safariman:
Very misleading headline. The money does get into Nigeria, but he is saying the actual dollar currency is not in Nigeria. So someone or people behind the app have so much Naira that they are able to pay the equivalent exchange rate.

Exactly.
The question as well is how do they get their naira?

FreeStuffsNG:
90% 2023 diaspora remittances didn’t get to Nigeria — Oyedele

https://www.vanguardngr.com/2024/01/90-2023-diaspora-remittances-didnt-get-to-nigeria-oyedele/#google_vignette

90% 2023 diaspora remittances didn’t get to Nigeria — Oyedele

Findings have shown that about $18 billion representing 90 percent of the estimated $20 billion Nigeria’s diaspora remittances in 2023 did not end up in the country, Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, has said.


Recall that the World Bank had estimated that diaspora remittances to Nigeria in 2023 was $20 billion.

Brendaniel:


Oga you should blame the central bank and the Nigerian banks for that.

Do you know the CBN policies that are affecting remittance in Nigeria?

Do you know Paypal and some other international payment platforms are not working to remit in Nigeria because of CBN not that they don't want to, I spoke with PayPal and they told me, then you have the issue of Nigerian banks not making every Nigerian account receive dollar easily, except with domiciliary account that they take charges anyhow....

I was trading BTC from Finland and I knew how hard it was sometimes to bring the money back to Nigeria, you keep looking for channels to bring the money into Nigeria.

The Nigerians in diaspora you are blaming, most don't have a choice, those are the available cheapest channels to them, I am speaking from experience, The CBN and our Nigerian banks are not really helping matters...

If you are really trading BTC it won’t be hard to send money to Nigeria

Cryptocurrency is most reliable and easy way to send money to other country

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance in Nigeria!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If our financial regulatory control laws don't reach those fintechs, our tax laws should. FG must go after them and their collaborators here in Nigeria.
May God bless Nigeria for ever! Check my signature for free stuffs!

You Are a fucking clown. What's your business with private remittance. Aren't the main source of the nations forex not meant to be oil exports, raw materials exports and food export. So you want the dollar my person will send for me from USA to enter an account that government will tap into? You are seriously sick.

Inspirer1:

You're right.

However, don't you think since people can't access the foreign currency at the cbn rate to make payment or other forms of transactions except they purchase via parallel market, such people will definitely want to sell the remit through those apps that will give them parallel market rate too when converting to naira.

E.g
If I need 1000 dollars to purchase some of my goods, and I got it via black market rate of 1200 naira per dollar (making 1.2 million naira needed), if I make profit of 100 dollar on my goods, would you prefer I remit my profit and capital (1100 dollars) through the bank? That will be 1,078,000 naira (at say 980 naira official rate) which is not up to the amount I used in buying the 1000 dollars capital I used to purchase my goods.

The best thing is for government, through relevant authorities to establish a platform through which genuine payments can be done at official rate, this will help a lot.

Can you imagine that as official as payment of uk visa and ihs fees are, there is no official platform to pay using cbn rate unless you pay by buying from black market? Just imagine the volume of black market transactions during recent japa periods in the past 2 or 3 years.

you made a lot of sense with this analysis, na your type we need at the helm of affairs, but corruption of paddy paddy government no go let the country see front

JIBO4REAL:



If you are really trading BTC it won’t be hard to send money to Nigeria

Cryptocurrency is most reliable and easy way to send money to other country

The BTC trading is the business there, there was a technique I was using, if I send it in BTC the profit will reduce, I always needed the money in dollars or Euros because of fees and commissions on deposit of funds, purchase, price and transfer of the BTC, so I traded the BTC and made my profit over there and remit the profit to Nigeria when I need to use some.

MRSALT:

That's not true. Ask yourself where Fintech will get the naira to pay the recipient in Nigeria? They buy naira with dollars of course. The only issue is that they buy through the parallel markets instead of the Central Bank. Last year, an Indian company in Nigeria asked me to pay some dollars in their international account, while they deposit the naira equivalent in my account. If the deal was done, it would help to take the pressure off the demand for dollars and straighten the local currency.

