Dollar is not coming in. What people do is that they send dollars among themselves abroad and give the equivalent in naira from their naira account. Most people abroad also have naira accounts and the reason for sending this way is to avoid transaction fees

saasala:


You are not getting it.

Dollar is coming in, the government collects it from you and give you Naira. Govt now decides to use the dollar in the best way they deem fit. Shey you understand now.

saasala:


You are not getting it.

Dollar is coming in, the government collects it from you and give you Naira. Govt now decides to use the dollar in the best way they deem fit. Shey you understand now.

The politicians know they can't earn a single dollar legitimately since the CBN doe not have such powers. So the only way to get dollar notes is to box legitimate guys working 24/7 on Upwork, Freelancer, etc. Take their dollars from them, give them Naira, so people like Kenyamo can have more dollars to buy estates in the U.S.


Just wait for the next APC convention. You will see how people who never earned a single dollar note throughout their political career share thousands and millions of dollar notes. Meanwhile, those doing the work, bringing in the dollar, will be forced to battle with an irreversible inflation.

didymario7:


The black market and official rate will never be thesame. They will always be willing to offer more than the official rate. Use your head to think!

So why are they thesame in UK, U.S, Dubai, even Ghana and Kenya?

ValarDoharis:
Dollar is not coming in. What people do is that they send dollars among themselves abroad and give the equivalent in naira from their naira account. Most people abroad also have naira accounts and the reason for sending this way is to avoid transaction fees

Why go through all that stress when official bank rate is competitive?

hafeeanubasy:

And everything you listed in your last paragraph is done within 6months?

Don't deceive yourself, you know the CBN governor is in over his depth. He had 5 months and the currency is in free-fall, while the economy is in shambles with no clear policy direction. Do you think it is diasporic remittances that will shore up foreign reserves? You removed import bans knowing fully well you couldn't even satisfy forex demand as they stood, what were you expecting?

You can't stabilise your currency and you don't expect people to hedge their risk? Should Nigerians continually suffer for their incompetence?

Please, show me one policy or decision that shows these people know what they are doing, just one.

sweetgala:


Nonsense what does capitalism have to do with FX and its use and abuse in Nigeria.

What exactly is the enterprise of the people "from that side" other than importing substandard goods, damaging local industry with the collusion of their foreign partners and other illicit activities!

So I have to explain to you how capitalism will make Nigeria an industrial powerhouse thereby solving our problems from the roots and thus negating the need for these patch patch economy management system ?

GeneralDae:

So why are they thesame in UK, U.S, Dubai, even Ghana and Kenya?

They don't have Politicians who bribe delegates in huge amounts of USD during party primaries, their public officials are treated in their own hospital, they don't subsidize religious travels to Jerusalem and Mecca, their citizens largely attend their local schools, they dont spray USD when they attend parties. You can see where I am going with this right? I can go on and on. Until the fundamentals are addressed, all this ban this, restrict that, will not work.

A positive from Tinubu’s administration.

Hohaiiiode:
we can all disagree and argue our points for or against an issue , that is what civility means .

All this monkey , bastard and all you are calling yourself thinking you are calling me is non of my problem.

I have fairly been critical of policies I think won’t be beneficial or helpful and likewise will say what I need to say when I think a policy seems okay. We can disagree . But that is the beauty of public discuss.

I am very certain this policy will affect me more than you. I do remittances to Nigeria often and I benefit when my family can sell it and get more value. I have a dollar account with money in it. But I see the loopholes in all this banking practices . It might benefit me or others but the nation is bleeding.

Do I need dormicilary account to make payment to USA , China or where ever ? Purely no! I do international payment from where I am to other places … I don’t need to create a special account for that. I only fill a form and specify the recipient currency. You think this policy will affect you the most ? No!

If well implemented it will affect the corrupt politicians and bankers who for many years have been poorly supervised by cbn and therefor making forex availability so difficult or non existing for those who genuinely need them for whatever purpose.

It's very simple the Nation is bleeding cos of the persons in power. It has absolutely nothing to do with dormiciliary accounts or loopholes around FX remittances. The current FX and preceeding FX capitulations are a symptom of the problem, not the cause of the problem.

Mass exposure to domiciliary accounts occured when restrictions were placed on Naira cards for international payments. Before then dorm accounts were not as popularised or even as useful, even when the Naira was historically bleeding value.

