henryobinna:
I'm glad you took your time to write this at least we won't have silly people insinuating absolute madness. The next problem is, does the CBN have enough dollars to give? If say the CBN starts selling as many dollars as needed by actual businesses, for how long would the CBN sell this dollar before it runs out of dollars?

Naturally, Nigeria (cbn) doesn't receive much dollars to satisfy the need of the market, that was one of the reason for the limitation in quantity to be sold.

jjman2322:


You underestimate the power of population. Take a drive to LEGEND HOTEL LAGOS private terminal... Theres at least one private jet landing every 5-10mins..

Nigeria has 200M people.. Assume only just 1% are ultra wealthy, thats 2,000,000 people with net worth of $1m+

Now assume 10% are rich(travel abroad, etc), thats 20,000,000 people with net worth of $100,000+

These are very low estimates... Even the poorest countries in the world have at least 10% rich population...

Go to lagos airport ikeja... thousands of people fly out everyday on tickets that cost $1000+ each..

Drive down to banana island, VI, Ikoyi, Its human beings who own the thousands of houses there that cost hundreds of millions to a few billion naira..

4gunners:
So happy. Enough of this speculative FX

Solatium:



All you are doing here is just an assumption, majority of those rich people who earn their money don't even fly private jet's,they know the cost of operating one is around $5k an hour or more depending on the capacity of the engine,most of those who do are Business executives who only travel when it is required and the cost is always on company/corporation,the other category of people are your Yahoo boys in suit who stand on pulpit and lie every Sunday of the month.


Back to the argument,how many of your Nigerian brothers have ₦100k as their account balance talk more of spending $1k on a monthly basis?
Have you been to the ATM queue? check how much people are getting out of the ATM machine.

TimeSpaceWizard:


You do not need bdc to import anything. You do not nerd dorm account to import anything. As a matter of fact I am sending a memo to CBN today to consider converting all dorm reserves to naira at CBN rate and closure of all bdc.

You do not need to source for usd to import, it is only in Nigeria you get all these parallel fx system. Simply pay your naira and get the dollars from bank at CBN rate to be paid out.

Having bdc and dorm accts destroyed Nigeria fx sector and must be stopped.

Now everyone is just scamming their way to glory under the pretext of affiliate marketing and importation and manufacturing. I am manufacture 3 products and I have businesses offshore too.

I am not a novice

jjman2322:



This is why a good business school is needed in Nigeria.. People dont understand Economics 101

First of all, CBN official rate is like 410, so converting any FX inflow to naira means you will get it at 410... Now let me ask you, your uncle in USA has $10,000 for you. Will you tell him to wire the $10,000 to nigeria for N4,100,000, or will you find a third party who needs to pay his supplier in China,India, and sell it to him for 550 (N5,500,000) ? This is whats basically happening.

As someone in the manufacturing, let me try and explain whats going on. There is severe shortage of USD. Lets assume you need raw materials worth $500,000 for the month, you may be lucky to get $5,000 in a month from your bank/cbn (through LC OR BILL FOR COLLECTION), so you now have to go to blackmarket for the rest.

Abokifx just publishes prevailing rate.. Abokifx is irrelevant when it comes to demand and supply.. Im too tired to explain more, but the solution is simple.. CBN needs to provide more USD to the big companies who need it, and the black market price (REAL DOLLAR PRICE) will drop..

The reason why goods are going up in prices (TV, PHONE, AC, FOOD, etc), even though officially dollar is 410, is because NOBODY IS GETTING 410, or even when they do its minimal.. Yes you can get PTA (Travel allowance) from your bank, but thats only like $4000.

The real problem is when as a manufacturer you need $1m.. Good luck getting that in 10 years....

