Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,163,385 members, 7,853,707 topics. Date: Friday, 07 June 2024 at 10:10 PM

$20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn - Business (3) - Nairaland

Nairaland Forum / Nairaland / General / Business / $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn (26895 Views)

Cheques Can Now Be Paid Into Savings Accounts – CBN / No Deposit For New Accounts: CBN Gives Approval / 20bn Idle In Nigerians’ Domiciliary Accounts –CBN (2) (3) (4)

(1) (2) (3) (4) (5) (Reply) (Go Down)

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Godson1996: 10:53am On Mar 04, 2016
Just imagine how many industries this huge amount will establishe here in Nigeria. This is just what we have with CBN, imagine what are in private volts in houses and some banks.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by ibnzubair(m): 10:54am On Mar 04, 2016
thagift:

how I go take check?
Phone settings >> display >> fonts
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by demola2100: 10:56am On Mar 04, 2016
kachnov:
Okay...set up policies to counter such actions that's why you're the CBN governor.

This country self.... want to be an exporter of foodstuffs? see our signature.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by igwegeorgiano(m): 10:57am On Mar 04, 2016
thunder fire all the crooks wey get those accounts even cbn wey dey yarn nonsense get their own share of d thunder strike. idiotbotic elemtum
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Nobody: 10:59am On Mar 04, 2016
ibnzubair:

Phone settings >> display >> fonts
. see wetin show

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by davide470(m): 10:59am On Mar 04, 2016
haykay2005:

“As I’m talking to you, $20billion is in various domiciliary accounts of individuals. Naira is our currency, why are they keeping the foreign currency? From my experience in the international finance, I have never seen a country where its nationals speculate on its currency,” he said.
This alone is what is killing our currency.

The Greed of Nigerians!

1 Like

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by rusher14: 11:01am On Mar 04, 2016
Chartey:


The govt can't decide how individuals use their own money. They earned their money through hard work. What Seun said is the exact situation of things and I'll advise every reasonable person to save in dollars because the Naira will be eventually devalued. If you like, leave your life savings in Naira and watch it amount to nothing very soon. Emiefele is fighting a lost battle.

Perhaps you don’t understand my post.

The government has 27 billion dollars in relation to 20 billion dollars sitting in private domiciliary accounts in Nigerian banks.

Government is actually thinking of ways of getting these individuals to "invest" this money one way or the other within the local economy.

1 Like

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Mayflowa(m): 11:01am On Mar 04, 2016
donephi:
10% Nigerians controlling the wealth of 90%.


Bro, it is not up to 0.5% of Nigerians than owns that money. Let me help with the figures:@0.5%, you get: 0.005 * 180000000 = 900,000 Nigerians. So the percentage is most likely around 0.005% which amount to 9000 Nigerians. Get the drift?
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by winkmart: 11:03am On Mar 04, 2016
thagift:
se.un what's the meaning of this and how come no declaration for Christians?

kuku type seun
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Ladycloud(f): 11:04am On Mar 04, 2016
God help Nigeria..
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by ibnzubair(m): 11:04am On Mar 04, 2016
thagift:
. see wetin show
I think that's the default then.

thanks all the same
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by bookface: 11:05am On Mar 04, 2016
Just when you think the bar for incompetency couldn't be lower, Emefiele does the unthinkable, he sinks even lower.

Emefiele has lept from one foolish policy to another.

First he banned commercial banks from accepting foreign currency deposits - the result is simple, the banks run out of foreign exchange and can't perform their primary role as an intermediary. The result? the economy suffers.

Second he continued to sell the country's foreign exchange reserves at highly subsidize rates to individuals who sold it to Nigerians at black market rate. He claims "devaluation is evil". The result? Well it didn't make any difference whether he chose devaluation or not, the currency is already de-facto devalued, given that more than 90% of the forex needs are being met at the devalued rate. The only people that benefited from this are the BDCs and bankers who simply bought our foreign reserves from the central bank at 190 and sold it back to us at 350. The economy suffers.

Third he continued a misguided policy of a loose monetary policy by keeping interest rates low and effectively putting a huger amount of Naira in the circulation. Simply economics of demand and supply implies that more Naira is now chasing after few goods. The result? Inflation rises, wages stagnate and the economy suffers.

