Nigerian gov't denies squandering 67 bln USD in foreign reserves

ABUJA, Jan. 27 (Xinhua) -- The Nigerian government has denied allegations by a former World Bank vice-president for Africa that it squandered 67 billion U.S. dollars in foreign reserves of the West African country.

Minister of Information Lebaran Maku made the denial at a news conference in the capital Abuja on Sunday.

The former World Bank official, Oby Ezekwesili, also a former minister of education in Nigeria, made the allegations in a convocation lecture she delivered at the University of Nigeria in the southern state of Enugu.

Maku said the claims of Ezekwesili were outlandish.

According to him, as a former minister in Nigeria, her statement betrays a surprisingly limited understanding of government's finances considering the high positions she held in Nigeria.

The minister said the government found it necessary to respond to her claims as Nigerians might be susceptible to believe her because of the positions she held in Nigeria and at the World Bank.

Maku told reporters that the statement by the former World Bank vice-president that the governments of late president Umaru Yar' Adua and current President Goodluck Jonathan have squandered 67 billion dollars in reserves, including 45 billion dollars in external reserves, 22 billion dollars in Excess Crude Accounts left by the Obasanjo administration at the end of May 2007, is factually incorrect.

The information minister said after the administration of Obasanjo, the reserves rose from 43.13 billion dollars in May 2007 to 62 billion dollars in September 2008.

He said when oil prices fell from 147 dollars per barrel to 31. 7 dollars in September 2011 and against the backdrop of the global

financial crisis, the central bank had to intervene to defend the value of the Nigerian currency naira.

Maku added that the excess crude savings, a component of the reserves, was then used to stimulate the economy to the tune of about 1 billion dollars and that Nigeria had no need for foreign assistance in combating the meltdown.

He told reporters that it was fallacious to say that the government dipped its hands into the foreign reserves as the government could not do that.

The minister acknowledged the numerous challenges facing the country, but stressed that the government is working tirelessly to solve the problems.

We recommend:
Protesters call for pullout of U.S. troops	Heavy snowfall hits London, Britain	Obama and First Lady dance during Inaugural ball
Rally held to welcome Grand Rabbi in Jerusalem	Unforgettable moments you cannot miss in January	The world in photos(2013.1.13-1.20)