The former Minister of Finance, Ngozi Okonjo-Iweala, said this yesterday while speaking on “inequality, growth and resilience,” at George Washington University. Her words: “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% 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.”