₦airaland Forum

MadamExcellency:
As I always say, Buhari is not business friendly. The CBN is keeping the forex for Dangote, notwithstanding that some of his business interests in other African countries is sapping our scarce forex.

Forget about the soundbites, Mr President's standing order to CBN cannot be overrule hence Erisco should approach a commercial bank for a higher exchange rate and consequently transfers the cost to the consumers.

well it's not as easy as you pointed out, erisco products are slightly higher than most of the imported tomato brands we have, he is even managing to stay afloat with a higher price margin, if he decides to obtain forex exchange from the banks at a higher rate, it will further dampen his woes he has already accumulated.

OBALORLA:
lol... I don't think so buzzy1...

it sounds funny right, there's a hilly terrain in a local government at Enugu state. inside the village, there was a place we were told we can't used gadgets there to snap the water or the environment because our camera will go faulty. if this is true or false is what I don't know. but those indigenes believe in it strongly. maybe that's why your own pictures got spoilt when you got home hehe

my brother that same ikorodu area na I'n we FAM take escape too ooh unhurt, no scratches. for this recession ni na I'm gbese re oh

abbey621:
Learn to read boy, learn to read! You can see that he had no electricity and was trying to fix electrical wires to get electricity. Read boy read!!!

thanks brov, I went back to read it properly now, lol. I guess I was too quick in jumping into conclusion

no body here has been able to explain how someone can get electrocuted from fixing a gotv antenna or cable....I mean this gotv antenna is what boiz do freely in their rooms at higher institution or even at their homes. intact I have held the antenna of a star time antenna while I plugged it to the TV to test if it was working and nothing happened. I still don't understand how she could get electrocuted from a gotv antenna or cable. something isn't right here

gory24:
So I went to First bank today,armed with all the informations I have gathered from this awsome thread.I watched and smiled as the banking officer tried to play smart on TB rates, and then I started talking,when iwas done,the Lady said; "Oga I think you should have been a banker" ..God bless the brilliant minds that started this thread,as I was a rookie in TB when I came in here,nw I am very well informed..Thanks to every1 for keeping this thread alive..JahBless.

so first bank let you bid yesterday against today? over here at my location, It proved negative. said it ended last week Friday. interesting

Femiobat:
Zenith bank is very funny ooooooo. Imagine the account officer saying that the bidding for tomorrow has already be collocated since Friday! So those that bid today will not be treated. Hmmmm Zenith bank Na oooooooo

that's weird because I was at zenith bank yesterday and the person I met told me , it was still on but they would stop collecting forms when its 11am. Meanwhile first bank didn't even answer me gan, said they stopped collecting forms last week Friday. so I am surprised zenith put you out except you arrived the bank premises very late....waiting patiently for the next auction date

unite4real:
Yes. Ensure your instructions get there before 12 noon on Tuesday. If you have the time, follow up your document until it's sent to treasury department in Lagos. These bankers can be funny at times. It will profit them when you are not successful by either a failed bid or your seemingly late arrival of your instructions. Before 12 noon on Tuesday is still within acceptable window.

My 1 Naira advice is for you to complete your process before 10am. Don't give them reason to present excuses. If you target 12 noon, your bid may not go through by reason of lateness

okay thanks as early as 8am, I will be there tomorrow. I have the form filled already

unite4real:
How did you calculate the figure to conclude its robbery.

Imagine TB of 1M @18% for 1 year. Interest is N180, 000. Now 0.125% of 180k is N225. This one no reach two bottles of Malt. How is this robbery Pls?

hmmm this charge is quite high oh, by my calculation over here I will debited much bugger than 225. anyways unite4real, seeing that Monday is public holiday and Wednesday being the auction date. will it be possible for first bank to accept my bid by Tuesday?

Naira landers without hearing his own side of story jumped into conclusion. saying how potent traditional religion is, how Christianity can never match the religion of our ancestors. saying all sorts of gibberish just to prove that the man was truly stuck in the shrine.
Now that he has come out to give his own side of the story, instead of people to reverse the shot and talk about how non potent African traditions is, how Gods power will always prevail... they shift goal post and talk about his belt instead, hehe. NL a place where the weak in mind can easily be corrupted.
never jump into conclusion without hearing the other side of the story, I mean NEVER!!!

contrary to what most persons has posted here about first bank not accepting ones own rate, my case seems different. first bank permits that I could state the rate I want rather than go with the banks rate.
and pls when is the next auction date?
could 13.5% be suitable for 91days?

