The Federal Government, Sunday, reacted angrily to comments by the
former Minister of Education, Dr. Obiageli Ezekwesili alleging that the
governments of Presidents Musa Yar’Adua and Goodluck Jonathan,
squandered $67 billion(about N10.6trn) in foreign reserves, describing
the allegation as “outlandish and clearly fictitious.”
Minister of Information, Mr Labaran Maku who addressed a press
conference on the allegations by the former Vice President of African
Region of the world Bank said the damning verdict passed on the
education sector by Mrs Ezekwesili was a self indictment, as she
presided over the sector without bringing any positive impact on it.
The Information Minister who was flanked by the Senior Special
Assistant on Public Affairs, Dr. Doyin Okupe; Economic Adviser, Prof.
Nwanze Okedegbo and Special Adviser on Performance Monitoring, Prof.
Sylvester Monye; said the allegations of Ezekwesili were curious in the
light of the fact that she has been part of governance in the past.
According to Mr Maku, Ezekwesili’s criticism of the education sector
amounts to hypocrisy as she was part of the sector and contributed to
its sorry state, because , despite receiving N458.1billion between 2006
and 2007 for the sector, there is nothing to show for it, in terms of
achievements.
The Minister said, “If she says education has not worked it means she is saying she did not work”.
He accused the former Education minister of betraying a surprisingly
limited understanding of government finances in her comments at Nsukka.
He noted: “These statements are even more curious in light of the
fact that she has held senior positions in government, and more
recently, a position as a Vice President of the World Bank. However,
rather than speculate about her motives, we would focus on the facts.
“The statement by the former World Bank Vice President that the
governments of Presidents Musa Yar’adua and Goodluck Jonathan have
squandered $67 billion in reserves (including $45 billion in external
reserves and $22 billion in the Excess Crude Account) left by the
Obasanjo Administration at the end of May 2007 is factually incorrect.
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 the Federal
Government’s savings. These figures can be independently verified from
the CBN’s records. The figure of $67 billion alleged in her statement is
therefore clearly fictitious.“However, since President Obasanjo left office, the reserves have
experienced fluctuations, rising from $43.13 billion in May 2007,
peaking at $62 billion in September 2008 during the Yar’adua/Jonathan
Administration when oil prices peaked at $147 per barrel, and falling
subsequently to a low of $31.7 in September 2011. This fall in reserves
was a result of the vicissitudes of the global financial crisis which
caused CBN interventions in the currency market to defend the value of
the naira. The Excess Crude savings, a component of the reserves, was
also used to stimulate the economy at the height of the global financial
crisis to the tune of about $1 billion (or 0.5 percent of our 2009
GDP). As a result, Nigeria is one of the few countries in the world that
did not seek assistance from international financial institutions. It
should be noted that the fiscal stimulus used to shore up the economy
during that period was shared by all 3-tiers of government, including
commitments of about $5.5 billion made under the Obasanjo Administration
for power projects
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