If the Government dares to be transparent about its fiscal policies, it would befuddle Nigerians how much Naira was printed between this time and the eve of the last elections.

What I'm saying is there's practically no way the Naira would shed value this crazily just on account of you and others saving your monies in USD. There is too much Naira in circulation, printed at will by crass nepotists at the helm of affairs and that's just one of the organic problem.

I'm sorry for being brash and uncultured with my earlier response. In most cases you're interacting with paid political trolls on Nairaland, been tuned to tune my response to something that resonates with them.

Now let's assume we want to fix this problem, again your approach is basically treating the symptoms instead of focusing on the organic disease.
The reason there's a thriving black market for FX, ergo spiralling rates for USD, is because the current official FX market is illiquid. If you tighten your grasp on the black market, you'll only create increased demand cos the assets floating on the black market will be limited. With the assets available on the official market also scarce the end game is even more disproportionate loss in value for the Naira compared to the Dollar.

With these policies, the result will be even lower USD supply to Nigeria, again, this has been shown to be the historical natural history. because guess what you can't force people to convert their USD into a currency that's currently in a nose dive.
People (at least the significant majority) will find ways to circumvent these policies to either secure their USD or get Max value for it at the expense of the Naira.
People will still convert thier Naira assets into USD type assets - many avenues for this including crypto.


I'll go on a limb to say anything sort of burning this country to the ground and starting afresh so we don't have leaders whose sole interest is lining their pockets and who actually care about people; and a populace that's not so lukewarm and uneducated about how fvcked they are will still fall under the coffers of treating symptoms of a malignant disease.

To save the Naira. Nigeria needs a better fiscal policy. Fiscally responsible and intelligent leaders. An educated populace. A total overhaul of the economic system so the country can actually register a trade surplus for the first time in its modern life.

Rolings:


See them
Because them no succeed put their man there ...then nobody else can do it.
I keep telling you the biggest lie you tell yourselves is that ONLY [b]AN IGBOMAN [/b]can make Nigeria great.
How can a people that elect disasters as governors give anybody any lesson of governance

Replace the bolded with Buhaari, Tinubu or any of your favorite politician. Nigeria is beyond economic redemption. Few people are trying to revive what is left of this country. The others are devouring all they can before the eventual end of the country. It is a matter of "when will it happen"

Hx1x:
Just got this email from WorldRemit.

Seems CBN has quietly re-introduced their policy where people abroad can no longer send foriegn currency directly to folks in Nigeria. Folks in Nigeria now can only receive the naira equivalent of the money sent.

I've checked Western Union and seems to be the same as well. Moneygram still allows dollars to be sent, but can only be picked up. Can't send to a dorm account any more.

I have checked and haven't seen any news on this.

You can still send directly from your bank to a domiciliary account in Nigeria. It only affects money sent through IMTO

No official bank rate can be as competitive as peer to peer. Besides, its not stress cos I do it sometimes

GeneralDae:

Why go through all that stress when official bank rate is competitive?

Fembleez1:


Was the money sent directly to your naira account or you were sent dollar which the bank converted for you at the counter?

Dollar was sent to me via moneygram cash collection

ryusufu:


Dollar was sent to me via moneygram cash collection

All right. Thank you so much, sir. So the bank gave you dollar or they just converted immediately to Naira?

didymario7:


Unfortunately no. This is why the policy is not likely to make a difference.

And this is my grouse. It has to work both ways. You cannot block one channel and leave the return path open. It doesn't make any sense.

I'll agree to receive dollars as naira at current value but I'll be passed if I want to send naira as dollars and you tell me no. I'll have to look for a way to ensure both directions are flowing for me.

saasala:


You are not getting it.

Dollar is coming in, the government collects it from you and give you Naira. Govt now decides to use the dollar in the best way they deem fit. Shey you understand now.

And when I need dollars what happens ?

Where will black market get dollars from now..jesu

armadeo:


And this is my grouse. It has to work both ways. You cannot block one channel and leave the return path open. It doesn't make any sense.

I'll agree to receive dollars as naira at current value but I'll be passed if I want to send naira as dollars and you tell me no. I'll have to look for a way to ensure both directions are flowing for me.

This exactly why the black market exists!

kowalsky:



It's very simple the Nation is bleeding cos of the persons in power. It has absolutely nothing to do with dormiciliary accounts or loopholes around FX remittances. The current FX and preceeding FX capitulations are a symptom of the problem, not the cause of the problem.

