FreeStuffsNG:

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!

How about not blaming the apps and advising the FG to make diaspora remittances easier for Nigerians? It's only in Nigeria that you need 'domicialiary' account to receive money from abroad. Other parts of the world allow just a regular savings account to receive money.

And why do banks hardly sell forex and totally left it to BDC operators?

Nigerians cannot even use their cards for online transactions anymore, it's those same apps that allow people pay for things online...

Our banking system is what needs reform. Emefiele and his cahoots have reduced Nigerian banking system to rubbish.

LegendHero:


Did you for the $$?

You’re getting the naira right. In the normal sense, it reaches Nigeria because you can go to the bank to get the Naira but the $$ itself being sent is just being collected by the fintech there and they are paying you with their naira reserve.

What I now don’t understand from this Mr Taiwo is that this has been the norm for decade, so at what point did they know almost 80% of it is not reaching Naija?

I dont think it's been the norm.

When the likes of western money and money gram dominated the market, they did the notmal thing.

..but times have changed, difference between the official rate and black market rates have grown, no one wants to be offered official rate when black market rates are better.

Also fintech apps are now instant transfer, most of the other ones still long stories.

Last bring your money into a dorm account in Nigeria is very frustrating. Many cbn paperwork to move it n cbn policy changes often. Banks are charge huge transaction fees , fG charges taxes.

Why would anyone want to use such

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?

Olodo!

October1960:
See rates today from 3 apps.

You only named Sendwave, where is the other two rates.

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!

Not everybody cares or has virgin island accounts, they are talking of the average joe that wants to send $1,000 out of his salary to his family in Nigeria, they get in touch with other Nigerians over there in the US who acts as a currency trader. You send the $$ into their $$ account there in the US and then they use their naija account to credit your naija local account at the black market rate. Until the thief emiefele came along it wasn't attractive to look for those individual currency traders because you could just send your money down through WU and your family goes to the bank in naija to collect it in $$ or naira at a rate close to black market. Upon useless policies emiefele was still stealing the $$ and he's still walking around asking for bail, what a country of clowns

pacespot:


So na so flutterwave and Cos be blocking dollars from reaching Nigerian banks thereby causing the Naira to crash against the greenback?

But I think most of the problems are from Nigerian banks, I have a lot of dollars in my forex trading account but I'm not allowed to do bank withdrawal of dollars even though I have a domiciliary account linked and from which account I transferred the money I used to start trading in the first place. It is same story if you want to withdraw dollars from Binance. Nigerian banks will convert the dollars into Naira, so that means Binance gets to keep my dollars while sending Naira into my account. You can't even transfer dollars from your domiciliary account into another account these days.

That's one of the major challenges there....

LegendHero:


Did you for the $$?

You’re getting the naira right. In the normal sense, it reaches Nigeria because you can go to the bank to get the Naira but the $$ itself being sent is just being collected by the fintech there and they are paying you with their naira reserve.

What I now don’t understand from this Mr Taiwo is that this has been the norm for decade, so at what point did they know almost 80% of it is not reaching Naija?

So after paying from their naira reserves, how do they replenish their naira reserves without dropping dollar for naira, and it's not like they close shop after selling their naira. Make it make sense

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

Id!ots, you hastily removed the Naira-for-Dollar incentives Emefiele put on ground to attract more dollars into Nigeria out of your tribal bigotry and still wonder why no one is sending dollars to the country!

How senseless can these so-called leaders be??

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 guys are not reasonable.

There were incentives on ground before your m-m ticket holders came in and hastily removed them out of their ingrained stupidity.

Before now, banks were paying our relatives #5 for every dollar they were withdrawing from Nigeria, and people were happy to send dollars directly to Nigeria.

Nigeria is now facing the consequences of that reckless decision by your clueless m-m leaders to remove those incentives and policies Emefiele put on ground, while you're here blaming the innocent Apps as is typical of you and your folks.

Mayflowa:


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!

Exactly.

You're upto date

Yeye Tinubu and his co workers just came in and yanked the policy off without asking questions.

Those incentives were encouraging people to send something to Nigeria then so that their relatives can benefit from the incentives.

Does Fintech sell at black market rate? Which one can you recommend?

mcbreeze:
The explanation is reasonable but the difference between the parallel market and official are too wide.
I can't go through the bank to sell dollar when I can get it at higher amount with Fintech app.