Fourth, talking about money chasing after few goods - whoever thought restricting foreign imports is the solution to Nigeria's woes must have either skipped economics 101 back in the day or is simply painfully ignorant. Simple maths - if we all have 100 naira to buy Vegetable oil. If foreign Vegetable oil imports are banned, it simply means that there will be shortage of Vegetable oil, and the price of the available ones will simply skyrocket - Even the woman selling Akara will have to increase prices given the higher cost of production she now faces. If prices are rising and wages are not rising, the result is simply a collective decrease in total wealth.

Now, Mr Emefiele is talking about targeting individual's domiciliary account. This is not just foolish, it is unbelievably foolish.

5 Likes

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Babalegba(m): 11:07am On Mar 04, 2016
redcliff:
Whats your business if there is dollars in other peoples accounts? If they wish to keep it i dont see why this should be cbns business. They would not look into their own in house problems they are looking at other folks. Last i checked i did not see where it was a crime to maintain national accounts with foregin currencies.
People like you should be legally hunted for sport.The greedy bastards you are defending are causing havoc to the Nigerian economy

1 Like 1 Share

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by teemy(m): 11:07am On Mar 04, 2016
honest hard working people have kept their money in banks without fear of wrongdoing and it is reported as 'shocking' to some journalists. i wonder o. currency speculation is a business line in itself and the cbn governor should get his basics right.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Xano(m): 11:10am On Mar 04, 2016
HungerBAD:
What? what is the definition of idle?

Is there not a clause in our Banking Laws that stipulates that Monies left after a certain time idly(hoarding) in the Banks, should be reported to the C.B.N who in turn have the powers to convert it into Federal Government Money? Cant the C.B.N name this owners of this $20 Billion? who are these Nigerians sitting on top of this money?

The Government should identify, arrest and prosecute those Nigerians who are guilty for the slide in the value of the naira by embarking on dollar speculation.

This Government is working.

Nice way to spin it.
The domiciliary accounts are legal.

Interesting also, "The Government should identify, arrest and prosecute those Nigerians who are guilty for the slide in the value of the naira by embarking on dollar speculation.", I guess you need education on banking laws. The Deputy said, these individuals chose not to help. Their decision, their money and none of your business.

1 Like

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Nobody: 11:12am On Mar 04, 2016
ibnzubair:

I think that's the default then.

thanks all the same
touchpal 2015
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Xano(m): 11:15am On Mar 04, 2016
HungerBAD:
What? what is the definition of idle?

Is there not a clause in our Banking Laws that stipulates that Monies left after a certain time idly(hoarding) in the Banks, should be reported to the C.B.N who in turn have the powers to convert it into Federal Government Money? Cant the C.B.N name this owners of this $20 Billion? who are these Nigerians sitting on top of this money?

The Government should identify, arrest and prosecute those Nigerians who are guilty for the slide in the value of the naira by embarking on dollar speculation.

This Government is working.

I leave with this quote:

Seun:
Currently, the only way to bypass the FOREX restriction is to operate a domiciliary account and link it to your card and receive deposits from abroad. I guess they will start restricting domiciliary accounts as well soon, after which they will have to forbid Nigerians from opening foreign accounts to bypass that restriction as well. One stupid decision leads to another. God forbid that we should let the naira find its level in order to incentivize Nigerians to earn dollars legally by exporting their goods and services.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Nobody: 11:15am On Mar 04, 2016
ibnzubair:

I think that's the default then.

thanks all the same
touchpal 2015
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by teemy(m): 11:16am On Mar 04, 2016
as designed dom accounts are meant solely for foreign currencies and cbn and its BDCs was the source of inflow of most of that deposit into personal accounts. is it a crime for citizens who have shown better management of resources to keep them here?
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by mistymoon: 11:16am On Mar 04, 2016
haykay2005:
Central Bank Governor Mr. Godwin Emefiele gave a shocking disclosure on Thursday about the massive dollar treasure in Nigerian banks, as the country goes cap in hand begging for foreign loan.

According to him, over $20 billion is sitting pretty in domiciliary accounts of private individuals at a time when the country is facing foreign exchange crisis and is chasing foreign loans, when its citizens could offer the loan.

The figure of idle dollars is $7.8 billion less than the entire national reserve of $27.8 billion, managed by the Central Bank.

Emefiele’s disclosure, via proxy, was made at a session of the joint committee on appropriation of the National Assembly.

