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.

Comments
68 comment(s)
Post a comment

Jonathan Extravagancy

With the global protest of corporate greed, the wind is fast blowing towards Nigeria. It is obvious that Jonathan has his croonies to talk down on the facts of Sahara reporters they stand by making use of annonymose with various funny names, to distract readers from paying attention to such an inexperience so called leader, with his display of unprecedented corruption and bad governance being displayed with impunity on fellow Nigerians. On top of it this errand boy called Jonathan is insensitive to the sufferings of Nigerians. This is more than corporate greed. Enough is Enough Nigerians must arise and take our country back from these gagoos.
Patience his wife has gone to LONDON on yet another wasteful spending of the nations resources,

Where are the intellectuals

Where are the intellectuals in Nigeria? Where are the neo-Keynesian? Where are the Marxists? Are the Universities working at all? At this stage you expect debates from both sides of the ideological divide. I weep because we've not even started our journey. Finally, I call on Lamido Sanusi to pull out of these horrible policies. This is not the economics Marx thought us. It's not the economics John Meynard Keynes. Neither is it the type preached by their contemporary, Paul Krugman.

Jonathan Depletes Nigeria's Foreign Reserve

The article is remarkable for the way it combines editorializing and reporting, in the spirit of what has been called the New Journalism. If government officials and the reading public gets comfortable with the bluntness of this kind of material, it will do wonders for the freedom of speech in Nigeria.

The only problem I see is that there is no contextual material upon which to judge whether the $3.5 billion spent in 10 months is outrageous or not. Nigeria is not only a vast country. It also has a center-heavy public sector, which means that all levels of government, from local government to the Federal bureaucracy looks to the central government for most their funding. Was the money squandered? How? Those are some of the questions we are left with. A full report, answering such questions should have stood alone.

Anonymous, how does the article relate to Buhari & B- haram

Mr Anonymous, its obvious you always write for the sake of writing...and each time you did write, you have succeeded in saying nothing! how did Buhari and B-haram relate to this topic....pls try to add value rather than contributing meaninglessly....

Damn with all about nigeria!

Damn with all about nigeria!

So money from oil in ND, dey sweet buhari and boko haram

Its money from the niger delta-oil resource centre-in 1954-u did not share yr groundnut and cocoa revenue with the centre------u only paid a token tax-let the era of fiscal federalism be given birth to in Nigeria by tambuwal. Buhari as presido ke! Its going to be Zamfara law for all! And is he going to rely on ground pyramids to fight the emerging neo liberal thieves from the emirate-let my people go! which way nigeria-which-way-i love my jonathan--ooh yea! where is the 35b? In china or with the bankers in obama village!

Let’s take them to Boko Haram’s Court

The mobster controlling Nigeria is bigger than GEJ. GEJ is just a toy. All Institutions of Government have failed in Nigeria. Even the Judiciary which is supposed to be a symbol of integrity of any sovereign state has collapsed completely. People go to court in Nigeria after stealing and tell the court “You don’t have the Power to try me” and the court will just bow out. Who then have power to try these people? Let’s take them to Boko Haram’s court…that is the only thing they fear now. Show me one thing they did with all that money. Not one job was created. Nigerians are running abroad looking for jobs. Shameless Leaders

Re;GEJ Recklessness

I dont blame GEJ because the neo-liberal agenda of the West would never allow Nigeria to prosper so long as we follow the suit we would remain exploited and under grossly retrogressing. Solution delink from WTO/IMF WORLD free market policies, ensure protectionism.

Ngr. Foreign Reserves

The man is a waste. But, I doubt that Mallam Sanusi would allow a senseless fisherman dip his fishy fingers into our foreign reserves without raising the ante. Besides, feisty Aunty Ngo would frown at gulping ogogoro with our dough. No reasonable person likes a Dumbo. I seriously question the veracity of these "sources" without documentary evidence.