Young03:
they assembled it not that the manufactured it


na them manufacture the engine?

see as you just showcase your dull brain, you and those that liked the comment.

jpphilips:
Your points sound valid but I have a funny feeling you enthrone the Bank's interest above the interest of the average Nigerian, your position is in tandem with the CBN, which tells me that it is one of those moves the CBN employ to save their interests with the banks.
Did you forget that "Low forex inflow" like you hammered triggered another monster called "low revenue" for the government which necessitated tax increase?
If you lower tax, how do you compensate for the revenue loss for the Government? you can not be asking the Government to meet up with its wage obligations and proposing tax cut, it's a total conflict of interest. Government wages alone is a value chain stimulus.

I support a lowered interest rate, the CBN's arguement on "forex pressure" is too weak to be taken seriously. How is the CBN meeting its forex obligations to manufacturers to be jittery of further pressure? he that is down fears no fall.
If Emiefele is scared people will take loans and import stuffs (forex pressure), has he considered that lower interest rate will not only spur importation, it stimulates SME's who are contractors to the manufacturers thereby keeping the manufacturers afloat, considering the amount of goods we lost to importation bottlenecks (actual cause of inflation), it behooves common sense to prioritize our manufacturers because they are the last source of goods we have now.
If the bottle contractor to NBL does not supply, how is NBL supposed to produce beer? even if CBN doles out $$ to NBL. However valid your points are, it still appeals to me very selfish and insensitive, We stand to gain more from lowered interest rate than otherwise.

The angle where the CBN said its current policy has attracted $1b so far, does it occur to you that these type of "foreign investors" do not invest in the real sector of the economy, they add absolutely nothing to our socio economic value chain, yet we prioritize their blood money over the well being of hard working Nigerians?

They are international blood suckers who feed on the carcass of dying economies, look at what they did to Greece, so long as the interest rate is high enough to accommodate their risks, they are more than willing to invest, in the short run, we may have the liquidity, but at maturity, you will regret taking their money, they hardly create jobs nor have physical taxable structures nor corporate social responsibility, they are what I call them, "BLOOD SUCKERS".

Be reasonable bro!!

loool at blood suckers. yes you mean the foreign portfolio investors, its true their investment isn't into the real sector but they are the easiest to attract. be it fpi or FDI we need any form of foreign inflows.

then speaking about the tax increase, yes I understand that low foreign inflows has lead to lowerbgovt revenues. according to tunde fowler, the man in charge of FIRS he opined that he would INCREASE the Tax net and not increase the tax rate. so that is what we need, how to increase the tax net so many people can be caught in the web of the firs. increasing tax rate just means impoverishing the people more in this trying times.
however you are right on the bloodsuckers, we need more of foreign inflows that will invest in the real sector because those are the sort of investment to boost the economy. however, we need either of them now just to boost forex inflows. I like your reply very much tho

mrdan:
Banks interest rates are set by the Central Bank, if the central bank lows interest rates, the banks have no choice but to follow.

Both the Finance minister and the CBN are correct on their standing. The finance minister choose to reduce interest rate to stimulate the economy so that people can borrow more money.
"
In general, as interest rates are lowered, more people are able to borrow more money. The result is that consumers have more
money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest
rates are increased, consumers tend to save as returns are higher. With less disposal income to spend as a result of the increase in
savings, the economy slows and inflation decreases.

The central bank will raise interest rates to reduce inflation. Conversely, the central will ease (or decrease) rates to spur economic
growth.

http://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp?
ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186

http://www.investopedia.com/university/inflation/inflation3.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
"

The CBN also choose to retain or increase the interest rate to invite foreign investments.

thank you for this.