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...

U have made valid points and thats the fact.

mrrandomguy:
He is absolutely correct.
For those who don't understand, the dollars don't reach Nigeria. What the money transfer companies do is to credit the receiver with the naira equivalent. The actual dollars is then diverted away from the official market. This is why the CBN through the official market can never meet Nigeria's dollar obligations because of the low inflow of dollars.

People like the olodo called Bismarck Rewane are agents of the world bank and IMF. They have been pushing for removal of subsidy and exchange rate liberalisation for a long time despite knowing that the official rate can never be the same as the parallel rate. These people have made billions of Naira from the systematic devaluation of the naira.

There is a difference between 90% of the dollar did not get to Nigeria and that 90% of remittance didn't get to Nigeria. Please do you guys think you are talking to kids?

One thing I give APC government is that they know how to run effective propaganda.

That the dollar did not get to Nigeria does not mean that 20 billion dollars was not remitted. It is up to the government to find a means to get their hands on it.

LegendHero:


Did you for the $$?

You’re getting the naira right. In the normal sense, it reaches Nigeria because you can go to the bank to get the Naira but the $$ itself being sent is just being collected by the fintech there and they are paying you with their naira reserve.

What I now don’t understand from this Mr Taiwo is that this has been the norm for decade, so at what point did they know almost 80% of it is not reaching Naija?

Please how do the Fintech get their Naira reserve? These people think they can always use our brain. Always trying to justify every rubbish.

As if I got my fx from cbn when I wanted to pay for common udemy courses.. so I should channel my dollars through cbn rate abi.

These clueless people self. Pls ask this man how do the Fintech get their Naira reserve that they pay Nigerians. Do they get it from the moon? Do the Fintechs print the Naira? Who exchange the Naira for them?

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 is a difference between 90% of the dollars remitted are not remitted as dollars and 90% of the dollars are not remitted.

One thing I give to this government is how effective their propaganda machinery is.

Whose fault is it that the dollar exchange happens right of offshore?

I still don't the significance of cashing the dollars first in Nigeria before changing it to naira, if the huge disparity between CBN and black martket rates exist, and if demand for dollars is still driven by our mostly import based economy?

Jamie248:
The sensible thing is for these fools to set up their own app and capture the forex from source too but they are mentally lazy, all they will do is blow grammar, rob the treasury and whine

Brain-dead mongoloids

Let’s assume this is a brilliant idea, here are some pertinent questions for you to consider:
1) How should CBN source the outflow naira since they can’t simply use QE as soln
2) CBN can’t simply source Naira from the banks (Monetary Deposits) they regulate as that will simply turn them into a direct competitor

These talks no follow abeg... The Fin tech companies had CAC registration, there's NDIC certification, SCUML, ICPC, CBN and other bodies that are involved when it comes to opening a company's business accounts not to talk about a FINTECH company operating in Nigeria. All financial transactions are monitored. There are auditors too, the FINTECH companies are well known, so, what stops the CBN writing policies to track them down. Are these financial money related bodies telling us that they don't know how the money gets to the fintech companies and how they can make them accountable at the equivalent rate?

Jamie248:


1,000 CFA is now 2,000 naira

It's because they still have money to loot and Nigerians are not holding them accountable.

It stops the moment the people hold the leaders accountable. Not all these ones done on social media. Our institutions are too weak!

Ideally, someone like that Betty Edu would have been arrested and remanded in prison.

sslcrypt:


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.

Government sef no suppose dey involve themselves in all these kind talk. They are looking for easy way out of the mess they created.

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.

The biggest pressure on the naira is corruption that doesn't allow businesses to thrive.
How about ease of doing business?
Power?
Insecurity?
Dollar earnings?

All these ones about CBN not being able to regulate is not the basic issue.
They are trying to avoid the major issue...all these ones stem from that one issue CORRUPTION.

If CBN does all the regulation, if CORRUPTION still thrives, everything is a Pure waste of time!

Most people know THIS problem already, what is needed is solutions.

Slippy:
They get to Nigeria alright but they are mostly sold on the black market. Who wants to sell for official rate when they can make more on the black market.

Nigeria truly cannot get the full benefit of remittances if the trend continues.

Only 10% does. It's out of those that do make it down that you see majority again selling at the black market.

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?

