One hacktivist group should help us hack the CBN database and redistribute the money to all Nigerians. Bashing ATM's at street corners so money spills uncontrollably from it.

henryobinna:
my brother that feeding program is the greatest scam of recent memory, I don't know what they're trying to say. Feeding school children when they're not allowed to come to school. Who are they feeing then?

Bros, welcome to Nigeria, the land of "Private enterprise, state and federally backed organization of SCAMS"

Dasuks:


Their demand for forex (usd etc),to handle their transactions( inputs purchases, imports etc), on the parallel market is pulling down the value of the naira. They're demanding for forex against the naira that they are selling. Normal supply/demand dynamic. These guys also have to repatriate capital abroad to their principals or their accounts for other uses and purposes. More so, when they re of a multinational character.

Thing is, since CBN is in charge of monetary policy and defending the currency in line with the govt's prevailing policies, those activities complicate their assignment. Cos while the official market might be maintaining a particular rate, ppl on the parallel ones have a different dynamic at play with the heavy demand and def fewer dollars to obtain.

On the flip side, these guys have to readily conduct business. And ofc global business today doesn't really factor in waiting to see ur CBN forex quota and what have you. CBN themselves have limited forex that they distribute/allocate across banks, importers/firms etc. Can the CBN comfortably/seamlessly supply forex needs for their businesses?.... question to ask.

To see how determined some of them are, they are even losing money on their earned naira but still continue just cos they want to evacuate their monies for whatever purpose. I mean that's why u have the IMF talking about a free floating naira. To give less to the vagaries of economic happenstance and provide some structure.

This might expose the naira's real value which is gonna be a good or bad thing for Naija... depends on how we play it.

A voice of reason. Emefiele sounds like someone who has a MBA in Fashion design. You can't fight the market and win.

Oil prices have collapsed and with it, dollar inflows. You can't price the Naira at same rate it was at $55/barrels as against $35 today. Something must give. The CBN's refusal to see reason as led to the Naira becoming overvalued and leading to the draining of the foreign reserves from $45 to $38 in just 4 months.

The only option is to allow the Naira float and find its true value. The government must end the multiple foreign exchange market. as It screams quackery. Emefiele must stop blaming businessmen for what really are his failings.

aminulive:
POLITICSNIGERIA.COM EXCLUSIVE

As the Central Bank of Nigeria (CBN) struggles to stabilise the currency exchange rate, its Governor, Godwin Emefiele, has accused some local and foreign investors of buying dollars from the parallel market, popularly referred to as 'black market'.

A dollar was sold for N460 at the parallel market on Wednesday, which is higher than the interbank rate of N361 to a dollar. More so, the dwindling oil prices caused by the Coronavirus pandemic have greatly affected the country's economy and have reduced the dollars in circulation.

The situation was also compounded by the suspension of sales of foreign exchange to Bureau de Change operators by the CBN.

POLITICS NIGERIA reports that the investor and exporters window is also[b] badly affected by the liquidity crisis in the foreign exchange market.[/b]

However, since the demand for dollars by importers, foreign investors in the debt market who want to repatriate their funds, is higher, many have resorted to buying from the parallel market, which takes its toll on the country’s economy.

The Virtual Meeting

In video footage exclusively obtained by POLITICS NIGERIA, the apex bank's Governor warned the investors against buying dollars from the parallel market.

He spoke at a virtual meeting held sometime in May 2020, with some foreign and local investors including Africa's richest man, Aliko Dangote; Huawei, a telecommunications company and Herbert Wigwe, the managing director of Access bank group.

Mr Emefiele said: "We've seen your account already but we are appealing to you to stop and do what is right and what is legal so that Nigeria can be a better place for you to live in."

"Don't go into illegal business. Do your business legally and make your money. I repeat and I know it. I know some of you are involved. Stop now! By you going to the parallel market, you are helping to overheat that market."

He also spoke about the implications, which is losing their earnings as a result of overheating the market.

"Not only that you'll lose money (because you would have bought at a price that is not realistic)... I can tell you that you are going to lose money."

"We are seeing some of those transactions and I feel I need to call you guys for this meeting let us talk. Don't overheat the market by sounding desperate and buying dollars at those exorbitant prices."

He then promised that the apex bank will provide more liquidity for the investors to stop patronising the parallel market.

"We have taken note of some of you- on what you need. Go ahead and do your business. Nothing will stop your forward. Your forward will be at the committed price. We are going to provide more liquidity to the market so that you people can stop going to the parallel market. Don't go there!" he said.