Nalikedis:
Huge forex inflow from where or to do what? okay to buy products from company that are bankrupt as a result of high interest bank loans... Transportation fare needed to be reviewed...by who? Buhari? when transporter borrowed at lending rate of 30+% from GT na Buhari go help him pay back nah. Electricity tarriffs are high...sure, because power companies needed to raise fund to invest into infracstructure, and since they are scared to approach the banks because of high lending rates somebody must pay nah... Tax incentives to manufacturers? Like they pay any tax before...Guy... No body run manufacturing on a high lending rate in a market? economy like ours and stay afloat for long. You can say anything or provide any data to win argument... YOU won! fine...but let common sense prevail. US, Japan and China cant set her rate at below 5% and us have ours above 20% and expect a better result. No tax incentive will bring back Dunlop that left our shore in 2012 at the height of oil boom. Since our lending rate has been left this high, most of indigenous manufacturing coy has gone under.

we have had high lending rates even during Jonathan and companies were posting profits. so no be today!
what is the inflation rate of USA Japan and China?
have you wondered why companies are finding it so difficult ever since oil price fell?
its to show you how much Nigeria economy is related to forex and not rates per we
Japan has reduced interest rates but their debt keeps increasing yearly. bro believe what you want, I am tired of replying comments.
we have had high interest rates for over 6years now and companies posted profit. ever since we had oil bursts, economy is all shaky. connect the dots!

AZeD1:
Actually the CBN can coerce the banks given guarantees.
There's a CBN agricultural product loan which is 8%, this can be extended to manufacturers too.

Speaking of manufacturers, one of their biggest complains is the high interest rate.

http://independentnig.com/manufacturers-decry-high-interest-rates/#

Remember the country also suffers from a high unemployment rate and the best way to take care of that is by encouraging people to start small businesses.

It's a case of being between the devil and the deep blue sea and in my opinion, the best way is to reduce interest rate.

the CBN cannot do jack sh.it bro!
CBN is the regulator of bureau dey change but yet its policies is weak to determine the movement of forex in the parallel market. so much for a coercing regulator right
CBN can only but appeal to banks to lend to the real sector but not coerce.
few months ago reports had it that Skye bank was in a precarious state because of their high npl ratio. first bank has a high non performing loan portfolio. now do you think banks will want to loan money to every business man, no!
the banks are scared of further default, the risk of business in Nigeria is among the highest in the world. so their fears are very understandable.
sometimes cabals and unions purposely inflate prices at ridiculous prices.
interest rate was reduced in Nov 2015, the first time in over 6years. why didn't sanusi think of reducing it then?
yea the rates are high, yes it ought to be reduced
but it cannot move without the movement of other policies. MPR policy alone cannot, I repeat cannot stimulate growth in nigeria

Nalikedis:
Manufacturer will produce at cheaper rate, when bank loan already mae it difficult for them to compete?

yes it should reduce. the interest rate was increased by just 2%, so if I used to take loans from banks at say 25% now it means bank will charge me 27%.
so if I am given a tax incentive, let's say I used to pay a tax of 10% on any imported raw materials, let's say I was given tax free import. it means I'll will say 10% of the actual cost of my business.
can't you see that the impact ought to be felt in the price of commodities. but the cost of production is high in Nigeria not only because of high interest rate, other factors too I mentioned above

AZeD1:
Actually, you are the one that is wrong. There's no way the economy can move forward at 22% interest rate.
What the CBN governor should do is reduce interest rate, coarse the government into allowing banks that lend to the real sector have access to funds in the TSA.
The poorest of the poor(hawkers and market women) in this country don't pay tax so how does reducing tax help them?
Most states have not paid salary so even if you reduce tax, it doesn't help people who will not see the money.


We need to generate jobs and improve the manufacturing sector, we can deal with inflation later.

inter bank rate is 14% not 22% to start with.
loan rates at bank is about 27-29% so I don't know where you conjured up 22%.
secondly CBN governor cannot coerce the bank, the bank will only lend to those they feel are credit worthy or have tangible collaterals, why? their non performing loans are steady rising
thirdly you don't know how tax incentives help the poor?
the commodities that the poor purchases will reduced if the manufacturer will produce it at a cheaper price
the road side sellers will be freed from those small small payments they do in the market, etc
fourth, talking about salary is where CBN has urged the f.g and state govts to improve in.
since July MPR was raised to 14%, 1billion dollars was realised through foreign inflows. reducing it now will chase away those inflows; what CBN has been struggling to get since
what we need most importantly is HUGE FOREX INFLOW.
reduced interest rate has been tried before with nothing to show for it, its nothing new under the sun. we need fiscal policy, trade policy, and other sectors to come together. you cannot clap with one hand bro!