Mass exposure to domiciliary accounts occured when restrictions were placed on Naira cards for international payments. Before then dorm accounts were not as popularised or even as useful, even when the Naira was historically bleeding value.

If the Government dares to be transparent about its fiscal policies, it would befuddle Nigerians how much Naira was printed between this time and the eve of the last elections.

What I'm saying is there's practically no way the Naira would shed value this crazily just on account of you and others saving your monies in USD. There is too much Naira in circulation, printed at will by crass nepotists at the helm of affairs and that's just one of the organic problem.

I'm sorry for being brash and uncultured with my earlier response. In most cases you're interacting with paid political trolls on Nairaland, been tuned to tune my response to something that resonates with them.

Now let's assume we want to fix this problem, again your approach is basically treating the symptoms instead of focusing on the organic disease.
The reason there's a thriving black market for FX, ergo spiralling rates for USD, is because the current official FX market is illiquid. If you tighten your grasp on the black market, you'll only create increased demand cos the assets floating on the black market will be limited. With the assets available on the official market also scarce the end game is even more disproportionate loss in value for the Naira compared to the Dollar.

With these policies, the result will be even lower USD supply to Nigeria, again, this has been shown to be the historical natural history. because guess what you can't force people to convert their USD into a currency that's currently in a nose dive.
People (at least the significant majority) will find ways to circumvent these policies to either secure their USD or get Max value for it at the expense of the Naira.
People will still convert thier Naira assets into USD type assets - many avenues for this including crypto.


I'll go on a limb to say anything sort of burning this country to the ground and starting afresh so we don't have leaders whose sole interest is lining their pockets and who actually care about people; and a populace that's not so lukewarm and uneducated about how fvcked they are will still fall under the coffers of treating symptoms of a malignant disease.

To save the Naira. Nigeria needs a better fiscal policy. Fiscally responsible and intelligent leaders. An educated populace. A total overhaul of the economic system so the country can actually register a trade surplus for the first time in its modern life.

.


Well said.




On a side note. It's been long I started a thread on nairaland and read it to the end. I enjoyed reading the points and counter points

No adverts or beggars, the tribalist gave up by page 2. Serious people continued the discourse. This is how a thread should be sticking to the point and not being derailed. This is the nairaland of old

Seun take note.

The government officials want the dollars to steal - so as you send in your hard earned dollars the government officials use the CBN to confiscate it for themaelves to share while they over print worthless naira for your family and friends to use

its like taking your hard earned dollars and giving your family members monopoly moniey called the naira 😂😂😂😂😂 to spend

Ttalk:
Good for the economy.

A government that is bold enough to remove subsidies should not be afraid of any backslash that may arise from any measure to save the naira.

Let all remittances be converted to the naira equivalent so the government can have enough dollars for people doing genuine business in need of dollars.

All domiciliary accounts with idle dollars should be taxed.

You are criminal because you are looking for where to steal from people's sweat. Dom Accounts is not the reason for why exchange rates keep shooting up.

I don't know why a lot of you just speak English and don't understand basic economics...

In all said and done, tell the entire forum one policy that has encouraged the influx of dollars into the Nigeria economy... instead what do we have? businesses are shutting down and exiting Nigeria since 2015 till date, got even worse under Tinubu because he has no international tentacles to execute anything.

But dunces pick up their phones and type English without substance.

As long as there is no consistent inflow of dollars into the Nigerian economy whereby supply is more than demand of the dollar, you ALL are wasting your time... if you like freeze domiciliary accounts, tax domiciliary accounts... NOTHING WILL IMPROVE.

BitterTruth01:
Lol look at them

This is why you 9-5 job workers should stick to civil service and farming and let capitalists run the economy .

You people from that side are naturally not entrepreneurs . You have no idea how to run a business , how will you run a country ?

Stick to your salary Jobs, you say no
Stick to farming , you say no
Stick to your carpentry and artisanal businesses. , you no gree .

You say you must run the country. Say you dey sophisticated. But you think a country can grow under a socialist system of welfare benefits , and government patronage and control . A palliative economy while free enterprise suffers .

Instead of turning the country into a production. base , na to dey shook eye for other people money. Is that the best you can do ? I dont blame you tho. You cannot give what you don’t have .