There is real demand for USD from local companies here for at least $500M a day, and CBN is barely giving 10% of that.. See the problem

How much do you think NESTLE spends daily on USD, or Nigerian breweries... Quick example, indomie is made with tapioca starch, Potasium & sodium carbonate, sodium tripolyphosphate, riboflavin which are imported.. They must probably use $millions weekly just for import... So they go to black market = price jump in finished product... Hope i made some sense..

lwisee:
Good move, most people sit behind their laptops, check the exchange rate on abokifx before giving you quotations.
The next thing you hear is 'Oga everything is expensive now ooo
Even 1 dollar is now N560 I swear, you can check abokifx'

Government need to shutdown the website as well.

feckos:
Wow...very intelligent Governor

All abokifx does is coordinate rates on the street. Information CBN can counter if they are transparent. Killing businesses is what we're good at in Nigeria.

CBN should fix and coordinate itself instead of chasing shadows.
Naira is sinking, Nigeria is sinking, CBN is playing games.

Dollar is definitely getting to #600 next week, market rates will now differ and spiral out of control.

jjman2322:


Local substitute?? Please give me a local substitute for magnesium stearate. talcum powder, lactose, gelatin, sodium benzoate, ascorbic acid,?

Bro you guys dont understand how big Nigeria is... There are companies generating BILLIONS OF NAIRA MONTHLY IN SALES, with RAW MATERIAL REQUIREMENT OF BILLIONS OF NAIRA MONTHLY, which must all be shipped from abroad..

Big players i mentioned need dollars daily.. Emzor imports and uses AT LEAST 10 containers of paracetamol powder monthly (Each container is roughly $140,000 (20tons*$7 FOB), thats $1.4m just for one raw material.... Trust me, you dont understand the scale of business being done here in Nigeria. Now looking at CBN returns, emzor cant get more than $100-200k a month from her bank.. She has to buy the rest from black market... Understand?

Buckeyemedia1:
Nigerians & hypocrisy, why must they get their information from abokifx, did anyone make them the official website for forex info? Naijas must always look for a scapegoat, whilst the truth is that the lazy population with no innovation have not been able to export their commodities for foreign exchange, & are always look for a scapegoat. Instead of the price of commodities, it is forex they are watching?

jjman2322:



Brother, as someone who has pending bills in the bank for 5 months, you dont know what youre saying..

Call your bank now, say you want to import some raw material and the bill is $200,000.. see what they tell you. LOL

NIGERIA DOESNT HAVE ENOUGH DOLLARS!! The banks cant fund imports.. simple.. I have a bill in the bank for 5 months now, the amount is around $220,000, they have only given around $28,000 so far... Don't say what you dont know... if there was enough USD from banks at 410 why would prices of goods change... You mfg 3 items, why has your raw material cost gone up

As a manufacturer you should know that LCs and bills for collection for your imports for raw materials, machineries, and spares are not being funded..

jjman2322:


Truth is CBN doesnt have enough dollars to give as the BULK of dollars are given to PETROL importers to make sure price of FUEL doesn't rise.. If we werent importing fuel dollar would be 150 NAIRA..

Solatium:



I understand your point but i can authoritatively tell you not every business needs such, these figures are just been falsified,the black market you talk about don't print dollar's as well,they gathered whatever from the streets and remittance company,if emzor get such paltry amount each month,na which Aboki dey sell them the rest?

didn't emzor earn forex from sale's to West Africa region?

Solatium:



As at the last check it's only NNPC that imports petroleum products tell me how I'll you go and demand dollars from the CBN for something you are not licence to do?

TimeSpaceWizard:


You do not need bdc to import anything. You do not nerd dorm account to import anything. As a matter of fact I am sending a memo to CBN today to consider converting all dorm reserves to naira at CBN rate and closure of all bdc.

You do not need to source for usd to import, it is only in Nigeria you get all these parallel fx system. Simply pay your naira and get the dollars from bank at CBN rate to be paid out.

Having bdc and dorm accts destroyed Nigeria fx sector and must be stopped.

Now everyone is just scamming their way to glory under the pretext of affiliate marketing and importation and manufacturing. I am manufacture 3 products and I have businesses offshore too.

I am not a novice

philip0906:

This is a ridiculous take. Absolute rookie take, that shows you're lying about being an importer/manufacturer. No single manufacturer/importer worth their onions will make this wild and ridiculous claims.

