On 4th August 2016 CBN released a circular (although the circular have been withdraw from CBN website) directing all authorized FOREX dealers to sale FOREX to all intending pilgrims under the arrangement called Pilgrims Travelling Allowance (PTA). From the circular intending pilgrims can purchase minimum of $750 [/b]and maximum of [b]$1,000 [/b]per head at the rate of N197/$1. Meanwhile, the prevailing official rate as at August 4, 2016 was N318/$1 while parallel market rate stood at N380/$1, note the difference between subsidize rate (N197/$1) and official rate is N121/$1 while difference between subsidize rate to parallel market rate of N380/$1 is N183/$1

The total number of pilgrims this year 2016 is [b]165,167, from the data available I deduced that a whooping sum of N7.9billions or N11.9billions respectively (based on the two rate i.e official and parallel rate) would be a subsidy paying by FGN to all the pilgrims assuming they bought maximum of $1,000/pilgrim.

The first three states on the charts are KANO, KADUNA [/b]and SOKOTO[b] pilgrims and subsidy amount accrued to them if they bought at N318/$1, are N703m, N684m and N605m but if they bought it at parallel market rate N380/$1, they will get N1,063b, N1,034, and N915m respectively as subsidize amount. Hmmmmm smiley

Also, on the chart, NORTH WEST [/b]would get N3.8billion or N5.8billions represent[b] 49% of the total exchange rate differences paying off by FGN, followed by NORTH EAST,N1.5b or N2.3b respectively, represent 20% of the total amount subsidy paying off if they get it at N318/$1 and N380/$1. Note total amount paying off stood at N7.9b or N11.9b based on any of the calculated rates.

Am of opinion that government should totally excuse herself from sponsoring/funding/subsiding pilgrims (Christians and Muslim)in whatever forms. We currently having over 2.1m people at various IDP camps in our dear nation, faced with hunger, lack of drinkable waters and shelters,which they could not access. Its time for us as a nation to priorities our goals in order to meet public/masses expectations.

Corrections and constructive criticism are welcome.

God Bless FGN
God Bless Nigerians

See Graph

See Graph

Graph3

Oga no need of this long grammar cos we have agreed they have every right to buy dollar at that rate just like their christians brothers.

darocha1:
Chei
Government of True & Untrue
Government of Claims & Disclaimer
Government of Lies & Deceit
Governmemt of Nigeria and giant of Africa.
A working govt doesmt have time to respond to every twitter story or newspaper headline. The masses who feels the impact will standup for you. infact there wont even be a story talkless of something to counter

Government of inconclusive election

Useless lap dog

Next year it will happen again and ul claim wat again

Useless lap dog

teemy:
this is just like the futures market. a buyer makes a request for forex to be supplied at a certain date while the buyer complies irrespective of the market price on the supply date whether gain or loss. it is a standardized transaction worldwide.

Not true, in the future's market, you have to buy and pay for the contract in order for it to be bidding that, you will supplied at the specified rate on the future date, same is applicable in the option market except that futures deal with commodities and options deals with securities.

Despite the long winding denial by the CBN Governor, he did not mention such thing occurred and more so, the Government does not sell future contracts. What essentially was done is that; since the CBN restricts access to forex in Nigeria, they usually agree with the various pilgrimage organizations in advance on the maximum dollar amount of forex that will be allowed for that year.

The Pilgrimage organizations do not advance the government any money at that stage nor do they buy any contract to lock down the exchange rate, it is a mere agreement on max quantity per individual period!

I am very disappointed with the explanation given by the CBN governor. I remember vividly that the president said no more sponsoring of pilgrims from state funds and it was well applauded.

1. Nigeria is a secular state and should have very little or no involvement with managing religion. Business of government is governance of the people.

2. If foreign schools fees can be removed from official rate by CBN, I dont see why pilgrimage cannot not also be removed.

3. Spending of the available FOREX should go to the real sector of the economy; Areas like Manufacturing and equipment procurement, Farming & utilities which is the current government policy thrust is where all of these available Forex should go to, not some unproductive goose chase.

4. We are only making money for the foreign airline carriers and the countries using Religion to develop their economy through Tourism. THIS IS CAPITAL FLIGHT.... Our common wealth keep disappearing right before our very own eyes.

4. We should stop wasting money on unnecessary and trivial frivolities please.

Adesiji77:

http://punchng.com/pilgrims-didnt-get-forex-subsidised-rate-emefiele/

I am disappointed at what Emefiele said, that agreement had been concluded before now. How about the agreement concluded with manufacturers that was not honoured. I would not surprise to see the herdsmen granted forex at reduced rate to import cows into Nigeria.

gurunlocker:
lies have infected everyone in this government....

I thought you would point out the lie in this report.
Internet blabbers.

SycophanticGoat:
You say something yesterday only to say another today and something else tomorrow.. SmH for this comedy government...