Not getting to the Central Bank takes the currency out of CBN regulatory control and makes the market volatile and put naira under pressure. If you leave it to miscreants.

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance in Nigeria!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If our financial regulatory control laws don't reach those fintechs, our tax laws should. FG must go after them and their collaborators here in Nigeria.
May God bless Nigeria for ever! Check my signature for free stuffs!

Why are you blaming genius players in the financial market instead of blaming the unintelligence of FG. To think they don't know how things work and not interested or bothered about knowing is nauseating. The last administration of Emefiele was very wise handling CBN and monetary and fiscal policies. Emefiele says only dollars that must be sent from diaspora to banks in Nigeria and even include N5 per $1 sent bonus. FG didn't want to know any reason behind the policy. Tinubu came and ban the policy. You cannot deal with fintech. The money are sent through our banks that the fintech works with. If FG directs influx to be denominated in dollars alone using bank instruments, we will have all of the $20Billion sent!

yewit37486:


Exactly.
The question as well is how do they get their naira?

they get their naira electronically! It depends on the amount.

The vendors there are very many. For instance you see some vendors having 1m naira, another 10m, another 100k minimum transaction and so on.

This is rubbish. Does the CBN at anytime have 18 billion dollars to give banks for these remittances? The sum we are talking about is practically equivalent to Nigerias budget.

shadrach77:
This is a big lie! If I send money to someone back home and the person gets it, how can you say the money didn't reach Nigeria when it landed in the person's aza?

The payment received in Nigeria is initiated from Nigeria. The one you sent from the diaspora isn't sent to Nigeria.

Cmeo:


Not getting to the Central Bank takes the currency out of CBN regulatory control and makes the market volatile and put naira under pressure. If you leave.

Don't mind them, very foolish things. They just allow over 20b dollars to fly away like that

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance in Nigeria!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If our financial regulatory control laws don't reach those fintechs, our tax laws should. FG must go after them and their collaborators here in Nigeria.
May God bless Nigeria for ever! Check my signature for free stuffs!

FG should go after them just like they went after Aboki FX, yeah? Did that solve any problem? You should first tackle why those companies are reluctant to put their FX in a Nigerian bank.

I shut down my Naija dorm account last year because for 3 years, I couldn’t use my funds because of CBN’s useless policies. I wouldn’t even let my dollars be domiciled in Nigeria as an individual with the current policies, and not when I’m running a business.

VeeVeeMyLuv:
they get their naira electronically! It depends on the amount.

The vendors there are very many. For instance you see some vendors having 1m naira, another 10m, another 100k minimum transaction and so on.

I mean the app owners who buy the foreign currency, how do they source their naira. Are those the ones you are referring to as the vendors?

Just thinking about it, I guess they could get naira from those who want to japa, renew foreign subscriptions etc, and exchange that with those selling £/$ and need naira, but still a tricky balance to get right.

ogbonti:
this useless government thrives on propaganda and rumors- who are “some of the Nigerians” they spoke to ? dem no get name ?

government of “dem say dem say” tufiakwa 😏

They are clearly trying to make up excuses for their failure. It's too obvious to even debate about it the dollar to naria is at 1350 today tinubu is worse compared to buhari. Seems buhari layed a trap for him to swallow

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance in Nigeria!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If our financial regulatory control laws don't reach those fintechs, our tax laws should. FG must go after them and their collaborators here in Nigeria.

May God bless Nigeria for ever! Check my signature for free stuffs!

There should be a way to get these annual remittances using innovative solutions.

ogbonti:
this useless government thrives on propaganda and rumors- who are “some of the Nigerians” they spoke to ? dem no get name ?

government of “dem say dem say” tufiakwa 😏

No mind dem, they don't know what they are doing or saying anymore.

Calitoscassius:
No mind dem, they don't know what they are doing or saying anymore.

exactly - and where dem get 90% from ? who conducted the research ? what statistical methods were used? they just bandy up numbers after sniffing wetin i no know 😂

Inspirer1:

You're right.

