----- Forwarded by Femi Kupoluyi/NG/AFR/TCCC on 30-11-10 06:50 PM -----
| From: | Mobolaji ALUKO <alukome@gmail.com> |
| To: | USAAfrica Dialogue <USAAfricaDialogue@googlegroups.com>, NaijaPolitics@yahoogroups.com, OmoOdua <OmoOdua@yahoogroups.com>, naijaintellects <naijaintellects@googlegroups.com>, ekiti ekitigroups <ekitipanupo@yahoogroups.com>, Ekiti peoples voice Ekiti peoples voice <ekitipeoplesvoice@yahoogroups.com>, Naija Elections <naijaelections@yahoogroups.com> |
| Date: | 30-11-10 02:46 PM |
| Subject: | [EKITIPANUPO] Re: STAR INFO: Some Financials of the Federal Republic of Nigeria from 2006 to October 2010 {Re: STAR REQUEST: Depositions Needed on External Reserves, Foreign and Local Debts, Excess Crude! |
Dear All:
I see no documented proof of our external debt striking $30 billion again (as Buhari claimed) from a low of $3.5 billion in 2006, but it is certainly not as low as N25.8 billion (as Atiku claimed). It is currently in the $5 billion range (N750 billion) - at least $4.3 billion in June 2010, from Central Bank records - and rising.
The true test will be in 2011/2012, when some six-year valve built into the IMF debt relief of 2006 is hit.
And there you have it.
Bolaji Aluko
-------------------------
CHAMPION
Nigeria: FG External Debt is U.S.$5 Billion --Okonjo-Iweala
Our Reporter
9 April 2010
--------------------------------------------------------------------------------
Lagos — Nigeria's external debt was five billion dollars (about N750 billion) at the end of 2009, World Bank Managing Director Ngozi Okonjo-Iweala said.
Okonjo-Iweala said the Federal Government also carried a domestic debt burden of N3.23 trillion(21.8 billion dollars) during the period.
The former Nigerian finance minister stated this at a lecture on the 24th and 25th convocation ceremony of the University of Calabar, yesterday.
She said Nigeria's external debt profile was 3.5 billion dollars in 2006 and attributed the rise in external debt to "the pace of Gross Domestic Product (GDP) growth.
"In April 2006, Nigeria paid off the last instalment due on its debt settlement agreement with the Paris Club, thereby erasing 30 billion dollars in external debt and reducing government external debt to 3.5 billion dollars."
Similarly, the former finance minister said the current Federal Government's domestic debt virtually doubled from about N1.7 trillion (13.6 billion dollars) at the end of 2006.
She said the country's debt portfolio was apprehensive, adding that the situation was worsened by the realisation that about 20 per cent of the domestic indebtedness was held by foreigners.
For the internal debt, she said one of the bad sides was that banks and other financial intermediaries would prefer to invest in "safe" government bonds than make "risky" loans available to the corporate sector.
She deplored the government's practice of sharing the Excess Crude proceeds, saying the action negated the essence of the establishment of the account.
She expressed regret that a total of 20.1billion dollars which was available in the Excess Crude Account at the end of 2008 had, by the end of 2009, dropped to 7.8 billion dollars.
Okonjo-Iweala described the sharing habit as reckless and advocated the investment of the excess crude proceeds in the agriculture and power sectors to grow the economy.
She noted that some states and even the Federal Government could not account for expenditure of the funds and urged the public to strive always to be abreast with government expenditure.
"You must know how much the states get every month and how they spend it," Okonjo-Iweala said.
She urged students to take up the challenge and begin to enquire into government income and expenditure as it was the right of every citizen to know everything about government.
Meanwhile, Okonjo-Iweala, says the ongoing reform in the banking sector in Nigeria is in the right direction.
"I support the reform because the substance of the exercise is right", she declared in her lecture on Thursday in Calabar, at the convocation of the University of Calabar.
She, however, said that implementation of the reform should be transparent and regularly brought to the public domain "so that Nigerians, especially the educated and the interested, will be carried along".