What did the CBN Gov say yesterday regarding this issue. Tell us or you ever remain silent.

nwanna89:
CBN shouldnt be selling dollars to muslim or christian pilgrims in our current economic situation. I think that is everyone's grouse with this matter

Oga its called PTA, Personal Travelling allowance, anyone travelling can request for it. You missed the grouse of the matter.

Seems the Lie Mohammed syndrome has gone round. Rubbish!!!!

wellmax:


Oga its called PTA, Personal Travelling allowance, anyone travelling can request for it. You missed the grouse of the matter.

I dont think its proper for CBN to fund PTA. Better its sourced from the black market. There are more pressing issues in the country

lie lie people, continue okay

megareal:
Since I'm not into Forex, neither am I a pilgrim, I wont comment.

.......but you just did

thanks linearity for pointing out the govt does not sell futures contracts, never knew that. difference here being no upfront payment for the forex but an agreement was met. also basking4me is right about capital flight. any news on the yuan swaps?

so who are to believe now? is it because we all shouted last week that the tune has now changed, please we are not fools here...

If it was futures, then government had no business telling them to give at subsidized rate. they would have treated at the rate then without making noise about it lets see if the futures will apply next year though we pray there wont be recession and that our naira will appreciate. we are not all dullards.

teemy:
this is just like the futures market. a buyer makes a request for forex to be supplied at a certain date while the seller complies irrespective of the market price on the supply date whether gain or loss. it is a standardized transaction worldwide.

SycophanticGoat:
You say something yesterday only to say another today and something else tomorrow.. SmH for this comedy government...

pls give example

You can see that the purveyors of hate will not visit threads like this to learn. Rather, they will rapidly share divisive, inaccurate and hateful information to satisfy their primordial and barbaric desires.

They will not succeed with their evil desires Godwilling.

Quakertellicus1:
The governor stated that the agreement between the apex bank and the pilgrims had been concluded even before the commencement of the implementation of the new flexible foreign exchange policy.

He said the pilgrims had earlier in the year made what he described as “advance payment” for their personal travel allowances, noting that in the current circumstances, the advance payment made was $750 per pilgrim.

The governor explained that the advance payment was made by the pilgrims to the respective state pilgrims’ boards, after which the requests were passed by the states to the national body.

According to him, since the agreement was made in April when the market rate was N197 to a dollar, it would be unethical not to honour it.

Emefiele said refusing to provide foreign exchange to the pilgrims at the N197 per dollar agreed rate would mean that the pilgrims would have to pay the difference between the old and new rates.




Explanation assimilated, and accepted.

Nigerians and misinterpretation. Some people obviously want to start a religious war in this country.

Chief na where dem sell dollar at 197 in April?

Make them dey fool themselves.

ochukwuma15:
Didn't, didn't, didn't.
This government have been all about self denial.

You subsidized forex for pilgrimage but didn't do same to those importing manufacturing goods.

How i wish politicians will start campaign next week
.

And then what......they will monitize and mortgage their for a bag of rice once more for change 2.0

free2ryhme:
Good explanation & quite convincing, but the CBN / FG need not wait
for blacklash for every policy statement before given necessary
explanation or clarification to the general public. At least, reference
to the prior agreement should av been in the memo sent by CBN to Banks on this
isue.

This is what happens when our journalist have refused to be professionals.
They should have confirmed before going to the media. This is why I am in support of the return of DECREE 4

And what kind of business man does business and makes losses... Huge losses at that..and he's proud to say keeping to business principle! ?!! !? .. A foolish and clueless one only, how could they have negotiated their dollars rate around April when they were not ready to embark on the journey at that moment, it was obvious to the blind, audible to the deaf that naira was going to maintain a steady downfall and emefiele who's suppose to know the basics, has now been coerced to bankrupt the nation further, really pitiful.

F000lish man

Adesiji77:

http://punchng.com/pilgrims-didnt-get-forex-subsidised-rate-emefiele/

ojun50:
Oga stop deceiving yr self oga, they hv ask u to come nd tell us lie. U need 100 serious slap

wot of he is telling the truth

abimic:
And what kind of business man does business and makes losses... Huge losses at that..and he's proud to say keeping to business principle! ?!! !? .. A foolish and clueless one only, how could they have negotiated their dollars rate around April when they were not ready to embark on the journey at that moment, it was obvious to the blind, audible to the deaf that naira was going to maintain a steady downfall and emefiele who's suppose to know the basics, has now been coerced to bankrupt the nation further, really pitiful.

wot if dollar had went down, who would ave bin at lose

dracosith:
wot if dollar had went down, who would ave bin at lose

Well, it would be foolhardy to had thought that the worth of naira wouldn't nosedive in comparison with the dollars when most especially realities stare at us in the face. The country isn't faring any better, fight against corruption is even taking its negative toll on the citizenry when reverse should have being, so booking down the dollars would send a negative message down the spines of many. Salvation is personal! FG should stop reducing expenses for these people, not even a time like this when even the ministers are complaining too... . Whoever has money should go see his or her holy land wherever it is or kept at his or her own expenses whether Muslims or Christians.

This Government and Confusion are Twins!

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