GEJ is a Product of Corrupt Institution. He is helpless

What do you expect? GEJ is just there to waste 4 years of Nigeria. Nigeria is a loose cannon waiting to explode one day. Nigerian Leaders have all lost their moral compass. If Boko Haram should focus their resources in targeting these irresponsible and shameless bandits, they will receive overwhelming support. Until we come together and confront these corrupt institutions of government that is destroying our country, it will not stop. They are all building safe haven abroad for themselves, Nigerian are at home defending them. 70% of these people now have dual nationalities. They don’t see themselves as Nigerian any more. Wake up Nigerians. Where are their children? Sahara Report please take this as an assignment. Conduct an investigative report on all of them you will be shocked at what you will see. I rest my case

Grand conspiracy

This is pure grand conspiracy by some fifth columnist to discredit this president. And SR tend to believe whoever gave this info! Unbelievable. I think its easy for SR to confirm this cock and bull story by this perceive 'source' by simply getting in touch with the representatives of ministry of finance. Aren't they journalist? At least that is what is done in the developed world before going to press, not print rubbish as being the truth.

Here's beautiful piece by

Here's beautiful piece by renowned Professor of International Economics, Paul Krugman. Krugman's study text "International economics: theory and policy" is widely used among Scholars. Krugman captures the ever-growing inequality of income and wealth brought about by these neo-liberal policies in America. Do we then expect development from such policies in Africa? http://234next.com/csp/cms/sites/Next/Opinion/Editorial/5745646-182/losi...

Who the hell are we reserving

Who the hell are we reserving foreign currency for? For the jobless Nigerians or for Western bankers?Spend the damn thing reasonably.

@ken i think you're dull, i've been following most of ur comment

Are you a kid @ken? Just like to know because everytime you made a comment i notice you have nothing up there, i have been reading many of your comments that's why.

the waste is more than $3.5Blion

SR youust understand that Ngr is earning dollars daily at the rate of over $100 per barrel on average from January 2011 till date. If things were normal Ngr foreign reserve should have atleast $25billiom addition bringing the reserve levels to atleast $60billion. But they wasted the whole lot in bribing emirs and chiefs to rig election for Jonathan across the country after bribing INEC, security chiefs and se opposition. The rest was given to d Otedolas, Tinubus and Dangote in d name of petroleum subsidy. What a country! How many times will we here this scam of subsidy removal, since 1990?

Boko Haram Please Kill this bastards in power,enough is enough

Jonathan and his crew will destroy nigeria before 2015 i know he will be the last president, nothing good can come out of pdp, he wants to remove the fuel subsidy without building new refinaries, the nass assembly just aproved N2.5bn for camry cars for themselves, the senate still collect $1.7million dollars salary, joboy refused to cut down the cost of govt but will like to take away the fuel subsidy. Obama only collect $400 thousand dollars a year even dough usa infrastructures are superb, nigeria with no roads, no good hospitals, no security, no water, dead education sector, mass unemployment, their senators take home $1.7ml how much does boy jonathan take home then? what about the governors? We must take our country back from this thieves from jonathan down to Deri are all bloody thieves.

Nigerians Simply Cannot Do It

The mere reason successive governments in Nigeria have not been able to execute any meaningful policies or projects is because Nigerians are NOT INTELLIGENT enough. We parade our PhDs, engineering, accounting, medical, science and other degrees that we acquire fraudulently yet every thing that accrues from Western education eludes us. We may deny this all we want but the taste of a pudding is in its eating. If we think about it, there is no way one segment of the population would not excel if we had a minimum of what it takes. It is in Nigeria that one finds the worst case of waste of humanity. Things will continue to spin out of control until Nigeria disintegrates.

JEG lacks vision

JEG is reckless and has no vision.

It's Buhari's fault

Idiotic southerners (shut up, I'm a southerner too and Jonathan is an abomination) will say it's Buhari's fault. That Buhari should come and explain why he hates christians. Or maybe Islam is responsible for Jonathans theivery. Oh it's probably the fault of northerners. I wonder this president Jonathaan is benefiting those who voted for him and not PDP. Jonathan is building a refinery in his name and that of his friends in Indonesia. How is that going to benefit you - yes you and all others who voted for him. Ya'll are a disgrace!!!!

