIGERIANS

thats wind of fresh air for you?

Also thats the effect of corruption and rigging during election, all what they spend to win 2011 election now they are trying to gain there cake from you people treasury,
1. again jonathan is incapable to rule these bless country with fairness unless sentiment thats his mind.
2. when he was a governor then he didnt perform in his state how could he do anything for the nation of 37 state.
3. no focus and mission.
4. no declaration of assets
5. he is not straight forward man.
6. he is real corrupt politician.
7. he is the only president who terriorise the whole country in nigeria.
8. he is the one who cause the bomb action in abuja the capital city of nigeria and other places in nigeria.

11. THATS THE EFFECT OF VOTING BAD LEADERS NIGERIANS

It is most unfortunate that

It is most unfortunate that many Nigerians are wallowing in adject porverty our leaders are weasting our money on their selfish interest. Our leaders should remenber that nigerians will soon wake up to fight their right.

Yes buhari father invest the money for the building refinary

Buhari has big investment in niger delter refinary(when agriculture was the only means of naija source north contribute 92% of the economy in the country, thats were they build the refinaries in niger delta regions) thats why he wanted to takes nigeria out of the hands of BADS leaders we have now in the country, tell jonathan who didnt win 2011 election he use power and INEC thats why his administration is just like a kid riden a tyre of bicycle in the village. let him be wise now nigeria is not a place of sentiments. ONE NIGERIA, BLESS PEOPLE.

Who owns the land

Who owns the land, who owns the river, sea and the Bight that housed the hen that lays the black golden egg we call crude oil and gas that cough out billions of dollars for unpatriotic looters in govt.? Is it the Kanuri ? Is it the Hausa-Fulani? Is it the Zuru Kambari? Is it the Yoruba or the Keje? Who divided the oil and gas land, rivers sea and bights into Oil blocks and why? SR, please, what happened before Oil Prospection, Royalty and Fiscal Agreements were signed. My father told me that the people of Ogoni, Ijaw, Ibibio, Igbo, Efik, Ekoi and Urobo are the legitimate owners of Oil and gas areas of Nigeria.Umu oke

The greatest good SR will do to ........

As long as those who, for over three decades, looted Nigerian treasury, oil revenue, are freely enjoying their billion dollar loots and as long as the World bank list of Nigeria treasury looters remains a classified top secret, so long will present and future Nigerian leaders continue unabated to toe the footsteps of past leaders: OBJ, IBB, Abacha, Gen. Abubakar, Mike Akhigbe, Gen.Useni, Danjuma, Ishaya Bamayi, Wushishi, Alh.Umaru Dikko, Atiku and many others who attained the height of perversion of governance and naked patriotism while looting government treasuries and starching their loots in oversea banks. The greatest good SR will do to us is scooping the World Bank's list of Nig. treasury looters and publishing it. If not, SR Shu'd leave GEJ and his team of neo-looters alone. Umu Oke.

Like the facebook fan page of

Like the facebook fan page of Nigerians Saving Nigerians: http://www.facebook.com/#!/pages/Nigerians-Saving-Nigerians/274663389221287

re: so money from oil in ND... dey sweet buhari

The insinuation rumoured around the federation that Buhari will turn Nigeria to sharia country if elected president can never be true. If a man ruled by the gun for 20months and never did so, one can only marvel at sponsors of such propaganda prior to april 2011 general election. Such individuals have succeded in mortgaging our future and that of our future generations into the hands of wolves and vultures called PDP government. Only when Tunisia, Egypt and Libya jointly come to Nigeria can we have a masses-oriented government.

well said!!!!!

well said!!!!!

Jonathan replete Nigeria Foreign Reserve

One is surprised the way Jonathan is going. He only understand the PDP Leaders' command 'Adamu Go' and off he goes but never look back. I fear O!

Resign honourably Lamido

Resign honourably Lamido Sanusi. Don't betray your school of economic thought. There is nothing leftist about "Madam World Banks" austerity measures. Each time there is a global crisis just like we witnessed during the debt crisis of 1980s they come to the developing countries preaching "liberalisation". Which is only in a bid to bring them out of their own mess.

Happy days ahead. Food for thought!

I'm glad that some Nigerians are now beginning to challenge the VERACITY of what they read and seek PROOF. While some still languish in the abyss of believing ANYTHING, and EVERYTHING that they read. This includes UNCONFIRMED reports by SR and from UNVERIFIED SOURCES! Those with their thinking caps would seek further PROOFS and ask QUESTIONS! What if the SOURCE at the Finance Ministry was simply being MISCHIEVOUS? Others would also ask, what is wrong with spending the reserves RIGHTLY?

As somebody queried - what is the use of the RESERVES, if it's not to reinvigorate the economy? Where is the money to sustain FUEL SUBSIDY, an OVER-BLOATED PUBLIC SERVICE, NATIONAL ASSEMBLY AND INCREASED SECURITY EXPECTED TO COME FROM?

You sound like a fool

You sound like a fool for this reply, as a writer and a publisher, you ought to have asked, how exactly was this money spent? What was it spent on? The problem of Nigeria has lingered for decades and I'm aware that you and are one of the many people who has fed fat of the bad policies in Nigeria, I woke up this morning, thrying to shake off the disappointment about this government and trying to write a letter to Jonathan about what the common man expects of him and some ways he can achieve these, there you are in Ghana talking about killing! Hope you find your way back because I will personally like to stick a knife in that bulging stomach of yours because you are a part of the sordidness called Nigeria and I think you are a coward going to Ghana to cool off...

@yom yom, u funny no be small

Deri will be the first sycophant my cruise missile will hit.Shagari government was far better that GEJ govt. Forget about Deri, he does not have anything better to do, he is always clicking refresh to see if there is any article on his clueless boss.He rushes to defend him as if his black lips are stapled on GEJ blokkus

Air no fresh again ooo!

Subsidy removal will only end up creating more problems. We shouldn't be importing petroleum products in the first place if not for the excessive greed of our leaders.Why not build more oil refineries and work on the existing ones too? It seems GEJ doesn't want to hurt the importers but wants the masses to bear the burden brought by these economic saboteurs.Ironically,some of them are members of his economic 'team'.

 

DERI THE SHAMELESS SYCOPHANT DWELLS ON IRRELEVANCIES

If the money was invested in the improvement of the standard of living of the commoner,so be it but if the money was invested in the bulging pockets of politicians like Bankole and other PDP THIEVES,then I beckon on amadioha the Ibo god of lightning and thunder to descend heavily on those responsible.

Meanwhile DERI the shameless praise singer is busy with his conspiracies,I am happy that most compatriots on the forum are not keeping thier eyes off the ball with his amature diversionary comments.We can change a thing or two by always exposing the idiots who steal our wealth.

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