As the Central Bank of Nigeria (CBN) concludes arrangement to resume sale of dollar proceeds of international money transfer (IMT) to bureau de change (BDC) operators doing business in Nigeria next week, some manufacturers are calling on the apex bank to put a monitoring mechanism in place to check the activities of BDC, in order to curtail further depreciation of the naira.

Speaking with Sunday Vanguard in Lagos, the Chairman, Toiletries and Cosmestics group of the Manufacturers Association of Nigeria (T&C Group of MAN), Mr. Ikpong Umoh, advised the monetary authority to fund businesses that will add value to the economy, instead of selling dollar to BDC.

He said, “I do not support the issue of CBN selling dollar to BDC. The CBN should tread with caution to protect the naira, because operators of BDC are among those bastardizing our local currency. They are hawking dollar in such a manner that depreciates the naira so much.

For instance, they can get forex from the official window of the apex bank at 306, only to sell at over 490, at a very high rate. You can see the wide margin they make. This clearly shows that the BDC operators in the country also constitute another CBN on their own. The CBN should fund manufacturers to boost productive activities in the country.

On if the CBN is not monitoring activities of the BDC operators adequately at present, he said, “They do not keep a single financial record of their activities. Some of them keep triple records.

This implies that they keep numerous records. So, they show the CBN records that are totally different from the businesses that favour them. The CBN should fund local manufacturers who import raw into the country, to add value to the economy in job creation, instead of BDC operators.

The people BDC are funding now are traders who engage in buying and selling of imported goods, without adding any value to the economy. Some of these traders import goods that can be made locally from China and other countries, to the detriment of local manufacturers in Nigeria.”

Responding to question on how BDC can get forex without the support of the apex bank, he explained, “There are different sources through which dollar comes into the country, so BDC can source from autonomous market and from people coming into the country.

This is importation to prevent further depreciaiton of the local currency, which has greatly lost it value already. The CBN’s monetary policies in 2017 should promote industrial development through manufacturing and not importation”.

http://www.kikiotolu.com/2017/01/manufacturer-cautions-cbn-over-sale-of.html

Lalasticlala Mynd44 seun Dominique

I'm tired of this exchange rate issue. 495 to a dollar. Really!?

I wan just sleep wakeup see say 2019 don
reach,during goodluck time,I drive motor with a/c,I stay in the parlour with a/c,sleep with d ucking a/c on bt wit buhari na n/c(natural condition),person get like 5 side chicks and a permanent room in a hotel 24/7,during gej bt walahi buhari na curse,Things aint funny anymore,make dem just pay buhari all him salary n entitlement make him
give person were go help us out.


Sule lamido 2019.

If the CBN sells to the manufacturers, it will lessen the cost at which they get their raw materials and also lessen the cost of productions but selling to the BDC will only production more expensive as the BDC will even prefer to sell to individual who just want to satisfy personal desires like shopping, travelling , school fees and soon, the BDC will make it scarce and cause hike in the price of dollars.


www.dotunomiyale..com

Corruption everywhere

wet the 5k...ahahaha

True that... It's the BDC's that are actually devaluing the naira.

But, will the selfish and greedy Nigerian government listen?

I'm sure that even the CBN is gaining from the price difference.

This is Nigeria.

true talk from Kpelebe head man.

✈

As long as a poor country continues to believe in using foreign goods that we can't afford then we will remain in this mess...ban importations of certain goods for the good of our manufacturers you will see a certain group make it seem like you have stopped them from breathing.

Disastrous economic team Buhari has...

Fire them all

Selling dollars to BDCs is a short-term palliative as this man remarked. Even that isn't working.

Until we export more than we import, we would always have a low-valued currency.

Nigeria 's economic policy be like

go front small

oya come back

cut ur hand small

oya come back

go front again

cut ur hand again

Make dem come sell all d dollar to me

Ok

change d change

I couldn't agree more with him. BDC does business mostly with traders and those who need dollars for frivolities, this will affect our already crashed Naira that was what stopped CBN selling to the BDC at the first place so I wonder how come they are going back to their vomit again. Even if this dollar has to been sold to the BDC, CBN ought to have provided a special platform to cater for local manufactures which will boost the economy. Just lately my friends were patronising the tailors just because good foreign clothes were scare and expensive too and in that way more money for our tailors and will make them up their game but another side effect to it is that they evade tax and shortchange Nigeria with inaccurate record of businessbut importers can't evade tax and I see that's why government sometimes goes back on their policies. However, there should be a special intervention to make dollar available for our local manufactures in other to boost our economy and expand SMEs.

Dollar is in abundance. Our problem is the policies and the people in control of the dollars.

90% of BDC operators are former cbn directors who have earned over N4m per month as salary, retired with N200m as gratuity, and earn oner N1.5m per month as pension till death. this are the same people still involved in defrauding the country. until buhari makes up his mind to deal decisively with corruption in the civil service he is not going to achieve a dime even if he's given 20yrs. And to even start with why should dollar be sold to BDCs? Who gave black people independence?

vedaxcool:
As long as a poor country continues to believe in using foreign goods that we can't afford then we will remain in this mess...ban importations of certain goods for the good of our manufacturers you will see a certain group make it seem like you have stopped them from breathing.

this I a good idea; but sir should I remind you, they are stages in life, u learn to sit, then crawl, then stand with support, then without support before attempting to walk; nature will not allow u bypass or boycott any of this vital rungs as they are veritable test for maturation ...

