successmatters:


As more pharmaceutical companies are leaving Nigeria, we continue to be more import dependent on a daily basis. The disease here is lack of production, dollar scarcity is just a small symptom.

On the contrary, our capacity is bound to increase.

Now we routinely use our own substitutes for augmentin for example

Straybullet:


You're quite mature, that was rude

Thanks ojare

Strafudeen:


In medicine we don't only focus on the underlying issue, we also take quick fix steps to save a life

If you're treating malaria and the patient is convulsing, you don't just focus on the malaria, you quickly give something for convulsions to prevent death while your antimalarial works.

That is as it should be.

Main cause or not, the BDCs are now a serious cause for concern, as a link between unregulated black marketers and the regulating banking sector.

A very sick situation is on our hands

Much like police and criminals teaming up to do a heist.

Abeg BDCs must go

BDC are not a serious issue.. They are not

CBN is simple

If you don't know how to manage it short term simply say so let's tell u how it's done

Strafudeen:


On the contrary, our capacity is bound to increase.

Now we routinely use our own substitutes for augmentin for example

Until our capacity increases, the symptom will be getting worse. And cutting off the small supply of medication while there is little production and no withdrawal of dollars from banks, there is no hope in the near future.

successmatters:


Until our capacity increases, the symptom will be getting worse. And cutting off the small supply of medication while there is little production and no withdrawal of dollars from banks, there is no hope in the near future.

Chicken and egg situation.

Way forward is take any relevant action immediately possible

Bdcs must go

mrvitalis:

BDC are not a serious issue.. They are not

CBN is simple

If you don't know how to manage it short term simply say so let's tell u how it's done

This thread is for you to share your views.

But don't say BDCs are not the issue, do you know how much capital is locked up as dollars in private hands because they know they can quickly run to bdcs and clean them up

BDCs are part of the issue

Strafudeen:
I just saw a thread where his excellency Peter Obi was expressing disapproval on actions taken to reign in the bureau de changes in nigeria.

I hope I misread him, but if he is against the reforms implemented to curb the racketeering going on at those BDCs and their banking and black market allies, then I disagree.

I even advocate a total suspension of all BDC activity in nigeria.

Mpa nnukwu...onye nna...Peter obi...senior man.

This one no follow.

Our economy has been far too much dollarised, desperate times demand desperate measures.

We have to save the country at any cost.

Bureau de changes are a major part of the problem because as long as they freely do as they like, people who steal dollars know exactly where to run and clean it up in a few minutes.


They have to go.

If tinubu doesn't want to end them, then let him regulate them out of this their Criminal conspiracy with our thieving bankers and the touts on the streets with dollars and naira notes wrecking the economy.


Thanks onye mpa Peter obi, you're still the man though.

😃 😊

This one that you are criticising your Messiah , I hope your tribes men whose brains have been conditioned to accept everything obi said will not come after you?

Strafudeen:


This thread is for you to share your views.

But don't say BDCs are not the issue, do you know how much capital is locked up as dollars in private hands because they know they can quickly run to bdcs and clean them up

BDCs are part of the issue

BDC are even the solution. When you lock the banks like you are advocating and people cannot get dollars, godds can get inflated to up to 2000%

Strafudeen:



Some end sars police men were good but that didn't stop the bad eggs tarnishing the whole group.

Dollarization is now a national emergency on an existential scale.

This thing will destroy this country completely.

Let the surgery begin already.

Cut off what's decaying , some good flesh may go too, but that's the cost of allowing nonsense run amock for a long time

End sars was masses revolution to federal government decay

Bdc is not a governmental agency but business that oils the economy you can't go and shut them out without providing another efficient way of trading fx.

Comparing end sars with bdc is just being plain foolish and sheer stupidity


Let's see how the rascality goes.
You will still come and cry 😭

IduNaOba:
So thing that's in every place you go to
"Even" dubai
Nawa o

not very place
Even Dubai? Why Even?
So Dubai is now a benchmark of advancement
Hmm
There are many countries you can live in and travel to and from and not touch cash for the whole year that is 100% cashless
Even public buses take cashless payment.

It is usually a hallmark of backwardness when it is such a major thing.as in Nigeria

successmatters:


BDC are even the solution. When you lock the banks like you are advocating and people cannot get dollars, godds can get inflated to up to 2000%

Who is advocating locking the banks

YourMrBoo:


End sars was masses revolution to federal government decay

Bdc is not a governmental agency but business that oils the economy you can't go and shut them out without providing another efficient way of trading fx.

Comparing end sars with bdc is just being plain foolish and sheer stupidity


Let's see how the rascality goes.
You will still come and cry 😭

Be respectful with your language please

I'm not advocating rascality. But BDCs are the natural first place to begin a quick fix of the uncontrolled and rampant dollar racketeering.

