The former Minister of Finance, Dr Ngozi Okonjo-Iweala, on Tuesday, stated the administration of former President Goodluck Jonathan failed to save Nigeria’s huge earnings from oil between 2011 and 2015 due to a lack of political will.

The former Minister stated this while speaking at George Washington University, Washingto DC, on the topic “inequality, growth and resilience.”

She noted that Nigeria was able to save $22 billion under President Olusegun Obasanjo, thus saving the country from economic meltdown in 2009.

Nigeria is currently facing economic difficulties, which according to the former Minister was caused by the inability of the Jonathan administration to save for a rainy day.

Okonjo-Iweala, who served as finance Minister under the Jonathan and Obasanjo administration, stated that: “We tried it in Nigeria, we put in an oil price based fiscal rule in 2004 and it worked very well.”

“We saved $22 billion because the political will to do it was there. And when the 2008 /2009 crisis came, we were able to draw on those savings precisely to issue about a 5 per cent of GDP fiscal stimulus to the economy and we never had to come to the bank or the fund.”

“This time around and this is the key now, you need not only to have the instrument but you also need the political will. In my second time as a finance minister, from 2011 to 2015, we had the instrument, we had the means, we had done it before, but zero political will.”

“So we were not able to save when we should have. That is why you find that Nigeria is now in the situation it is in. Along with so many other countries.”

Speaking on the need to have political will and stop political manipulation, Okonjo-Iweala stated that: “That is the question that I ask, what do we need to do to these countries to save over a period of long accelerated growth.”

“We need to devise mechanisms not just that are good technically but find a way to either embed them in the constitution or find a way to separate them from the political manipulation so that these countries can survive over time.”

“To build resilience, African countries need tools, mechanisms and it is doable and we need to interrogate ourselves why we have not done it.”

The former minister noted that manufacturing is essential for the growth of African countries.

“I do not believe that we can be resilient, except if we can encourage manufacturing even on the goods we consume, services, entertainment industry, agriculture.”

“I think these are the kinds of questions that policy makers struggle with on a daily basis and that is what we are going to answer to get resilience.”

“If we don’t get these mechanisms, we politicise them, find ways to transform the base of the economy and create jobs including in manufacturing, I believe we are going to go into this looming deceleration that is being talked about.”