My brother ; We do Not have any tangible thing we are manufacturing as a state, Nobody is encouraging it, the people are not inclined towards it obviously for both lack of will and of course the discouraging environment we find ourselves. ; in such a situation , u cannot start hastingly banning everything as that will amount to an economic harakiri ; u are killing yourself ,u will only end up setting a thriving milieu of untold inflation;(an they will be smuggled) also considering the greed inbue in an average blackman They will further capitalize on that... Those were some of the mistakes Buhari has made. So my brother, it behoves of us to be very sagacious and put all in perspective before we act. U Do not just act with linear thought, u should be more encompassing with a broadened horizons of analytical thoughts when acting... We have so many unfinished business back home. Let's get done with them , before we think of the next rung on that ladder

CBN governor is one of the major reasons the economy is suffering. You refuse to give multinational companies dollars to expand their production and create employment opportunity for its citizens but you give BDCs to enrich their pockets. I am sure he gets paid by those BDCs. #sackcbngov.

Let them continoue

now I know why we suffer this hard in Nigeria, it is because we are not getting our priorities right

Na wa o

daniska3yaro:
I wan just sleep wakeup see say 2019 don
reach,during goodluck time,I drive motor with a/c,I stay in the parlour with a/c,sleep with d ucking a/c on bt wit buhari na n/c(natural condition),person get like 5 side chicks and a permanent room in a hotel 24/7,during gej bt walahi buhari na curse,Things aint funny anymore,make dem just pay buhari all him salary n entitlement make him
give person were go help us out.


Sule lamido 2019.

You should be ashamed of yourself about the 5 side chicks shows how irresponsible you are..

Beside What do you do for a living that makes you enjoy such leisure in the past and how did Buhari stop your income?

90% of Nigeria have been living above their income and you are one of them and it's due to corruption..

Real businessmen who make legit money never really complain as all they will do is adjust...


You have been living above your means in the past due to corruption and now that no access to free money anymore you started wailing...

vedaxcool:
As long as a poor country continues to believe in using foreign goods that we can't afford then we will remain in this mess...ban importations of certain goods for the good of our manufacturers you will see a certain group make it seem like you have stopped them from breathing.

@bold bro you can see how a friend of mine wanna bring down heaven yesterday cos of ban on importation of rice, He said Buhari is trying to force us to eat local rice lol i no fit laugh..

CBN please take note of this:

the existence of these BDCs is needless.

the CBN should sell to banks at official rate and let the banks disburse dollars to their customers through their bank accounts at official rate. that can be tracked. that is the only way for the CBN to stop the existence of a so called parallel market or rather black market who only care about their profit at the expense of the national currency.

CBN should sell to banks and banks to their customers through their accounts. that can be monitored. when banks do not have dollars, we know it is not available. no manipulation and hoarding. giving the BDCs only prolongs the problem. when the CBN can make the foreign currencies available to banks to sell officially and at official rate to their customers, then who needs BDCs? of course, this would sound like the BDCs are relevant because there is not enough dollars to satisfy the demand. but truth is the BDCs should source their own currencies away from the CBN. the available dollars given to the BDCs are not helping any matter-not enough to meet demand and not enough to satisfy the greed of the operators. if the banks step in and take up this task and it can be freely obtained (without limits or restrictions) through official channel and at official rate, on first come first serve basis, then at least the greed of the operators is eliminated even though the demand would still be higher than supply for sometime. it will still help things. no manipulation.

First and foremost CBN has been selling dollars to BDC operators since the time of GEJ. Infact it is on record that about 6billion dollars was sold to BDC operators in one year alone during GEJ's tenure.

It is also on record that a lot of these BDC's are fronts for corrupt politicians and civil servants. Someone once showed me documentary evidence linking ownership of about 150 BDCs to a former VP of this country.


The Buhari administration has been trying to sanitize the BDC business but met with stiff resistance. Just like Nigerians want Buhari's head for banning foreign rice yet at the same time we want local producers to excel. My question is if we don't patronise the local producers how will they excel?

A lot of the manufacturers that are also making noise are rent seekers who simply want to get dollars from CBN using over invoiced Form M after which they turn back and sell over 70% of the dollars back to the black market.

Let's stop deceiving over selves. Nigeria will not change for the better but rather get worse until we Nigerians decide to shun all sorts of corrupt greedy practices that undermine the growth of our country.

CBN stopped giving Erisco the tomato paste maker "special dollars" because they discovered that he was round tripping some of the dollars in the black market. The man comes and starts shouting and saying that he will relocate his business not minding the fact that he has committed an offence that is punishable by death in countries like China and Korea. Yet ignorant and gullible Nigerians are abusing the govt without even knowing the full story.

The bad thing is the dollar situation will not abate or get better any soon despite the increase in oil revenue because the pile up of cash for 2019 elections has started and this pile up is currently been done by three sets of people namely....PDP, APC and a new political party in the making.

God bless Nigeria

Honestly is not funny .... where are we heading tooooooo...... why are dey making tins so hard ...hahaha.

you know why am so fed about this country.... as we heard about this news,, we no go hear anything again... it will just go like that ... things will now get worst even more (i pray it won't worst) ... WE NEED TO PROTEST. BUH NO ONE WANTS TO.... DOLLAR IS KILLING US IN THIS COUNTRY WHY? WHY? WHY? ... MY QUESTION IS WHO CAUSE AM ? ?
WHO IS THE CAUSE OF THIS DOLLAR INCREASED ...
THIS DOLLAR WILL NEVER FOR A WEEK STABLE AT ONE PARTICULAR RATE