Strafudeen:


Who is advocating locking the banks

You spoke against people running to BDC to clear their dollars, meaning that if you have your way, you will block banks so they cannot do that easily. That's a way of locking the banks, blocking free trade.

Strafudeen:


Be respectful with your language please

I'm not advocating rascality. But BDCs are the natural first place to begin a quick fix of the uncontrolled and rampant dollar racketeering.

Respectfully you're wrong. Fixing the economy and shoring up foreign reserve should be the real fix. Focusing on quick fix won't get us nowhere. You will get the needed results but it's all wash. Not gonna last


Targeting bdc should be the last menu and also providing a system that can weed the wrong guys out. Not shutting them down completely

YourMrBoo:


Respectfully you're wrong. Fixing the economy and shoring up foreign reserve should be the real fix. Focusing on quick fix won't get us nowhere. You will get the needed results but it's all wash. Not gonna last


Targeting bdc should be the last menu and also providing a system that can weed the wrong guys out. Not shutting them down completely

Do you know a malaria patient can die of convulsions you refused to quickly stop, while receiving treatment for his malaria

Quick fixes address an area rapidly.

The main treatment must go on

But bdcs are a problem and they must be handled

successmatters:


You spoke against people running to BDC to clear their dollars, meaning that if you have your way, you will block banks so they cannot do that easily. That's a way of locking the banks, blocking free trade.

Nope never meant that

We should never run a system where people can have foreign currency to such a tune as to threaten the economy and security of the nation.

Money supply is critical.

The CBN regularly mops up excess liquidity.

But with these rogue dollars out of reach ,you just can't control money supply.

These BDCs are the confidence people have to stash so much, knowing its easy to change or launder.

The CBN wouldn't be so lazy or ignirant in undermining national economy as to do what BDCs do

Strafudeen:



Do you know a malaria patient can die of convulsions you refused to quickly stop, while receiving treatment for his malaria

Quick fixes address an area rapidly.

The main treatment must go on

But bdcs are a problem and they must be handled

So they should be shut ..

Good luck with that

Strafudeen:
I just saw a thread where his excellency Peter Obi was expressing disapproval on actions taken to reign in the bureau de changes in nigeria.

I hope I misread him, but if he is against the reforms implemented to curb the racketeering going on at those BDCs and their banking and black market allies, then I disagree.

I even advocate a total suspension of all BDC activity in nigeria.

Mpa nnukwu...onye nna...Peter obi...senior man.

This one no follow.

Our economy has been far too much dollarised, desperate times demand desperate measures.

We have to save the country at any cost.

Bureau de changes are a major part of the problem because as long as they freely do as they like, people who steal dollars know exactly where to run and clean it up in a few minutes.


They have to go.

If tinubu doesn't want to end them, then let him regulate them out of this their Criminal conspiracy with our thieving bankers and the touts on the streets with dollars and naira notes wrecking the economy.


Thanks onye mpa Peter obi, you're still the man though.

😃 😊

You have tried based on your understanding of the issues.
However you must know that Nigeria is a very unique country. They system is flawed and deliberately too to allow criminals, currupt politicians and public servants to profit and thrive.
Not everything you see is as it appears in Nigeria.
Now if the system wasn't flawed the BDCs were simply licensed to provide forex services to the public where for some reasons they cannot use the banks.

They were not meant to be the first option for buying and selling of forex. The banks have the primary function of meeting the forex needs of MDA's, commercial and private customers with the CBN auctioning forex to the banks on the opening of business everyday.

Because the CBN is able to match the deman for forex on the official side, BDC rates will not be too far from the official rates cos supply is there.

However that's not the case. CBN currently cannot meet the demand on the official side
and also via the banks. Regular customers cannot buy dollars from banks so they have to recourse to the BDC.

Now those people I mentioned above including the bankers now exploit the system, they access dollars via CBN and the banks and sell them to the BDC at a profit. That's what Peter Obi mentioned as unproductive excess supply.

The BDC guys add their own markup and sell to the public. The demand is higher than supply to the dollars value goes up whilst the Naira value comes down.

The middle class that have savings in naira panics and rushes to the BDCs to buy dollars and store to maintain its value.

BDCs want more profit so they speculate and fix prices. It works because the official market has low supply. The available dollars is moped up from the official system and sold to the BDC, rince and repeat( Round tripping).

Meanwhile, Nigeria is still dependent on imports, oil production is down, no forex coming in. So supply is low.

That's why Peter Obi is saying going after the BDC is ill advised. Fix the the source of the problem, the symptoms would disappear.

Bureau de changes are a major part of the problem because as long as they freely do as they like, people who steal dollars know exactly where to run and clean it up in a few minutes

.
Gbam!

