How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? - Car Talk - Nairaland
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| How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Nobody: 8:00pm On May 27, 2011 |
Abuja – CBN governor, Malam Sanusi Lamido Sanusi, said in Abuja on Tuesday that the bank would test-run its cash transaction limit policy in Lagos in the next six months. As in most sectors of the Nigerian economy, the Auto sector conducts a very substantial volume of its business on cash basis. Many NL dealers are actually paid in Cash for most of their transactions. Sample common transactions below: [list] [li]Customer meets dealer at the dealer's bank to enable a direct deposit of funds into dealer’s account[/li] [li]Customer goes to dealer's bank and deposits funds into dealers account (common with preorders or when buyer and dealer are not in the same city)[/li] [li]Customer pays the dealer with a cashier's check and waits until check is clears before taking possession of vehicle[/li] [li]Customer and dealer use the same bank and customer uses online banking facilities to move funds into dealer's account [/list] As one can see, only the last sample transaction listed does not require cash deposit/withdrawal in amounts that usually are in the millions of naira. The new CBN policy, which pegs cash transactions at an initial N150,000 takes effect from June 2012. CBN governor, Malam Sanusi Lamido Sanusi, said in Abuja on Tuesday that the bank would test-run its cash transaction limit policy in Lagos in the next six months. N150,000 is hardly enough to buy keke, much more a car. I invite car dealers and other posters alike to post creative ideas as to how dealers and customers can deal with this problem while the system is being perfected for cashless transactions. I start with my own recommendation: Dealers should maintain accounts in several major banks in Nigeria, I'd recommend at least 5 banks. This will increase the chance that a customer will be able to use online facilities to transfer money to one of the dealer's accounts. More ideas are welcomed. Cheers, Monitor_1 |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Seun(m): 11:53pm On May 27, 2011 |
Why not just protest against the policy? We are not under military rule anymore, are we? Must we simply accept anything that's forced on us still? |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by sonnie10: 12:47am On May 28, 2011 |
let buyers pay with certified bank checks. Because of our system, a personal check is out of question. If both of you agree, follow the buyer to his bank, he buys a draft in your persence, that will eliminate the risk of getting a fake draft or check. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by oblo(m): 5:39am On May 28, 2011 |
Bank cheques is a good idea but I dnt think having an accnt in various bank really necessary, my reason is this. There are very easy and convinient e payment services renderd by all banks for a fee for inter bank transfers, U walk in to the bank where u have an accnt, ask for an epayment form. U fill and pay thd charges and within 24 or 42 hours dependin on the method used ie NEFT, AUTOPAY or RTGS. The dealer need not follow the buyer. All he has to do is wait for the credit alert from his own bank. My own question now is this? How do the dealers in turn get hold of the cash in bulk to purchase that car in cotonou as we all know that cotonou purchases are done by cash. , |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 7:50am On May 28, 2011 |
Nothing wrong about promoting the already existing cashless but the imposition of cashless transaction on all is wrong and unacceptable. Even our "look up to" more advance countries of the world do not impose/force cashless transaction on the populace nor do they charge unbelievable high charge as deterrent from using the more acceptable cash. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by inspiredm(m): 8:02am On May 28, 2011 |
Most Banks Have Inter Bank Transfers which Happens Under 24 Hours Its Advisable for a Dealer to have Accounts in all Major Banks. its an arguable fact that 80% of Nigerians Use about 5 to 6 Major Banks in Nigeria This Would also help to Curb Fraud as the Payments Maid By Customers or Dealers Would Be traceable. Personally I cannot remember the last time I got Paid Cash for a Car But for Cotonou Dealers, Who deal majorly in Cash, how will they carry their Huge Sums of Naira Across Borders ? |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by DisGuy: 8:13am On May 28, 2011 |
^^ that's what i thought as well, do people still go to meet dealers with cash? The dealer will still put the cash in his account anyway, so why not put it there and let him/her check on-line, I will be scared if someone is choosing to pay me huge amounts in cash Anyway, Ogun state and many others are outside the test phase of the policy, but travelling up and down with cash is risky |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Tadeus(m): 8:19am On May 28, 2011 |
I think its a welcome development. Buyers will be rest assured now. Bank transfer is more secured than one on one cash transaction. cheers |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by inspiredm(m): 8:26am On May 28, 2011 |