The first few comments show

The first few comments show how paranoid Nigerians are of "bad bele" and tribalism. I'm not saying it's not present in Nigeria but the truth is that Jonathan's government is just as corrupt as OBJ's and the rest of them. It doesn't have to do with where he is from..it's just how politics is in Nigeria today. The truth is I don't know whether you people are sincerely oblivious to it, or you're just plain satisfied, yet you're the same people who complain about Nigeria.

which way nigeria-which way? I love my Jonathan oh yea!

The expected goal of the plot was said to be the total discrediting of the president and his team that “they will be in a very weak position before a nation that would be clamouring for a change as a prelude to the 2015 poll.” A specific aspect of the plot, the creation of rift between the president and the vice president, was said to be on-going with two recent reports and incidents which portrayed Vice President Namadi Sambo as being in cold war with his boss over assignment of roles and the 2015 succession game plan.

SR shey you are in support of

SR shey you are in support of fuel subsidy, minimum wage and strong Naira. Well, all that is achieved by digging into the foreign reserves. It is simple economics...so sad people like you either don't know or simply chose to be ignorant.

The website of SR, via the voice of boko haram 4 2015

Specific aspects of the agenda, Sunday Tribune learnt, included driving a wedge of discord within the federal administration by pitching the president against his deputy and by pitching the ministers against the coordinating minister for economy, Dr Ngozi Okonjo Iweala.Other areas of the agenda included deliberate misinformation about federal policies and programmes, arousing tribal suspicion through allegations of South-South domination and the portrayal of the Jonathan presidency as anti-people and a puppet of both the International Monetary Fund and the World Bank.

'Ol boy Jonno

When 'ol boy Jonno don smoke im igbo, shak im ogogoro, which one concern am with foreign reserve. Im go just tell Ngozi, 'bring your yansh make I nak'.

Tribune na u biko! Dont mind our goliaths

Plot to discredit the Jonathan administration has been uncovered with three separate influential groups said to be behind the agenda whose implementation is already underway.Findings by Sunday Tribune revealed that the plan is being financially backed by three groups, with each collaborating to ensure a discredited federal administration before the 2015 general elections.The first group was allegedly linked to some loyalists of the late President Umar Yar‘Adua who were said to be bitter about the fall- out of the succession plan

Aso Rock Must Fall

We must match to Aso Rock before these people kill us. Aso Rock must fall the day they remove fuel subsidy.

contd

That is basic economics. But the fear is these monsters would never borrow to use the money rightly. Anyone who thinks this Nation can grow without having credible leaders is joking. Refer to the Asian Development Bank's model on economic growth where the impact of good governance is heavily emphasized. I thus say NO TO SUBSIDY REMOVAL. It would create more problems than intended to solve. We saw in with SAP, We saw it in NEEDS and it's still the same neo-liberal policies being put in place by Ngozi. Protect our future generations from these monsters.

No SR, as demand for imports

No SR, as demand for imports grow, the reserves are bound to go down. This oil dependency is a big curse on the Nation because of the criminality and lack of foresight of our leaders. I suggest that to reduce the threats on the reserve, interest rates should be increased to raise aggregate savings. Then let these criminals borrow from the accumulated savings and invest in building the Nations real sector absorptive capacity. As value added production grows, they can raise revenue in form of taxes and repay whatever they have borrowed.

Gov. agent preyeaganaba

No wonder ur the first to comment because ur under government pay list like facebook boys of Jona page. Shame on you by the time when your kid grow and discovered what u have made Nigeria, them too will never forgive u.

LIESSSSSSSSSSSSSSSSSSSS

Please liers allow Goodluck to do his work.You keep findinf faults in our president,maybe because he is not from the northan Sahara.When Abacha,Babangida,Obasonjo and co was in seat of power no such complain abi.abeg make we hear word,if sahara no get better news to give Nigerians let the brush their mouth and keep quiet,ejor.

Post a comment

The content of this field is kept private and will not be shown publicly.
Comments are limited to a maximum of 1000 characters.
  • Allowed HTML tags: <a> <em> <p> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
  • Web page addresses and e-mail addresses turn into links automatically.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.