The former Finance Minister explained that she endorsed the exercise reform because the bankers themselves acknowledged that they had a problem and had set out to solve it
"Owning up to a problem and cleaning it up is more honourable and acceptable than covering it up and extending it", she stated.
She attributed the bank crisis to indiscipline of key players in the sector, saying that the issues involved were being deliberately glossed over by those who should check it.
Okonjo-Iweala noted that the global financial meltdown was caused by failure of regulation of critical financial institutions and issues in the world's fiscal market, particularly the stock sector.
She traced the crisis to the U.S. where, she explained, transactions in financial products were being carried without regulation.
She, however, disclosed that the recovery process had begun, noting that although fragile, the rate was between one and two per cent in the developed countries.
She put the recovery rate at 3.6 per cent in African economies, adding that the growth would be noticed in the later part of 2011 and well into 2012.
On Tue, Nov 30, 2010 at 8:09 AM, Mobolaji ALUKO <alukome@gmail.com> wrote:
___________________________________________________________________________________________________________________________________
QUOTE
General Buhari said investigations by the CPC revealed that the nation's external reserves "which stood at about $64billion, when Yaradua/Jonathan were sworn in now stands at about $30billion; our foreign debt which was reduced by the OBJ's regime from $37.5billion to $3.5billion is now back to over $30billion; and our excess crude which stood at about $20billion is now less than $1billion. Also our domestic debt is over N3.5trillion with our local contractors' at the receiving end.
UNQUOTE
QUOTE
The former Vice President (Atiku) said the recent release by the Central Bank of Nigeria that the nation's foreign reserves fell by a whopping 15 percent from $40.75billion to $34.57bn within a year confirms his earlier warning that the government needs to devote more attention to the economy....Finally, Atiku expressed fears that the federal government has returned Nigeria into the list of major debtor nations. He said latest report that Nigeria's external debt has risen to N25.8billion is another evidence that the economy deserves a better manager......
He quoted Veronica Kalema, who signed the statement on behalf of the Sovereign rating agency that "there is no clear legal basis to determine how excess crude account funds should be shared between the federal, state and local governments and the savings have fallen to less than $500 million from $20 billion in 2007 amid political wrangling."
UNQUOTE
DOMESTIC DEBT (in Billions of Nigerian Naira)
| Item | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
| TOTAL | 794.81 | 898.25 | 1,016.98 | 1,166.00 | 1,329.74 | 1,370.32 | 1,525.91 | 1,753.26 | 2,169.63 | 2,320.31 | 3,228.03 |
| TOTAL Interest PAYMENTS | 7 9.57 | 108.49 | 155.40 | 170.64 | 200.00 | 203.64 | 150.45 | 166.84 | 185.37 | 232.98 | ??? |
Source: Debt Management Office (DMO) website http://dmo.gov.ng/
FOREIGN DEBT (in Millions of US Dollars)
| CREDITOR CATEGORY | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | June 30, 2010 |
| Sub-Total Official | 24,509.90 | 24,783.7 | 25,012.01 | 28,396.89 | 30,563.63 | 33,719.63 | 18386.38 | 2934.38 | 2976.01 | 3,720.36 | 3,947.30 | 4,269.71 |