Represented by the Deputy Governor in charge of Financial System Surveillance, Mr. Joseph Nnanna, Emefiele said keeping the huge volume of dollars idle had compounded the forex crisis confronting the country.

“As I’m talking to you, $20billion is in various domiciliary accounts of individuals. Naira is our currency, why are they keeping the foreign currency? From my experience in the international finance, I have never seen a country where its nationals speculate on its currency,” he said.


http://thenewsnigeria.com.ng/2016/03/shocking-20-billion-idle-in-banks-as-govt-begs-for-5b-external-loan/

No wonder there is this loud cry to devalue the naira. Thank God PMB understands the intent and has remained firm. Remember, its not you and I who own those dorm account, a huge chunk of that $20 billion surely belong to our greedy and selfish elites, politicians and good-for-nothing political beggars who in the last 2 to 3 decades turned our country to 'their' ATM. Nigeria can attain greatness only if we, her citizens change our ways and attitude to public trust and aspire to do the right thing wherever we find ourselves - be it as teachers, traders, artisans, head of the family, civil servants, service providers, etc. Citizens of the developed countries like America, UK, Germany, Canada etc will not come to salvage us and give us a better country or services, it is our duty to build the country of our dream that future generations would be proud of.

1 Like

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by omozu1(m): 11:20am On Mar 04, 2016
That is why we have a gov. That is why we voted for a change. You people at C B N should come up with a law that will discourage that. Very simple to do.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by redcliff: 11:25am On Mar 04, 2016
ikukuhero:


It's their business because it's part of the CBN's role - monitoring other bank's activities.

To the best of my knowledge, you cannot for instance, get into the UK and walk into a bank demanding to open a Naira account with the intent to stash up Naira which shall sit idly in there. Please correct me if I'm wrong.

the only reasonable thing should be that there should be no account operated denominated in any other currency except for the naira.. Thats simple as that.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Mayflowa(m): 11:28am On Mar 04, 2016
Seun:
Currently, the only way to bypass the FOREX restriction is to operate a domiciliary account and link it to your card and receive deposits from abroad. I guess they will start restricting domiciliary accounts as well soon, after which they will have to forbid Nigerians from opening foreign accounts to bypass that restriction as well. One stupid decision leads to another. God forbid that we should let the naira find its level in order to incentivize Nigerians to earn dollars legally by exporting their goods and services.

These are genuine reasons bro but with Nigerians, trust to expect widespread financial shenanigans. That is the bane of our country such that high level economics doesn't work and Nigeria continue to defy theories that have successfully turn other mundane countries around.

What the CBN refers to are idle funds. These funds have been lying fallow for years on end. This amount is near the country's entire wealth and could stimulate development for Nigerians and the owners if invested. If you receive and keep funds in your domiciliary account with the intention of changing at black market rate at favourable times, you are as well guilty.

As a control during this harsh time, All forex earned should be converted to the Nigeria currency after 3 months. And you will see how our Naira will pick up both at the official window and the black market. The only reason foreign governments don't bother about their BDC, is because, there exist slight margin with the official window. BDCs are not profitable! so you don't find them anywhere except in airport maybe where they fleece travellers. Here BDCs are hugeeee (in Donald Trump's voice) business in which you sell currencies with no products attached. That is the beginning of a dying country.

2 Likes

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by ibnzubair(m): 11:28am On Mar 04, 2016
thagift:

touchpal 2015
Thanks amma check it out
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by chekasforchekas: 11:28am On Mar 04, 2016
HungerBAD:
What? what is the definition of idle?

Is there not a clause in our Banking Laws that stipulates that Monies left after a certain time idly(hoarding) in the Banks, should be reported to the C.B.N who in turn have the powers to convert it into Federal Government Money? Cant the C.B.N name this owners of this $20 Billion? who are these Nigerians sitting on top of this money?

The Government should identify, arrest and prosecute those Nigerians who are guilty for the slide in the value of the naira by embarking on dollar speculation.

This Government is working.
CBN do not have the right to publish names or prosecute any individual because you have a dom account, my dear it's for interntaional transactions not local savings or current accounts. My point.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by redcliff: 11:29am On Mar 04, 2016
AreaFada2:


If that money is all legal, I see no problem. Did they break any CBN rules? I suppose no.