Bonjovi13:


You have tried based on your understanding of the issues.
However you must know that Nigeria is a very unique country. They system is flawed and deliberately too to allow criminals, currupt politicians and public servants to profit and thrive.
Not everything you see is as it appears in Nigeria.
Now if the system wasn't flawed the BDCs were simply licensed to provide forex services to the public where for some reasons they cannot use the banks.

They were not meant to be the first option for buying and selling of forex. The banks have the primary function of meeting the forex needs of MDA's, commercial and private customers with the CBN auctioning forex to the banks on the opening of business everyday.

Because the CBN is able to match the deman for forex on the official side, BDC rates will not be too far from the official rates cos supply is there.

However that's not the case. CBN currently cannot meet the demand on the official side
and also via the banks. Regular customers cannot buy dollars from banks so they have to recourse to the BDC.

Now those people I mentioned above including the bankers now exploit the system, they access dollars via CBN and the banks and sell them to the BDC at a profit. That's what Peter Obi mentioned as unproductive excess supply.

The BDC guys add their own markup and sell to the public. The demand is higher than supply to the dollars value goes up whilst the Naira value comes down.

The middle class that have savings in naira panics and rushes to the BDCs to buy dollars and store to maintain its value.

BDCs want more profit so they speculate and fix prices. It works because the official market has low supply. The available dollars is moped up from the official system and sold to the BDC, rince and repeat( Round tripping).

Meanwhile, Nigeria is still dependent on imports, oil production is down, no forex coming in. So supply is low.

That's why Peter Obi is saying going after the BDC is ill advised. Fix the the source of the problem, the symptoms would disappear.

Thanks

Yeah but the problem still has to be solved.

Long term solutions leave us all dead in a short while.

Quick fixes are necessary.

Not just BDCs , if we have to place a moratorium on foreign imports, and payments for a while so be it.

We have to grow this economy if we are not to die.

Foreign goods, schools, etc are good, but can be done without.

We are in that dire emergency, let us pull out all the stops now

commoditiesnig:
.
Gbam!

Thanks

Strafudeen:


This thread is for you to share your views.

But don't say BDCs are not the issue, do you know how much capital is locked up as dollars in private hands because they know they can quickly run to bdcs and clean them up

BDCs are part of the issue

There have always been BDC since 1990s they were not is not and would never be the issue

Stop printing money if u want naira stabilizing in the short term

mrvitalis:

There have always been BDC since 1990s they were not is not and would never be the issue

Stop printing money if u want naira stabilizing in the short term

That is choosing to punish the masses rather than the thieving elite


Stop printing money and you end up with the cash crunch of last year

Clam.p down on dollars and you squeeze the high volumes of money unreached by CBN hertetofore

mrvitalis:

Lol Buhari did the same thing did it work ?

Obi is saying BDC people are mere symptoms focus on the real issue

Nigeria trade deficit has been mostlypositive since 2015 yet naira he lost 90% of it's value

Fix the issue, the fundamental issue not going after symptoms

The thing is what Obi is proposing i.e consumption to production, will take a few years to implement and bear fruit by which time exchange rate could have already reached 10k per dollar at the rate it was going.

So a quick fix was needed which is the stringent regulation of Bdc activities to stabilise the rate first and weed out fx saboteurs. Subsequently Govt can focus on the C2P measures for long term improvement.

So far, the clampdown on the BDCs is working as the rate has gone back to around 1.5k/usd. If nothing was done that last week, we'd be talking of close to 3k/dollar by now at the rate it was plummeting and most of the drivers were artificial.

ThierryJay:


The thing is what Obi is proposing i.e consumption to production, will take a few years to implement and bear fruit by which time exchange rate could have already reached 10k per dollar at the rate it was going.

So a quick fix was needed which is the stringent regulation of Bdc activities to stabilise the rate first and weed out fx saboteurs. Subsequently Govt can focus on the C2P measures for long term improvement.

So far, the clampdown on the BDCs is working as the rate has gone back to around 1.5k/usd. If nothing was done that last week, we'd be talking of close to 3k/dollar by now at the rate it was plummeting and most of the drivers were artificial.

Firstly the issue with BDC is a structural issues

U don't need need to arrest them to fix it

Create a presidential statement signed by the president stating how forex should move

From CBN to Banks to BDC

Any banks or banker found wanting state the consequences ( bank is fine 50 billion person who exposes it gets 5 10% ) banker found wanting lose 50% of their pension funds banned from banking/financial industry for life

Make similar proclamation by for BDC...

Make the National Assembly to make this law binding

Send DSS as undercover to captured 100 people and set them as examples ... Bro it's not that difficult everyone would be straight

Strafudeen:
I just saw a thread where his excellency Peter Obi was expressing disapproval on actions taken to reign in the bureau de changes in nigeria.

I hope I misread him, but if he is against the reforms implemented to curb the racketeering going on at those BDCs and their banking and black market allies, then I disagree.