Watch the Videos below;


https://www.youtube.com/watch?v=3n4i9SlenyA


https://www.youtube.com/watch?v=JmSJ-3p_m-4

SOURCE: https://politicsnigeria.com/exclusive-emefiele-caught-on-tape-accusing-nigerian-business-moguls-of-patronising-illegal-markets/

fairfora:
Sadly, this post would not draw much crowd whereas, this is what affects everyone in the country. Don't mind them. Tomorrow they'd come and be bragging that they're the richest people in Africa, after they must have shortchanged the legitimate SMEs who are struggling to survive. We have been approaching our banks since early april for forex. We have explored all the opportunities, ranging from Investors and importers windows, SMEs retail, SMEs wholesale, to Form Q windows but all have proved ineffective. You can't send cash fx deposited in your acct overseas. It has to be inflows...meaning only fx deposited into your account by transfers only( mainly from abroad or from within same bank internally) can be transferred to buy goods abroad. Bank directors are complicit in this mess. They divert what is meant for the SMEs and sell to the highest bidders like dangote. I don't want to hear anyone calling dangote the richest man again because he took hold of opportunities meant for hundreds of thousands of SMEs nationwide and utilized it solely, for over a decade.

I can count how many times we have had our LC transactions approved...na only dem and tell me how they wouldn't make headway? Yet our banks would keep sending us emails that forex are available to go round. You need rice for instance and everybody else needs rice but you need forex to order rice. You approach the bank and they tell you no forex, after meeting all the requirements. If you had the opportunity to buy the rice and bring it into Nigeria in a vessel in a single deal, you're made for life. But once somebody like dangote places a call through to all commercial bank directors, they'd mop up all the available dollars and give to him, thereby deprive the SMEs who also want to rise and become somebody the opportunity. Otedola, tony elumelu, jim Ovia and the rest are all players in this game of selfishness. Tell me why they wouldn't call them rich after all the opportunities available to others must have been mopped up by them? And if SMEs struggle to get their dollars at the back market to order their goods, they wouldn't be able to compete with the likes of dangote because they'd sell at a higher price...dangote would get in volume and at good rates from bank directors and bdcs ...no be wetin you get, na im you go sell?

Such sharp practices can only be allowed in Nigeria. Emefiele can't say he's also clean in this deal cos that's where they make money too. That's why SMEs are finding it difficult to thrive in Nigeria. Go to America, SMEs drive their economy. You dare not try this shiit over there except you want to spend the test of your life in a correctional facility. Useless govt, useless system we've got.

It is amazing you condemn the businessmen without discerning Emefiele's double speak. The businessmen buying forex at insane prices are desperate to repatriate funds lest it adversely affects their business. Please take note of my highlighted bits

The so-called "sharp practices" are caused and fuelled by a liquidity shortage. This is simply giving a dog a bad name in order to hang it.

I do some small online business and my domain host temporarily cut off my web hosting when my bill was due. The automatic payment didn't go through because of a glitch but eventually did. I complained to my WebHost and they apologized and even gave me a 5 pounds credit to my next monthly payment. (I pay monthly).

Now, if I am desperate not to run foul of my WebHost, what of those carrying out millions of dollars of business yearly? These guys have signed contracts. They also have businesses to run and workers to pay.

Emefiele had admitted there is a liquidity shortage (meaning it is not able to meet demand). With the same breath, he is demanding that buyers who can't get enough dollars not go to the black market. Does that make sense to you?

Your child is in a foreign university and his fees are due. You approach the banks for forex and you're denied, complaining of liquidity shortage. Will you now shut your eyes and say if they have no dollars, I will accept it like that or you find another source and buy? How much more your business!

The prime problem isn't really Emefiele but Buhari. Buhari has a passionate hatred of devaluation. He infamously fixed the Naira at 197 upon assumption of office in May 2015. He, however, could not fix the black market rate and that fell to 300 by January 2016. the Naira hit 300. This was the fastest decline seen since 1993 when Babangida's loose fiscal policies made the Naira a prime candidate for hefty perennial depreciations against notable currencies.

Imagine Nigeria was earning $10b a month when the oil price was $55 and now earning $5b with an oil price of $35. If the CBN was supplying $10b a month previously and it now drops to $5b, do you expect the rate to remain that same? Buhari expects so.

About Dangote's exploitation of the forex market, blame it entirely on the refusal to allow market forces to work. When people can't get enough forex at the official market, they turn to the black market and this puts pressure on it. A massive spread will open between the official and black market rate. This should always be prevented. Sanusi said the differential between the official and black market rate should not be more than 3%. Anything more will cause round tripping and other distortions in the economy.

