The Federal Government, yesterday, responded to the allegations made by former President Olusegun Obasanjo against the administration of President Goodluck Jonathan, including an alleged squandering of the nation’s $55 billion foreign reserve.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala explained that the former President got it wrong, stating that former President Obasanjo left a gross reserve of $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 Federal Government’s savings in May 2007.

It stated that the reserve peaked at $62 billion in September 2008 under Yar’Adua when crude prices rose to $147 per barrel before falling to $31.7 billion in September 2011 as the Central Bank of Nigeria had to use much of it to defend the Naira, following the 2008-2009 global financial meltdown.

The ministry maintained that President Jonathan never in any way squandered the nation’s reserves, but appropriately utilised it in the course of normal transactions required for the development of the Nigerian economy.

-Vanguard