I even advocate a total suspension of all BDC activity in nigeria.

Mpa nnukwu...onye nna...Peter obi...senior man.

This one no follow.

Our economy has been far too much dollarised, desperate times demand desperate measures.

We have to save the country at any cost.

Bureau de changes are a major part of the problem because as long as they freely do as they like, people who steal dollars know exactly where to run and clean it up in a few minutes.


They have to go.

If tinubu doesn't want to end them, then let him regulate them out of this their Criminal conspiracy with our thieving bankers and the touts on the streets with dollars and naira notes wrecking the economy.


Thanks onye mpa Peter obi, you're still the man though.

😃 😊

BDC ain't the problem but the bank MDs are.

Let me give you an instance using our Naira BDC (pos Operators). If we have ATMs readily available where we can get needed cash, would we have much need for pos operators?
If the bank make cash available, not much will be going to pos to buy naira.

Same goes with bdc, if the bank ain't riddled with much bureaucracy and dollars are sold to verified needed hands, this rates would have been under control.

Efficient vetting of dollar buying, monitoring its usage by the buyer and ensuring the dollars are used for the stated purpose for buying it can help control the rates.

Let banks begin to sell dollars but at a vetted, controlled and monitored process.

mrvitalis:

Firstly the issue with BDC is a structural issues

U don't need need to arrest them to fix it

Create a presidential statement signed by the president stating how forex should move

From CBN to Banks to BDC

Any banks or banker found wanting state the consequences ( bank is fine 50 billion person who exposes it gets 5 10% ) banker found wanting lose 50% of their pension funds banned from banking/financial industry for life

Make similar proclamation by for BDC...

Make the National Assembly to make this law binding

Send DSS as undercover to captured 100 people and set them as examples ... Bro it's not that difficult everyone would be straight

Your proposals make sense. I wasnt really referring to the crude arrests in my comment but the raising of bdc seed capital, ban of access to Binance & other platforms where manipulations were going on, etc.

They should particularly extend the restrictions to banks and their CEOs cause they are bdc racketeering enablers.

Note that this is just a short term fix for stability. The sustainable route is to export more and import less.

Very educative thread void of insults and blackmailing.

Mature conversations so far All thanks to my fellow Obidients @Strafudeen @mrvitalis, @Straybullet and @successmatters.



Obidients train we move .......

ThierryJay:


Your proposals make sense. I wasnt really referring to the crude arrests in my comment but the raising of bdc seed capital, ban of access to Binance & other platforms where manipulations were going on, etc.

They should particularly extend the restrictions to banks and their CEOs cause they are bdc racketeering enablers.

First rule of government is don't make bans you can't enforce it would make you look weak

You can't ban bianace you can't ban crypto trading

The people demanding money from bianace are Chinese importers provide dollars cheaper for them and watch bianace scatter

Truth is there is little anyone one can do short term

Floating ab unstable currency got us here

Peg the naira at 2000 yes higher than black market
Hope it would hold and restore confidence

But identifying manufacturers of import substitutes and export potential goods and given them low interest loans to expand production through banks is still the best solutions

Vischy:
Very educative thread void of insults and blackmailing.

Mature conversations so far All thanks to my fellow Obidients @Strafudeen @mrvitalis, @Straybullet and @successmatters.



Obidients train we move .......

Obi has always believed in lasting solutions, let's do it once and for all


Truth is there is no confidence on the naira

There is no confidence on the APC Tinubu lead government to be able to turn this economy around

People who don't need naira ( like me) are changing naira savings to dollars

My radical solution is devalue naira to 2000 this would force us to wait
. This would reduce demand of naira and make it easier to defend

Defend it and this lack of demand would make naira grow to 1600 to a dollars this would boast confidence which would cause panic dollars sells which would then cause more value and confidence on the naira

successmatters:
BDC are to banks what pharmaceutical outlets are to hospitals.

Where there are no drugs in the hospitals, or odd hour transactions, or where banks are distant, business cannot be allowed to suffer. BDC also provides employment.

Peter Obi is right like always.

I understand your point.
But one thing I don't understand about the arrangement with them is what someone here on nairaland was trying to draw my attention to sometimes ago, which is the difficulty in accessing foreign currency in the banks but so easy to access from the abokis on the streets, is it normal

Inspirer1:

I understand your point.
But one thing I don't understand about the arrangement with them is what someone here on nairaland was trying to draw my attention to sometimes ago, which is the difficulty in accessing foreign currency in the banks but so easy to access from the abokis on the streets, is it normal

I agree that its abnormal, but the abnormality can be cured by supplying banks with dollars and ensuring they dispense it, not punishing BDC for the corruption in the banks.

If we make the mistake of driving the BDC underground, the problem will get as bad as drug trade, and this corrupt government cannot fight it. Things will only get worse.