| Sub-Total Private | 3,529.31 | 3,489.91 | 3,334.99 | 2,594.97 | 2,353.18 | 2,225.03 | 2,091.59 | 610.11 | 372.21 | 0.00 | 0.00 | 0.00 |
| Grand Total | 28,039.21 | 28,273.68 | 28,347.00 | 30,991.87 | 32,916.81 | 35,944.66 | 20,477.97 | 3,544.49 | 3,348.22 | 3,720.36 | 3,947.30 | 4,269.71 |
Source: Debt Management Office (DMO) website http://dmo.gov.ng/
NIGERIA'S FOREIGN RESERVE MOVEMENT Selected Dates Between December 31, 2006 and October 1, 2008 and
| Date | Gross |
| January 31, 2006 | US$31.72 billion |
| December 31, 2006 | US $42.3 billion |
| January 31, 2007 | US$43.51 billion |
| April 30, 2007 | US$43.53 billion |
| May 31, 2007 | US$43.17 billion |
| June 30, 2007 | US$42.63 billion |
| September 30, 2007 | US$47.93 billion |
| January 2, 2008 | US $51.2 billion |
| February 1, 2008 | US$54.63 billion |
| February 22, 2008 | US$56.88 billion |
| September 10, 2008 | US $63.5 billion |
| October 1, 2008 | US $61.99 billion |
Source: Miscellaneous news sources
NIGERIA'S FOREIGN RESERVE MOVEMENT (US$)
11/9/2009 – 11/26/2010 (Certain dates and Month ends and/or Beginnings only shown)
| Date | Gross | Liquid | Blocked |
| 11/26/2010 | 33,130,211,792 | 30,866,612,161 | 2,263,599,631 |
| 11/1/2010 | 33,565,476,287 | 31,204,028,283 | 2,361,448,004 |
| 10/4/2010 | 34,618,455,576 | 32,200,081,259 | 2,418,374,317 |
| 9/30/2010 | 34,589,153,200 | 32,163,535,962 | 2,425,617,238 |
| 9/1/2010 | 36,442,355,815 | 34,034,771,441 | 2,407,584,374 |
| 8/2/2010 | 37,082,587,343 | 34,583,517,153 | 2,499,070,189 |
| 7/30/2010 | 37,080,688,341 | 34,573,608,926 | 2,507,079,415 |
| 7/1/2010 | 37,202,091,748 | 34,926,692,511 | 2,275,399,236 |
| 6/1/2010 | 38,706,419,262 | 36,503,463,714 | 2,202,955,548 |
| 5/4/2010 | 40,124,110,816 | 37,942,140,495 | 2,181,970,321 |
| 4/30/2010 | 40,305,917,654 | 38,116,493,650 | 2,189,424,004 |
| 4/1/2010 | 40,483,328,605 | 38,660,392,772 | 1,822,935,832 |
| 3/1/2010 | 41,518,155,769 | 39,661,507,695 | 1,856,648,074 |
| 2/1/2010 | 42,175,174,165 | 40,190,719,099 | 1,984,455,066 |
| 1/4/2010 | 42,398,467,481 | 40,550,626,147 | 1,847,841,333 |
| 12/31/2009 | 42,409,433,657 | 40,545,192,455 | 1,864,241,202 |
| 12/1/2009 | 42,938,092,583 | 41,040,718,045 | 1,897,374,538 |
| 11/30/2009 | 42,988,757,635 | 41,102,399,552 | 1,886,358,083 |
| 11/25/2009 | 42,863,595,904 | 40,992,074,165 | 1,871,521,740 |
| 11/24/2009 | 42,285,451,079 | 40,464,542,868 | 1,820,908,211 |
| 11/23/2009 | 42,342,931,029 | 40,535,136,085 | 1,807,794,944 |
| 11/20/2009 | 42,296,835,679 | 40,490,076,587 | 1,806,759,092 |
| 11/19/2009 | 42,434,043,912 | 40,627,140,137 | 1,806,903,775 |
| 11/18/2009 | 42,612,261,833 | 40,800,923,816 | 1,811,338,017 |
| 11/17/2009 | 42,592,731,861 | 40,770,417,497 | 1,822,314,364 |
| 11/16/2009 | 42,848,367,719 | 41,022,814,827 | 1,825,552,892 |
| 11/13/2009 | 42,871,572,960 | 41,042,165,888 | 1,829,407,072 |
| 11/12/2009 | 42,880,420,941 | 41,053,715,852 | 1,826,705,089 |
| 11/11/2009 | 43,224,857,309 | 41,393,850,695 | 1,831,006,614 |
| 11/10/2009 | 43,223,998,098 | 41,403,942,908 | 1,820,055,190 |
| 11/9/2009 | 43,459,349,920 | 41,633,884,492 | 1,825,465,428 |
Source: http://cenbank.org/Intops/Reserve.asp
FROM THE ARCHIVES
The Global Financial Meltdown: Impact on Nigeria's Capital Market and Foreign Reserves (Mobolaji E. Aluko, PhD; October 24, 2008)
QUOTE
Foreign Reserves – Are They Safe?
