Demmocrats:


To me there is no safe way to invest this days, the best way is to convert your wealth by buying gold instead of raw cash that doesn't have value much.

ejibaba:


What do you know is my opinion about TSA? I wrote from experience so I know what I wrote. If you doubt me find out the rate of Treasury bills before TSA implementation and after implementation, or wait am working on a research paper on it now so I can direct you to the paper when published or do your own research.

But my point is what do you think is my opinion about TSA?

Aviero:

Lalasticlala, you know this guy is right. This thread is our FP thread. F*cck that shiit! Nairalanders ti take over. Every f**king sentence is a hit.. from the banker jumping out of the window, to oil and gas. ko ni da fun iya anybody. *slams phone* *middle finger*

mickey45:


You know how to do that?
Buy Gold profitably?

1freshdude:


While your opinion about the TSA implementation been the reason for this hullabaloo may be right, its just a proximate cause of the problem.
The ultimate cause is the Dutch disease.
This term was coined by the Economist 1977 to describe the woes of the Dutch economy. And it can be defined as the negative impact on an economy of commodity that gives rise to a sharp inflow of foreign currency, such as the discovery of large oil reserves. The currency inflows lead to currency appreciation, making the country's other products less price competitive on the export market and in turn encouraging sole focus on that single commodity, leaving the other sectors of the economy undeveloped.

ejibaba:


I never disputed any economic theory to explaining this problem. However, I state confidently that the banking problems did not start as a result of the drop in oil prices. The CBN before the decline in oil prices did a review of cash reserve ratio of government funds increasing it upward (75%) and most banks couldn't cope with the increase as it affected them greatly even when the prices of oil was still high. This prompted an eventual reduction considering it affects on banks, which was a template that was presented to the previous government to jettisoned the idea as it result in mass sack that is on already. There is no fund as sweet as government fund as it is more stable than oil money ask any marketer in the bank. Now, no government money to loan to government, no government money to recycle, no government money to charge for transaction.

Most of this banks charge government agencies COT and other charges but they won't even dare it on oil company's cos what they want is the money to enjoy spread but in government money then enjoy both float and spread.

I know and understand the various economic theories and views on this issue but this is my own practical perspective from experience in working in retail focused and public sector focus era of banking.

1freshdude:


I agree with you bro. The falling oil price will compound their woes.

Sibrah:
The easy money presented by booming oil prices had rendered Nigerian banker so lazy they will have no way out but to face the reality of competitive economics this year. MFB and CB could easily give loan to workers at 24-30% because the 'workers' were having it easy hitherto. Ideally, the CB were suppose to be driving the core of the economy with low interest lending but have derailed so much because of the easy money virtually poking their nose and begging to be made.
I have said before, this is the time to start anything that leads to export-ready produces. If as a honey farmer or yam seller, for every $1000 you made before now you had 1000 X N165/$ to spend then by now you have some 1000 X N250/$ plus to spend. Our problem is lack of competitiveness in exportation caused by years of easy oil money. The easy oil money sure held us back for decades like a curse.

theV0ice:
Food for thought



http://www.vanguardngr.com/2016/01/banking-blues-in-2016/

ejibaba:


What do you know is my opinion about TSA? I wrote from experience so I know what I wrote. If you doubt me find out the rate of Treasury bills before TSA implementation and after implementation, or wait am working on a research paper on it now so I can direct you to the paper when published or do your own research.

But my point is what do you think is my opinion about TSA?

jpphilips:


High interest rate on Treasury bills rendered bankers more useless than the oil boom, the writer only made a speculation.
The bankers books are there to see where the highest money was invested, It has never been oil and gas, NEVER!!

Objektive:
SELECTIVE AMNESIA OP............................HAVE YOU FORGOTTEN THE EFFECT OF SANUSI IN ALL THESE?

WHAT SANUSI DID WAS TO UNDO THE WORK OF SOLUDO AND INCREASE JOB LOSES AND THE OPPOSITION WAS CLAPPING FOR HIM BECAUSE IT SUITED THEM.............

PLEASE ERASE SOLUDO AND WRITE SANUSI.

SAI BABA

Sibrah:

It has always been, at least indirectly. Most loans given out are for housing, cars etc and were repaid with easy money from oil earnings. Let's see how many people rush to take loan at 24-30% interest rate with govt struggling to pay salaries. The easy money is taking a short break for now I tell you.

Bobbysworld28:

There is no direct correlation btwn Tsa and treasury bills.
I wonder where u r getting ur info from

Bobbysworld28:

There is no direct correlation btwn Tsa and treasury bills.
I wonder where u r getting ur info from

Bobbysworld28:

There is no direct correlation btwn Tsa and treasury bills.
I wonder where u r getting ur info from

jpphilips:


Most of the money Banks were investing in TB were govt idle funds, TSA ensured those good days never returned.
Also TB is an OMO policy designed to mop up excess liquidity in the Economy, by implementing the TSA, the mop up was exponential hence no need to give chaps attractive interest rates on TB.

Sibrah:
The easy money presented by booming oil prices had rendered Nigerian banker so lazy they will have no way out but to face the reality of competitive economics this year. MFB and CB could easily give loan to workers at 24-30% because the 'workers' were having it easy hitherto. Ideally, the CB were suppose to be driving the core of the economy with low interest lending but have derailed so much because of the easy money virtually poking their nose and begging to be made.
I have said before, this is the time to start anything that leads to export-ready produces. If as a honey farmer or yam seller, for every $1000 you made before now you had 1000 X N165/$ to spend then by now you have some 1000 X N250/$ plus to spend. Our problem is lack of competitiveness in exportation caused by years of easy oil money. The easy oil money sure held us back for decades like a curse.

Aviero:

Lalasticlala, you know this guy is right. This thread is our FP thread. F*cck that shiit! Nairalanders ti take over. Every f**king sentence is a hit.. from the banker jumping out of the window, to oil and gas. ko ni da fun iya anybody. *slams phone* *middle finger*