When Soludo came into office, he met the official rate at 120 and the black market at 150. Since the days of Babangida to then, there had always been big gaps between the 2. He was determined to merge the 2 rates and he did by further liberalizing the market. He started selling forex to Bureau De Change which brought forex close to the common man and the 2 rates almost converged. It was so good that those in the Central Bank complained that people were no longer coming to buy forex from them.

Can Dangote exploit such a system? No. Why? There is no system to exploit! There is no gap to exploit. The gap created by fixing the Naira and the Naira's subsequent crash at the black market and the huge disparity that it created was what was exploited. Who created that gap?

Truth be told, Dangote isn't at fault. Projects like the refinery are usually sourced from banks abroad. He can get all the dollars from overseas banks. If he was to obtain anything locally, it would probably be no more than 10% of the needed capital. He saw an opportunity and took advantage of it. Any businessman would. He was feted like royalty.

grandstar:




It is amazing you condemn the businessmen without discerning Emefiele's double speak. The businessmen buying forex at insane prices are desperate to repatriate funds lest it adversely affects their business. Please take note of my highlighted bits

The so-called "sharp practices" are caused and fuelled by a liquidity shortage. This is simply giving a dog a bad name in order to hang it.

I do some small online business and my domain host temporarily cut off my web hosting when my bill was due. The automatic payment didn't go through because of a glitch but eventually did. I complained to my WebHost and they apologized and even gave me a 5 pounds credit to my next monthly payment. (I pay monthly).

Now, if I am desperate not to run foul of my WebHost, what of those carrying out millions of dollars of business yearly? These guys have signed contracts. They also have businesses to run and workers to pay.

Emefiele had admitted there is a liquidity shortage (meaning it is not able to meet demand). With the same breath, he is demanding that buyers who can't get enough dollars not go to the black market. Does that make sense to you?

Your child is in a foreign university and his fees are due. You approach the banks for forex and you're denied, complaining of liquidity shortage. Will you now shut your eyes and say if they have no dollars, I will accept it like that or you find another source and buy? How much more your business!

The prime problem isn't really Emefiele but Buhari. Buhari has a passionate hatred of devaluation. He infamously fixed the Naira at 197 upon assumption of office in May 2015. He, however, could not fix the black market rate and that fell to 300 by January 2016. the Naira hit 300. This was the fastest decline seen since 1993 when Babangida's loose fiscal policies made the Naira a prime candidate for hefty perennial depreciations against notable currencies.

Imagine Nigeria was earning $10b a month when the oil price was $55 and now earning $5b with an oil price of $35. If the CBN was supplying $10b a month previously and it now drops to $5b, do you expect the rate to remain that same? Buhari expects so.

About Dangote's exploitation of the forex market, blame it entirely on the refusal to allow market forces to work. When people can't get enough forex at the official market, they turn to the black market and this puts pressure on it. A massive spread will open between the official and black market rate. This should always be prevented. Sanusi said the differential between the official and black market rate should not be more than 3%. Anything more will cause round tripping and other distortions in the economy.

When Soludo came into office, he met the official rate at 120 and the black market at 150. Since the days of Babangida to then, there had always been big gaps between the 2. He was determined to merge the 2 rates and he did by further liberalizing the market. He started selling forex to Bureau De Change which brought forex close to the common man and the 2 rates almost converged. It was so good that those in the Central Bank complained that people were no longer coming to buy forex from them.

Can Dangote exploit such a system? No. Why? There is no system to exploit! There is no gap to exploit. The gap created by fixing the Naira and the Naira's subsequent crash at the black market and the huge disparity that it created was what was exploited. Who created that gap?

Truth be told, Dangote isn't at fault. Projects like the refinery are usually sourced from banks abroad. He can get all the dollars from overseas banks. If he was to obtain anything locally, it would probably be no more than 10% of the needed capital. He saw an opportunity and took advantage of it. Any businessman would. He was feted like royalty.

I never exonerated emefiele in my post because I'm also still feeling the heat. I only harped on the sharp practices exhibited by those guys which didn't share today. It's an age long thing. Banks' directors discate who gets what and the highest bidders take it all, leaving crumbs for the SMEs to share. You've raised some valid points which have brought us where we are today...the Buhari's policies et al. On payment of school fees abroad, that has always been unhindered with the advent of the CBN's form Q. We always recourse to this too, on petty transactions when the main windows are closed by the CBN. With the form q, you could actually get up to 20kUSD in a quarter and all thanks do that without sentiments.