We now turn our attention to our foreign reserves, and inquire what the impact of the global crisis might be, noting that:
1. at a quantum of about $62 billion as of October 1, 2008, our foreign reserves compares with those of many countries in the world [See Table 5.]
2. At the end of 2006, 87.3% of the naira value of N5.617 trillion ($42.3 billion) was denominated in US Dollars, 8.7% in Euro currency, 1.78% in British Pound Sterlings, 0.95% in Japanese yen and the rest (1.27%) in other currencies. At the end of 2007, these percentages stood at 86.2%, 5.92%, 2.19%, 5.57% and 0.12% respectively, reflecting a significant increase in Yen holdings out of the increased N6.549 trillion ($51.33 billion) for last year. There is some indication that there has since been a re-denomination such that 67% of the foreign reserves are in US dollars, 24% in Euros, 3.7% in British Sterling, 3.6% in Japanese Yen, 0.1% in Swiss Franc, and the rest (1.6%) in a basket of other currencies, but this has not been confirmed. …… In short, there is almost no where to hide, and it would appear that it would have been better if Nigeria had NOT re-denominated (as rumored) because of the currency hits recently taken by both the Euro and Pound Sterling.
3. On October 3, 2006, some $7 billion (representing some 18.40% of total external reserves at the time) were apportioned to 14 Nigerian banks (out of the 24 consolidated banks as confirmed July 2004) and their 14 global asset management partners. ……. The CBN has traditionally kept the external reserves as deposits with foreign banks. This is the first time that it is appointing foreign assets managers to manage part of its reserves, in line with global best practice."
…….What the above information shows is that the overwhelming majority of our counterpart asset managers themselves have been having significant trouble managing themselves, and one wonders what kind of "toxic exposures" they have inflicted on our foreign reserves, how safe our piled-up monies are in all of these foreign banks. One hopes that they have not been "eaten" up by the proverbial termites where we thought that they were safe, rather than use them strategically in developing our country as many long-suffering Nigerian citizens have called for. This is more so when we note that out of the 14 asset managers listed above, 10 of them have either gone bankrupt, been taken over, or have been partially or fully nationalized by their countries within the past one month, with only Cominvest, Crown Agents, Investec and Black Rock seemingly above the fray.
It is of course only the Central Bank of Nigeria that can answer the question of our foreign reserves' safety. One therefore first turns to public information that the CBN provides on its website to attempt to ferret the true situation out.
If one looks at its website www.cenbank.org – Foreign Reserve Movement page – starting from January 2, 2008, one sees that our gross foreign reserves steadily increased from $51.2 billion to a high of $63.5 billion on September 10, 2008, before declining to a value of $61.99 billion on October 1, 2008 – the last recorded entry. That is a decline of $1.5 billion within a two-week period, following which, after three weeks (today is October 23, 2008), there are NO MORE ENTRIES in the table.
One wonders why this lack of further entries is so – is this site updated daily, weekly or monthly, for example? One thinks that the CBN owes the nation further precise explanation to assure us that it is not hiding anything, and that our foreign reserves have been lodged safely and insured against losses.
In this regard, the recent assurances by Central Bank Governor Soludo and his bank colleagues Messrs Odoko and Imala about the foreign reserves' safety are welcome, but not sufficiently informative of their precise structuring to allay all fears. For example, it would be necessary to outline precisely not only how they have been diversified in terms of foreign currencies, but their allocations in terms of foreign government bonds and treasury bills, foreign government guaranteed securities, special drawing rights (SDRs), fixed term deposits, call accounts and current accounts - and precisely what added value the foreign asset managers have provided since their engagement.