Tadeus: It Should NOT be a Welcome development for Cotonou Dealers, How Will Cotonou dealers Carry their Naira across Borders, I know Ecobank has branches in Benin Republic, But it would be Quite herculean As All Your Customers have to make Transfers First to Ecobank Nigeria, Then For Further transfer to Ecobank Benin Na wa o. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 8:27am On May 28, 2011 |
Have account in all the major banks? That isn't a solution as not all the peasant would have multiple N5k to open new accounts in many more banks. Let it be that we have the choice to do it our own and the govt shouldn't manifest a neo-military way of force via imposed cashless transaction. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by ayodeji1(m): 8:42am On May 28, 2011 |
inspired_m: why go through all that stress?with a coporate account u can withdraw up to 1.5million.thats still tangible enough to do something with in cotonou and continue futher transactions next day. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 9:02am On May 28, 2011 |
It doesn't cost peanut to have a firm registered as a corporate entity which is a requirement for opening a corporate account with any bank. The fact remains that going cashless should be encouraged but not imposed. CBN/Govt should improve all necessary platforms that would encourage cashless transactions and for them to improve it, we need a robust IT infrastructure in place and for this infrastructure to be in place we need stable electricity. Without stable power all these hope for an almost 100% cashless society would be nothing but a dreammmmmm |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by sonnie10: 1:39pm On May 28, 2011 |
If i am buying from a road side display (dealer), i don't think i would trust him enough to pay into his acct and then wait for 24-48 hours for him to acknowledge the receipt of the money before taking the car. It should be "CASH AND CARRY". Don't be surprise that the vehicle and the seller might not be there when you go back for pick-up. With bank check or draft (not personal checks), all parties are settled instantly. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by inspiredm(m): 1:49pm On May 28, 2011 |
ayodeji1: Are you sure of the Highlighted Part ? |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Tadeus(m): 1:50pm On May 28, 2011 |
It Should NOT be a Welcome development for Cotonou Dealers, I have my reason for saying that, we the cotonuo dealers can not stop cbn from implementing the policy. at border, we have people that are specialised in changing naira to cefa and most of them have account with each bank at the border, wat we need do is make a transfer and collect the equivalent in cefa in cash. I think its the only solution for now |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 2:49pm On May 28, 2011 |
@Tadeus, We are Nigerians and the agglomeration of voiced concern goes a long way at determining govt's implementation or shelving aside of a proposed govermental policy. How can paying money into a 3rd party(bereau de change operator)account be better than holding my destiny in my hand in the form of taking the amount I want to exchange to them in cash to avoid "DRAMA". |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Nobody: 3:42pm On May 28, 2011 |
IT'S NOT HARD AT ALL. SINCE THE POLICY IS ONLY AFFECTING THE NAIRA CASH, THEN MAINTAIN A DOMICILIARY ACCOUNT AND TRANSACT IN DOLLARS. SO WHAT YOU DO IS WITHDRAW FROM YOUR DOLLAR ACCOUNT AND CHANGE VIA BUREAU AND MAKE PAYMENT. AND TO THE PARTY WHO IS RECEVING PAYMENT, YOU CAN ACTUALLY SAVE WITHOUT BEEN AFFECTED BY THE POLICY AND WHEN YOU NEED TO PAY TO, YOU MAKE A ACCOUNT TO ACCOUNT TRANSFER AND (FROM NAIRA TO DORM) AND THEN WITHDRAW |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 4:01pm On May 28, 2011 |
@Hailolive, Must cash handling be so difficult? Transfer to this b4 that withdraw can happen. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Tadeus(m): 5:51pm On May 28, 2011 |
@Tadeus, I agree with you but I think the policy is part of what we need in Nigeria. If you visit cotonuo cars very well, atleast you will have one or two trusted money breaker. We that stay very close to the border, is either we have family or very close and trusted friend that break money at the border and that is why we hardly have issue with fake or incomplete money. Its simple, exchange rate market is an open market, customers are free to walk around to be rest assured about the current exchange rate from others money breaker so that issue of higher breaking will not occurred. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 12:47pm On May 29, 2011 |
@tadeus, In response to your claim of having trusted "money breaker",man is man and can break your heart when you least expect it. Lets be realistic,do you really think,that complicated way of doing things would be beta than you taking your cash to d border and looking for the best deal regards exchange of currency? |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Tadeus(m): 1:06pm On May 29, 2011 |