Unless you intentionally send dollars to the beneficiary's dom account, most of the funds sent down get converted into naira.

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!

Take a look at this fool.

I already explained this last year when some were waiting for December to come, onto say dollar will roll in......in 2023?? When there are plenty apps that they use to send money and the recipient gets naira equivalent. Ain't nobody coming around with cold hard USD anymore, but dem no hear word..

Now wey world Bank don explain same thing, maybe dem go hear. Op freestuffsng wey no kuma know him left from right dey say make govt go after fintechs that have provided ingenious and working solutions (a feeling/concept he knows nothing of) to the problems of many, because his own country are filled with inept people like him. Smh

grandstar:


Leave the Fintechs alone. It's a lame excuse.

Common sense dictates the Naira paid out to the recepient is backed by forex. The grammar of it entering or not entering the country is semantics.

It's the equivalent of saying the global forex market does not affect the value of your currency because it is electronically traded and involves a lot of leverage, that it is a Kalo Kalo market.⁰00⁰

The government must sit up and do its job. The CBN needs to increase interest rates to tame inflation which will instantly arrest the weekly slide of the Naira. This will restore confidence in the local currency and start an appreciation of it.

Next, it might be best the government pegs the Naira at the official market and defends that rate, which will reduce the gap between the official plate and the black market to between 2-3%. The official rate should slightly devalued so it can be a rate the CBN can easily defend and also make the country's products and services competitive.

Remittances sent through apps should be paid in Naira. If the Naira rate is stable, most people will be fine with it.

The problem with the above is that right now the government simply doesn't have the necessary reserves to defend a pegged rate. The only way out of this mess is to combine the interest-rate increases you've already mentioned with the announcement of a large-scale privatization program, as part of a larger program to rein in the size of the public sector. Even though any privatization program will still take a few years to complete, just the readiness to make concrete proposals would firm up foreign investor confidence, which would reverse the downward pressure on the Naira.

The other side to this story is the need to rein in public-sector demands for ever larger wage increases to cope with inflation, as this is already giving rise to a classic wage-price spiral. One advantage to the announcement of an ambitious privatization program (apart from the prospect of both bringing in badly needed forex while simultaneously reducing the government's expenses) is that it will put public-sector workers on notice that their positions are no longer secure enough for them to try holding the rest of the country to ransom through strike action. The NLC leadership may continue to foam at the mouth, but the likelihood of anything coming of their threats will be radically diminished.

I know Tinubu was badly shaken by the backlash when he announced the abolition of the petrol subsidy (which he never fully followed through on), but the fiscal situation left behind by Buhari was atrocious, and the changeover coincided with a sharp rise in global interest rates to make the already existing debt burden crushing, meaning no one is about to grant Nigeria fresh new loans unless Tinubu is willing to go to the lender of last resort, i.e. the IMF. Not only would doing so kill Tinubu's hopes of getting re-elected (given how negatively Nigerians view the IMF), but the reform program the IMF will demand would be far more radical. Tinubu needs to get over his fear of public opinion and put forward a program that will draw in FDI on a large scale, before events force far harsher medicine on him.

BennyDGreat:


The biggest pressure on the naira is corruption that doesn't allow businesses to thrive.
How about ease of doing business?
Power?
Insecurity?
Dollar earnings?

All these ones about CBN not being able to regulate is not the basic issue.
They are trying to avoid the major issue...all these ones stem from that one issue CORRUPTION.

If CBN does all the regulation, if CORRUPTION still thrives, everything is a Pure waste of time!

No nation is immune of corruption, whether US, Vatican or Saudi Arabian. Regulations is what keep it at bay because regulations comes with penalties that deter people from unholy practices

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?

I wonder


Very foolish and illogical analogy.
Instead of them to say the money was not remitted through channels were government can tax and steal.
they are claiming it did not get to its recipient or Nigeria.

gotousa2013:




AGBADO thinking. DONT you know the exchange rate differs on these APPs compared to what it should be and it devalues naira?

The govt are not putting any bit of effort at all to improve the situation

The government are not doing their work.

They are the one encouraging this illegality. How many country operate this kind of black market FX rate?

Jamie248:
The sensible thing is for these fools to set up their own app and capture the forex from source too but they are mentally lazy, all they will do is blow grammar, rob the treasury and whine

Brain-dead mongoloids

Yes o

They are very silly and stupeed