No One Heard About Nigeria In 2008, When Oil Prices Fell From 148 To $38 A Barrel - Dr. Ngozi Okonjo-Iweala

Thursday, April 07, 2016

Ngozi Okonjo-Iweala was the guest of the World at the Grenoble geopolitical Festival which took place from 16 to 19 March. 

Prof. Okonjo Iweala

She served two governments as Minister of Finance from 2003 to 2006, under President Olusegun Obasanjo, then, from 2011 to 2015, under the presidency of Goodluck Jonathan. Between these two positions, she was Executive Director of the World Bank. 

She now has a consulting business with Lazard and chairs the board of the Global Alliance for Vaccines and Immunization (GAVI) based in Geneva.

This interview is excerpted from her speech in the auditorium of the Festival of Grenoble.

Will Africa be more selfish? Taxing imports more to develop domestic trade?

Africa does not trade enough with herself, that's obvious. But this issue is often dealt with logistical issues. 

It's very important to remove all these barriers for goods, capital and persons so they can circulate freely. For a truck no longer forced to stop as many times on the road between Abidjan and Lagos, between Nairobi and Kigali. 

But it is equally important to know what you want to exchange. 

If we produced all the same commodity, the same grains, what are we going to sell and buy? African countries must begin to specialize in industry, assembly or channels of food values.

Some economists are very concerned for Nigeria, which could greatly suffer from the fall in oil prices. Others say the contrary, that its economy is strong enough to turn the corner...

Both are right. But one thing saddens me. When I was finance minister the first time, the volatility of oil prices, and therefore state resources, cost at least three points of growth in the country. 

We then established a stabilization mechanism and opened an account for the oil surplus. 

Who posted up to 22 billion. 

In 2008, when prices fell from 148 to $ 38 a barrel, no one has heard of Nigeria because the country has been able to tap into this fund. And that, I am very proud. 

When I returned to the department in 2011, he remained only 4 billion on this account while the price of oil was very high! I tried again to put money aside. 

The President agreed, but the governors have not accepted. I suffered a lot of attacks from them and now that the country would really need this account, these same people accuse me of not having saved! 

If Nigeria had been more careful, he would not be here today. It hurts me. 

We have the mechanism, we had the experience, but we were prevented to act.