mykalls:
Anyone who still banks with GTB is making a huge mistake. I took off over a year ago when their charges became unbearable. I also pulled my wife out of the chain GTB was putting on her. Today we are very happy we took that decision.

Truth234:


Madam, banks dropped card transactions because there was no liquidity to offset those payments. Deposit money bank through the CBN instituted withdrawal limit to curtail excesses of certain people's activities impacting forex liquidity after global oil prices reached a record low of 26/barrel in February 2016 and our foreign reserves plunged.

If you look at GTB 2016 statement, most of their profits came from the high foreign exchange rate, it was their abuse that led to the restriction last year and of course massive profit declaration. Now, take a look at this first quarter statement, most of the profits comes from interest, why? because the naira has improved. This is our argument that the new forex policy is working and needs time.

It is wrong to assess current situation based on past occurrence. The directive released by the CBN on their website is different from what you were told by your bank. I repeat those banks need to be checked, they not doing anything rather profiting from the system and exploiting people as explained above. Good morning.

feldido:
Thieves... After all the Fraudulent Charges.
GTB makes N117(N100 - interbank, N5-VAT, and N4 each for N100, N5, and the main Transaction alert =N12) for Each Transfer one makes. I'm being charged as high as N1, 800 monthly

Johnrake69:


Bros it makes no sense and certainly not in this era where every information is online. I had to disable it.

Truth234:
Most of the profits come from the interest generated, the high-interest rate is killing small businesses. Until our monetary and fiscal policy are structured to aid ease of doing business, new job creation we continue to suffer.

It is not low tax-rate that is hurting revenue generation but lack of job creation and high poverty rate. The FG in its NERGP stated the need to up tax to gdp ratio to 15% from the current 6%, this is counter-productive in a nation where unemployment is high.

Donald Trump just released the highest tax cut plan in the history of the U.S, cutting federal tax to 15% for businesses to further aid productivity and achieve 3% economic growth rate target at 4.7 percent unemployment (full employment). Yet, in a nation where unemployment is 13.9% and youth unemployment/underemployment currently stood at 45.7%, the government is looking to raise tax with interest rate at 16%.

These commercial banks will continue to profit from these lapses, both at the capital market and from the masses.

chloride6:


Please i beg to differ, 15% self, in my opinion, is small. We have to pay taxes to grow. Where in a recession or not. What government needs to do create a framework that forces the informal sector to pay taxes. Nigeria has too large an informal sector, that do not have a tax paying culture.

Trump's plan is nonsense and even at that we are grossly underdeveloped economy. We need taxes.

modath:


989900 , Truth234

In you gentlemen's sustained position about my negative/pessimistic view concerning the CBN's unstable & market destablizing FX policies, I believe I have to bring a recent development to your notices...

I hope you both are aware that CBN has instructed GTB & Access banks do not process card transactions at less than 375 , FCMB then decided to add extra 5 naira for the sheer hell of it..... It used to be 320-325...

Care to explain why that is?

Truth234:
Most of the profits come from the interest generated, the high-interest rate is killing small businesses. Until our monetary and fiscal policy are structured to aid ease of doing business, new job creation we continue to suffer.

It is not low tax-rate that is hurting revenue generation but lack of job creation and high poverty rate. The FG in its NERGP stated the need to up tax to gdp ratio to 15% from the current 6%, this is counter-productive in a nation where unemployment is high.

Donald Trump just released the highest tax cut plan in the history of the U.S, cutting federal tax to 15% for businesses to further aid productivity and achieve 3% economic growth rate target at 4.7 percent unemployment (full employment). Yet, in a nation where unemployment is 13.9% and youth unemployment/underemployment currently stood at 45.7%, the government is looking to raise tax with interest rate at 16%.

These commercial banks will continue to profit from these lapses, both at the capital market and from the masses.

DjSwaga:
We havr to pay tax to grow?

Well i beg to differ

Tax isnt d only or cant be our major source of growth. Tax is good but exhorbitant rates will have negative effects on the common man.

Oil and agriculture are still our best options

sshalom:
They should create a special unit in the bank to fund entrepreneurs in Nigeria. This will lead to wealth creation and also increase their bottom line in the long run.

989900:


That was shocking (GTB)!

Access was 325 on the 24th of April, and I guess UBA was in that range too.


The blame lies squarely with the CBN.

P.S. OTOH, if the limits on those cards are increased to say, $500/month, since rates have more or less merged with the parallel market and BTA rates, it could be a good thing in disguise: less pressure on the BDCs and Black market and less racketeering: stronger Naira: better rates ( probably all rates converging at give or take, around N350 for now).