UNQUOTE
DAILY INDEPENDENT
Mon, 10 Mar 2008 00:53:00
External Reserves Hit US$56.9b – CBN
Oluyinka Akintunde, Asst Business Editor, Abuja
Nigeria's external reserves rose to US$56.88 billion by February 22, 2008, an increase of $1.04 billion or 1.9 per cent over the preceding week's level of $55.84 billion. The external reserves were US$54.63 billion as at February 1.
The Central Bank of Nigeria (CBN), which confirmed this in its Economic Indicators Report for the week-ended February 22, said the current level of reserves could support over 26 months of foreign exchange disbursements.
The increase in the reserves was mainly influenced by the rise in crude oil price and the level of crude oil production in the country.
According to the CBN, the average price of Nigeria 's reference crude, the Bonny Light stood at $100.68 per barrel by Feb 22 as against $97.33 per barrel in the week-ended February 15.
The bank also noted that the country's crude oil production rose to 2.2 million barrels pera day from its previous level of 2.13 million barrels per day.
The CBN reported further decline in the currency in circulation from N880.8 billion in the preceding week to N864.2 billion by February 22.
The latest decline, according to the bank, is attributable to the decrease observed in currency outside the banking system during the period.
The currency in circulation had peaked at N951.3 billion by January 4, only to begin a gradual cutback.
It reported mixed development in the banks' savings and lending rates during the period under review.
"The average interest rate on savings account was 2.92 percent as at February 22, as against 3.33 percent as at February 15.
"The average prime lending rate of banks was 16.20 percent as at February 22, compared with 16.48 percent as at February 15. The average maximum lending rate of banks stood at 18.53 percent as at February 22," the bank said.
The naira maintained its stability against the dollar in the official trading window, the Wholesale Dutch Auction Action (WDAS) during the period.
The naira exchanged for N116.28 to a dollar at the WDAS during the week-ended February 22 as in the preceding week.
On Mon, Nov 29, 2010 at 9:09 PM, Mobolaji ALUKO <alukome@gmail.com> wrote:
Dear All:
QUOTE
General Buhari said investigations by the CPC revealed that the nation's external reserves "which stood at about $64billion, when Yaradua/Jonathan were sworn in now stands at about $30billion; our foreign debt which was reduced by the OBJ's regime from $37.5billion to $3.5billion is now back to over $30billion; and our excess crude which stood at about $20billion is now less than $1billion. Also our domestic debt is over N3.5trillion with our local contractors' at the receiving end.
UNQUOTE
QUOTE
The former Vice President (Atiku) said the recent release by the Central Bank of Nigeria that the nation's foreign reserves fell by a whopping 15 percent from $40.75billion to $34.57bn within a year confirms his earlier warning that the government needs to devote more attention to the economy....Finally, Atiku expressed fears that the federal government has returned Nigeria into the list of major debtor nations. He said latest report that Nigeria's external debt has risen to N25.8billion is another evidence that the economy deserves a better manager......
He quoted Veronica Kalema, who signed the statement on behalf of the Sovereign rating agency that "there is no clear legal basis to determine how excess crude account funds should be shared between the federal, state and local governments and the savings have fallen to less than $500 million from $20 billion in 2007 amid political wrangling."
UNQUOTE
These are serious allegations. If the above is true within less than a four-year period, then some depositions are needed of some of our officials:
- the Finance Minister Aganga
- the Central Bank Director Sanusi Lamido Sanusi
- the President Goodluck Jonathan.
- the Debt Management Office
about:
- our external reserves: May 2007 and November 2010
- our foreign debt*, May 2007 and November 2010
- our excess crude account, May 2007 and November 2010
- our local debt, May 2007 and November 2010
As simple as that - no name calling, no campaign rhetoric!
Bolaji Aluko
* I always worried that paying back our debt when we did would not give us relief, because we would be RIGHT BACK where we were without disciplined leadership. If the new level of debt is true, we are not even into the sixth year yet when we were supposed to get the full relief.
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