You will convert people's dollars to naira. How much are people holding in their dorm accounts? When you convert people's dollar to naira, you probably solve for just a fraction of the existing FX need. Now, no one will keep dollars in their accounts or in Nigeria. How will you solve for the FX needs which is in excess of $500 million monthly going forward? Where will the CBN get the dollars to meet up with the FX shortage?

Someone clearly explained why the CBN cannot meet the daily FX needs of importers & suppliers, you're here talking like you didn't do basic economics in school.

You're a complete novice my friend.

Realdeals:
I was ruminating on the fact that CBN needs to monitors businesses that obtain FX at official rates from banks, most of them are greedy. They get FX at CBN rate to purchase goods and uses the AbokiFX rate in calculating selling price to the public, which isn't fair.

Blocking AbokiFX account won't solve it either.

TimeSpaceWizard:


To solve Nigeria's problem you must shut down bdc and convert all fx to local currency. Full stop.

Your fx need is not a cash call, it is handled by correspondence banks in the countries you are importing from.

jjman2322:


I never said many rich people fly private jet.. Im just telling you that theres enough money in the country that theres a private jet landing every few minutes in Legend terminal.

The problem is your are not exposed... I know lots and lots of people with that kind of money in their account.. Have you ever been to a upper society VIP wedding with thousands of rich guests?

Bro, there are MILLIONS of rich Nigerians who spend $thousands monthly.. You wont see them going to ATM machine, but you will see them in VIP clubs, Hotels, Airport Lounges, Business Class, First class Flights, etc..

CooKeed:


If you believe you can walk into a bank and ask for any amount of dollars to import stuff, then you're early a novice.

alizma:

You don't know how their action can work against the CBN measures to bring the rate down.
About 80% of the people using the black market get information on the rate from their site, now that BDC has been stopped, it is illegal for them to continue to post rate for the business they are not allowed to run again but unfortunately this guys can use their platform to create artificial rise in the rate which will eventually create rush among the buyers and before you know it, the artificial rate becomes the actual rate on the street (black market).
The only rate that should be publish is the bank rate, whatever you get your own outside is your own business which you can share as an individual but not as an organized body.

jjman2322:


YOu're missing the point.. Irrelevant who imports it.... Same result... OUR USD IS BEING SENT ABROAD FOR PETROL INSTEAD OF FUNDING LOCAL DEMAND

TimeSpaceWizard:


To solve Nigeria's problem you must shut down bdc and convert all fx to local currency. Full stop.

Your fx need is not a cash call, it is handled by correspondence banks in the countries you are importing from.

jjman2322:


You underestimate the power of population. Take a drive to LEGEND HOTEL LAGOS private terminal... Theres at least one private jet landing every 5-10mins..

Nigeria has 200M people.. Assume only just 1% are ultra wealthy, thats 2,000,000 people with net worth of $1m+

Now assume 10% are rich(travel abroad, etc), thats 20,000,000 people with net worth of $100,000+

These are very low estimates... Even the poorest countries in the world have at least 10% rich population...

Go to lagos airport ikeja... thousands of people fly out everyday on tickets that cost $1000+ each..

Drive down to banana island, VI, Ikoyi, Its human beings who own the thousands of houses there that cost hundreds of millions to a few billion naira..

CooKeed:


If you believe you can walk into a bank and ask for any amount of dollars to import stuff, then you're early a novice.

TimeSpaceWizard:


To solve Nigeria's problem you must shut down bdc and convert all fx to local currency. Full stop.

Your fx need is not a cash call, it is handled by correspondence banks in the countries you are importing from.

jjman2322:


MANY BUSINESSES need lots of USD. .Bro ill go back and find you a cbn FX return (list where cbn publishes what they give weekly years ago).. Im not going to argue but let me tell you again that demand for USD is in the millions daily.

#2. Aboki is not where emzor gets it.. People are buying inflow, funds from abroad, etc... Ill explain later.. but the bottom line is DEMAND >>>> SUPPLY = HIGHER PRICE... ECONOMICS 101