However, don't you think since people can't access the foreign currency at the cbn rate to make payment or other forms of transactions except they purchase via parallel market, such people will definitely want to sell or remit through those apps that will give them parallel market rate too when converting to naira.

E.g
If I need 1000 dollars to purchase some of my goods, and I got it via black market rate of 1200 naira per dollar (making 1.2 million naira needed), if I make profit of 100 dollar on my goods, would you prefer I remit my profit and capital (1100 dollars) through the bank? That will be 1,078,000 naira (at say 980 naira official rate) which is not up to the amount I used in buying the 1000 dollars capital I used to purchase my goods.

The best thing is for government, through relevant authorities to establish a platform through which genuine payments can be done at official rate, this will help a lot.

Can you imagine that as official as payment of uk visa and ihs fees are, there is no official platform to pay using cbn rate unless you pay by buying from black market? Just imagine the volume of black market transactions during recent japa periods in the past 2 or 3 years.

You open a dorm account in the bank, but you have to go and buy dollar/pounds from Aboki outside the bank to fund the official dorm account.
Ordinary to pay for courses worth 5, 10, 20 dollars on educational platforms, one will have to buy from Aboki.

Let government do their findings, what and what do people need any of the foreign currency for, include it on the tradesystem portal where we have the form A and other forms. Make it impossible to pay for anything except through that tradesystem portal.

Nicely put.

yewit37486:


I mean the app owners who buy the foreign currency, how do they source their naira. Are those the ones you are referring to as the vendors?

Just thinking about it, I guess they could get naira from those who want to japa, renew foreign subscriptions etc, and exchange that with those selling £/$ and need naira, but still a tricky balance to get right.

This thing is very sophisticated, there is even digital currency (Ethereum, litecoin, and so on), on a particular fintech app, you can easily switch/convert from fiat to digital currency back to fiat ( £, $, Naira) as easy as the click of the finger.

Some vendors are selling fiat $, naira, some others bitcoin, litecoin e.t.c.

It is a decentralised system.

VeeVeeMyLuv:

This thing is very sophisticated, there is even digital currency (Ethereum, litecoin, and so on), on a particular fintech app, you can easily switch/convert from fiat to digital currency back to fiat ( £, $, Naira) as easy as the click of the finger.

Some vendors are selling fiat $, naira, some others bitcoin, litecoin e.t.c.

It is a decentralised system.

Hmm. Really interesting. Thanks for the explanation.

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance in Nigeria!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If our financial regulatory control laws don't reach those fintechs, our tax laws should. FG must go after them and their collaborators here in Nigeria.
May God bless Nigeria for ever! Check my signature for free stuffs!

TBH, most of those funds aren't illicit - because these apps do due diligence and also implement CBN's KYC policy (I know because I use many of them).

Also, the funds don't go to those illegal money laundering havens like Bahamas, etc... the funds doesn't leave the country where it was sent.

E.G. When you register on these apps, they open US, UK, EUR bank accounts in your name (partnering with some banks in those countries).

So when someone sends you money, they just move the funds from one account to theirs in the same bank - and then pay you in Naira in Nigeria.

So whether this act violates CBN's policies, I don't know. But this apps are important for many Nigerians...and it's not just to receive funds, when you want to pay in foreign currencies too, they open virtual debit cards in your name for you to use, and they handle maintenance, and all.

So they're important in Nigeria's economy because money still flows through them.

Funkyswagzz:


They are clearly trying to make up excuses for their failure. It's too obvious to even debate about it the dollar to naria is at 1350 today tinubu is worse compared to buhari. Seems buhari layed a trap for him to swallow

you are very correct he using busy running about like a headless chicken - going to inauguration of imo state governor because he knows nothing about what to do inside aso rock - thus job is bigger than tinubu - if he has any little respect for himself and his peace of mind - he should just resign and call for fresh elections and hand over jeje to someone capable

ogbonti:


exactly - and where dem get 90% from ? who conducted the research ? what statistical methods were used? they just bandy up numbers after sniffing wetin i no know 😂

Exactly, these are the same goons who asked, na statistic person go chop? Now they are whipping out %90 statistic from no where, no source. And want intelligent people like you and I to believe it. As i said, they have ran out of lies and propaganda, they are just making things up as they go now, and kicking cans down the road. by next week they d come out with another rubbish. Tifnubu has nothing to offer Naigeria.