But go and do your research, those countries that went the way of Karl Max and Lenin , where dem dey now ?

God bless yoi. I just said the same thing minutes ago before seeing your comment. You highlighted what is generally wrong with many of these Agbadorians... They don't understand business or basic economics, which is the fundamentals upon which the complex economic systems are built... yet, they are the most opinionated on a subject they do not understand..

No reasonable business savvy person will talk the way they do.

furking clowns they are.

Yoo

Seriously?, it's been a long time since I sent money to Nigeria as bills chock here oo.

Throwback:
The next step is to outlaw forex processing for foreign education for a minimum of 10yrs.

Any Nigerian that wants to be educated abroad should look for the money abroad.

We have schools here that can take those huge amounts of Naira we employ to buy forex for UK or American or Canadian education.

We need to jump-start our tertiary education system with better infrastructure, improved quality of education, improved salaries, and improved school fees.

Tough times require tough measures.

I may not always agree with some of the things you've been writing, but damn, this is good

As someone said, a government that could damn the consequences and remove subsidy should not be afraid of taking other tough decisions

If I may, what about some legitimate importers, seeing we don't produce a lot in Nigeria (atleast for now)?

Throwback:
Very good!

We don't spend dollars in Nigeria. Collect the naira equivalent and spend.

Why government will tolerate that rubbish is quite puzzling.

Nigeria is about the only foolish country that tolerate that nonsense. No sense of economic security.

Next is to ensure domiciliary accounts only get credited with foreign currencies from international transfer to cater for those who work rotations abroad or those who work remotely, and once the account is credited, any amount beyond a certain threshold should be converted to Naira, while whatever is left should be taxed at a monthly rate that ensures that the money is reduced to half of what was left as a foreign currency in the domiciliary account. That will help discourage any plan to retain forex as a means to store wealth in the domiciliary account

This double blow will ensure that those stockpiling forex cash do not have anywhere to offload it within the Nigerian economy.

All forex trading outside of the banking system should carry life imprisonment for economic treason.

I can vouch that 50% of all the forex trading going on in the past 6months, is not serving any economic purpose besides storing wealth.

With this your Pleistocene-age economic advice, international inflows via Nigerian banks will drastically take a hit and go down less than 40%.

I expect an upsurge in the opening of Dorm accounts in Benin Republic, Togo, Niger and Cameroon. Crypto will take huge chunk of those funds. Other alternatives outside the banking system will be explored. Your loss in the long run.. The dollar scarcity will even be worse than envisaged, and will keep rising in value.

Buhari and Emefiele tried your dinosaur-age policy of confiscating people's dollars in their accounts butt failed. You, Cardoso and Tinubuu will learn the hard way..

cjrane:


In this day and age when you can contact people in America via WhatsApp, they are bringing back this policy that stopped dollar remittances into Nigeria. They have just opened business again for those who would ask you to give them the dollars in America and then they will transfer the agreed naira equivalent to your loved ones in Nigeria.

Ultimately, Nigeria loses on the dollars her people would have sent into Nigerian banks. The dollars remain abroad while the people in Nigeria who need dollars to fund their accounts abroad are merely asked to pay naira into an account in Nigeria and they will credit your account in China! So the dollars never enter Nigeria.

Leave them. I have found a new reason to cut off all the people I have on my payroll. After 4 years of great Tinubulation, if they survive, they will vote with their brain next time.

Goodnewsforlife:
see this illiterate

You that is literate, look at what you wrote if it makes sense

Ghana banks have domiciliary accounts oh. Trust Nigerians, we will soon go to Ghana, if this one no pay
https://www.monito.com/en/wiki/best-dollar-account-in-ghana

Ttalk:
Good for the economy.

A government that is bold enough to remove subsidies should not be afraid of any backslash that may arise from any measure to save the naira.

Let all remittances be converted to the naira equivalent so the government can have enough dollars for people doing genuine business in need of dollars.

All domiciliary accounts with idle dollars should be taxed.

How about those of us who save our money in dollars. Should we convert it to Naira with the serous mismanagement we've seen them operating on our economy?

Buhari sold our oil into the future and the money has already been spent. Who accounts for this? Is it the Government or the hardworking citizens?

Is it to my advantage if I save some of my earnings in Naira rather than dollars?

Keeping and holding USD for over 90 days should be banned for domiciliary account and any fintech company. We need policies to discourage USD speculations.