@ femmy2010 I think you are getting my wrong. what I mean is that most of money breaker have account with almost all the Nigerian banks at the border, what just need do is enter the bank together with the breaker and make a transfer to his/her account and collect CEFA after confirmation. I have been doing it before this POLICY. when im talking about trust, I simply mean that the breakers that i know are very close to me and they can never increase the breaking rate or incomplete cash. The breakers also have association and they are well organized. The simplest and fastest way of breaking money at the border is even via transfer and you will collect CEFA in returns instead of carrying naira around which i think its risky because at times bank may pay you with lower denomination. For instance, if you withdraw 2m naira, you will need nylon bag to carry the money, but when you convert it to CEFA, you may put everything inside your pocket and nobody will know that you are carrying cash on you. cheers |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by femmy2010(m): 1:26pm On May 29, 2011 |
That I understand but do you understand that many of these "breakers" aren't multi millionaires and they still have to withdraw the transfered money from their respective Nigerian bank accounts daily to replace the Cefa they exchanged to you? Withdraw would still in bulk ma bruva. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Nobody: 1:26pm On May 29, 2011 |
hailolive: I had assumed that the policy affects all cash transactions. Please post any CBN pronouncement which states that it only affects Naira accounts. The loophole you speak of above could not have been left unaddressed by the CBN in my opinion. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Kilode1: 1:39am On May 30, 2011 |
Seun: This guy asked a very good question earlier. Y'all make a lot of money from these transactions, why not contact your Senators and the "listening" President GEJ you just voted in to ensure that this fire-brigade policy will not hurt businesses? It's not just about having 10 bank accounts, what about the effect on your other customers too, especially those who'll still need to withdraw, pay or transfer cash in a city with very little electricity and e-pay services? Except everybody wants to do their cash transactions outside Lagos  |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by DisGuy: 1:43am On May 30, 2011 |
wouldn't hurt if they actually [b]register [/b]their business and pay tax too, higher withdrawal limit as a bonus. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by emekaD3(m): 1:54am On May 30, 2011 |
uU guys dont get it, the whole idea is to reduce cash in circulation, cbn wants to introduce bank wire for high volume payments |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by Kilode1: 2:45am On May 30, 2011 |
Dis Guy: Good point. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by cvibe: 4:33am On May 30, 2011 |
If this policy actually holds, car prices will go up because dealers have to factor in bank charges to car prices should deposits be above the threshold. So, car buyers, expect to pay more courtesy SLS. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by DisGuy: 4:40am On May 30, 2011 |
Those that increase their prices will lose out to dealers that embrace the change and accept cheque, mobile or bank transfers |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by member479760: 6:24am On May 30, 2011 |
And what is going to happen to western union transactions of more than $1000 to naija for those building houses? This dumb man just wanna make a name with this useless policy that the system is not ready for, i hope Prof let him go before then. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by tjbash(m): 7:12am On May 30, 2011 |
The Policy would have been very good if all supporting infrastructures are on ground. For instance bulk of our business men don't know how to use the internet and those that can use it don't have access. With INTERNET BANKING I feel the stuff will have a smooth run if we have the following on ground: 1. Internet access to all. 2. Stable power supply to operate. 3. The most important is TRUST. I - BANKING even allows you to transfer to other banks, so u need not open multiple accounts. |
| Re: How Are Nl Dealers Going To Deal With Sanusi's Cash Transaction Limit Policy? by yamakuza: 7:20am On May 30, 2011 |
nakedall: I want to believe u can collect your WU in dollars and exchange with abokis. They should be resourceful enough to find their way to getting plenty naira. Remember the cbn policy was introduced cos of the high cost of printing (and managing?) naira notes. Not usd, gbp or even cfa. I foresee a situation in which high volume xactions will be done in forex. People will simply convert their cash stockpiles to forex and continue keeping money at home or paying in cash. This will only drive up exchange rates. Instead of meeting at d bank, u meet at bdx for high volume deals. If u believe the cbn affects forex, what will happen to bta? The solution to micropayments in a cashless society will be mobile money, which has been very successful in kenya. |
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