This is very true. Some of these apps are not even owned by Nigerians. I have said it before...CBN or Naija Govt need their apps...or fix many policies that can help with remittances. You can create an insured account, so when people want to buy houses...they can pay into such accounts, then once the deal has been confirmed by the buyer, it will be released to the seller. If Govt can do that and help with land registration and tracking, housing policies around landlord-tenant fast-tracking these issues, and investment banks with fixed interests for Diaspora remittances, you will get people sending money into Govt coffers.

I watched a whole Japenese series, and the actors ate their noodles, drove Hyundai cars, and so on...even abroad, the Japanese will buy Toyota and so on...the level of loyalty to their country is so high...Nigerians, ' level of patriotism is low. Govt is not helping. They need to do better to get more direct remittances.

FreeStuffsNG:
90% 2023 diaspora remittances didn’t get to Nigeria — Oyedele

https://www.vanguardngr.com/2024/01/90-2023-diaspora-remittances-didnt-get-to-nigeria-oyedele/#google_vignette

Brendaniel:


Oga you should blame the central bank and the Nigerian banks for that.

Do you know the CBN policies that are affecting remittance in Nigeria?

Do you know Paypal and some other international payment platforms are not working to remit in Nigeria because of CBN not that they don't want to, I spoke with PayPal and they told me, then you have the issue of Nigerian banks not making every Nigerian account receive dollar easily, except with domiciliary account that they take charges anyhow....

I was trading BTC from Finland and I knew how hard it was sometimes to bring the money back to Nigeria, you keep looking for channels to bring the money into Nigeria.

The Nigerians in diaspora you are blaming, most don't have a choice, those are the available cheapest channels to them, I am speaking from experience, The CBN and our Nigerian banks are not really helping matters...

I don’t think he’s in anyway blaming those in diaspora… he’s just stating the fact the this funds don’t get to the country that’s all. Now as a government they can better make policies to entice the fintechs to move their funds to Nigeria.

ogbonti:



you are very correct he using busy running about like a headless chicken - going to inauguration of imo state governor because he knows nothing about what to do inside aso rock - thus job is bigger than tinubu - if he has any little respect for himself and his peace of mind - he should just resign and call for fresh elections and hand over jeje to someone capable

like seriously, but he d rather kick the bucket than to hand over, Tifnubu that is already preparing to rig the election again in 2027, that is if he didn't kick the bucket before then

Nigeria Government is the enemy of Nigeria progress.
How can Buhari limit people's access to their domiciliary account by restricting how much of their money they could access?
You want foreign remittances without withdrawal.
Nigeria is a big Joke.
Uptill today, people don't trust the unstable policies of the government. So, don't expect direct foreign remittance (DFR) from people abroad. You guys bleeped up with the draconian policies.

What exactly is he trying to get at?
So true d dollar funds are held by some fintechs... hw did the fintechs get the naira they send to end receivers.. did they steal it? Didn't they also buy it from those who need dollars ?
All of these fx issues is not really about black market or not, it's about scarcity of the total fx(cbn+black market). .
And they keep blackmailing the black market as though this is the first time we are having a black market... typically b4 now, black market rate was usually just some N2-N5 more than cbn rate... what then changed? SCARCITY !! The pegged CBN rate in buhari time was usually not real.

All those TransferGo, TransferWise (Wise) etc are responsible. The dollar didn’t come.

Government should ban them.

Only companies like Moneygram, Western Union, Ria etc really remit dollars to Nigeria.

Greed too is k..1lling our people. They want to get money at black market rate and they are complaining Nigerian Naira is not better. Eating your cake and still trying to have it.

shadrach77:
This is a big lie! If I send money to someone back home and the person gets it, how can you say the money didn't reach Nigeria when it landed in the person's aza?

Explaining further for your understanding is a lost cause, because you will still not understand if you didn’t understand from the Original post and the follow up comments.

It is well.