Make Naira stronger & no need for foreign currency.

Thats exactly what I am saying. I dont get the point where they tell us 20 billion dollars is staying idle in Nigerian accounts denominated in dollars. What is the purpose of this news? Are they expecting that because that amount of money is there and given the dollar problems we have at the moment, then they should distribute it back into the economy so as to reduce the scarcity of the dollar?
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by omozu1(m): 11:29am On Mar 04, 2016
mistymoon:

No wonder there is this loud cry to devalue the naira. Thank God PMB understands the intent and has remained firm. Remember, its not you and I who own those dorm account, a huge chunk of that $20 billion surely belong to our greedy and selfish elites, politicians and good-for-nothing political beggars who in the last 2 to 3 decades turned our country to 'their' ATM. Nigeria can attain greatness only if we, her citizens change our ways and attitude to public trust and aspire to do the right thing wherever we find ourselves - be it as teachers, traders, artisans, head of the family, civil servants, service providers, etc. Citizens of the developed countries like America, UK, Germany, Canada etc will not come to salvage us and give us a better country or services, it is our duty to build the country of our dream that future generations would be proud of.
The truth is nigerians will not change. The people will not change all you need to do is change the system for the good of all and the people will have no choice but to change their ways. Just make a law that nobody should have more than 1000 dollars in their account or the gov. Will size it. I tell you the truth you will not see any money in those accounts.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by redcliff: 11:31am On Mar 04, 2016
Fury007:


ignorant minds like yours liked your comment.

Lol. Its funny how you threw jibes at me for no reason without giving arguements against my opinion. I wonder who sounds more ignorant between us both.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Rekeb: 11:32am On Mar 04, 2016
All these argument about the $20billion reminds me of King Solomon and the baby judgement. I just dey siddon look!!!!
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Famofamo: 11:36am On Mar 04, 2016
Femi Falana was right then.
Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Nobody: 11:36am On Mar 04, 2016
The problem in this country is we take a fire brigade approach to problem solving, we always reach for the low hanging fruit, we are reactionary, rather than pro-active.

1) it is not illegal to hold foreign exchnage

2) citizens preference for holding foreign exchange is a reflection of a lack of confidence in the Naira and events have proven the citizens right.


3) Every citizen has a right and a duty to himself to to protect himself financially through legal means.


4) If these monies are legally acquired, it's not government's business what a citizen does with his money. If some of these monies are illegally acquired, then it's actually in the govt's interest that the money is stored locally because it means they can get at it easier.


5) Failure of past govts and lack of confidence in the future is the reason why people scramble for the dollar. Govt should focus on regaining confidence in the govt, the economy and by extension the Naira.


6) victimizing people for being smart with their money will only cause more capital flight...people will still seek dollars but instead store their money in foreign banks

7) if govt does it's job (for instance fix refineries, stop the import of PMS which drains so much FX) the Naira will strengthen, people will scramble to convert their money to Naira

2 Likes

Re: $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn by Faith111: 11:42am On Mar 04, 2016
HungerBAD:
What? what is the definition of idle?

Is there not a clause in our Banking Laws that stipulates that Monies left after a certain time idly(hoarding) in the Banks, should be reported to the C.B.N who in turn have the powers to convert it into Federal Government Money? Cant the C.B.N name this owners of this $20 Billion? who are these Nigerians sitting on top of this money?

The Government should identify, arrest and prosecute those Nigerians who are guilty for the slide in the value of the naira by embarking on dollar speculation.

This Government is working.

You are very funny...Who told you it is a crime to safe your money in foreign currency?
People who are economically inclined do that to retain the value of their money when the value of the Naira is unstable and depreciating.
Can you imagine what will happen to their cash in Naira if our currency is devalued...
If you got some millions in your Naira account you will understand what this concept means.
The CBN governor should stop starring at its Citizens pockets but rather look inwards and come up with policies to strengthen our Naira...
Does he want to say that he doesn't have some dollar lying fallow in his domi accnt?

(1) (2) (3) (4) (5) (Reply)

Danfo Business-is It Worth Investing On? / Susan Elumelu's 90th Birthday Party: Tony Elumelu's Mother Marks Birthday (Photo / Aig-Imoukhuede Steps In As Access Holdings Chairman 10 Years After Exit As CEO

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 89
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.