gboye1999:
Not true.
The natural thing to do in this scenario would be to reduce rates, and the ratio however if the regulator observes that conssistently the financial institutions prefer to deploy the attendant liquidity to enhance short term gains to themselves in forex deals rather than agriculture and real sector then it seems the regulator is also handicapped in terms of pushing its objectives through. In order words, it's really not in control of the way the banks handle business.

reduce the rates and have more people access the naira right and what happens? inflation reduces? lool
have you forgotten inflation means too much money chasing few goods, inflation cannot reduced if other factors aren't considered
we need
- huge forex inflows in the country
- the transportation fare needs to be reviewed
- the electricity tarrif is high with no significant improvement
- tax incentives should be given to key manufacturing item
these four things are to be checked, reducing MPR rates while these factors aren't touched will do nothing but further increase inflation.
all hands need be on deck. emefiele cannot do it alone

helovesme:
your long rant only shows how poorly educated/informed/experienced/exposed you are.

its a pity you do not understand the effect/correlation on lowered interest rate and inflation.

since you have chosen to throw insults as part of your arguments on an interesting topic, you are best ignored. when you learn how to argue intelligently without recourse to insults, then you can quote my posts and then i will school/educate you properly.

its also a pity you don't understand the relationship between inflation rates and inter bank rates?
i don't know what is wrong with you people, didn't you read where emefiele said he once reduced rate and nothing happened? do you think you are more brilliant than he is or you are suggesting something new?
if you cannot understand that emefiele is doing you a favour by retaining the rate thus having a negative net interest of 3% then I am sorry to say you don't even understand the topic at all. you stylishly want to run away from further discussion because I have opened the flaws in your comment.
Is monetary policy the only key driver to the economy , what about the fiscal policy. how does adeosun intend to help the economy. how?
because you and I know that they key reason inflation is high today isn't truly because of the interest rates but simply lies a lot on the forex.
once forex floods into the market, cost of items will reduce.
like I said: interest rate was once reduced, yet inflation rose. but then I don't expect you to know that because you neither trade in the money market nor follow the trend, you just jump on the bandwagon to abuse this govt.

helovesme:
See eh. The whole thing is just annoying.

Bank of England's interest rate was 0.5% after the 2008 recession. After brexit vote, it was reduced to 0.25%. The US treasury also cut down interest rates during the recession.

Yet Emefiele is adamant about interest rate cuts.

when I read at comments like this one nairaland, I baffle at the level of reasoning. so so irrational and myopic. I can't believe you even gathered likes for this low level thought.
yes USA and England's interest rate is between 0.25% and 0.5% but do you know their inflation rate?
don't you know that inflation rate and interbank rate move hand in hand.
at USA the inflation rate currently stands at 1.1% while at england is at 0.3%. now compare it to Nigeria
where inflation rate is at 17.5% meanwhile MPR rate is at 14%, which country is lagging behind? which country is more generous in its rates if not Nigeria. you were so quick to dish out the inter bank rates without checking the inflation rate yet you feel you have made an important comment.
how will investors invest in the money market, when your interest rate is at miserly 14% meanwhile inflation is 17.5%, how will the banks keep up? or don't you know that they will be losing money by over 3%
emefiele is right, in the actual sense if he wants to chase inflation he should even increase the rates to meet up with the rising inflation but then what we have is stagflation which is were adeosun comes in, he can't be chasing inflation when nothing is done to stimulate growth in the country.
adeosun like obiano has done should give tax incentives and lower tax rates for certain commodities, that way inflation will be lowered thus reducing the MPR rate overtime.
don't mention USA or england here again, when Nigeria is even doing us a favour by having a Net interest rate of -3%. Rubbish

Phizzlephizz:
Bro I don't need lessons on financial management, Atleast not from you.

And the people you know don't bother because they don't need it, and can make do with cheaper phones. But if you earn 350k n u've been working for over a year or two u can afford to buy it. It's just $650

no problem , Udo!

Phizzlephizz:
If you're a working class and you're earning over 350k monthly, I don't see any reason why I can't decide to buy an iPhone 7.

But if you're a Nigerian and u don't have high paying job or maybe u're a student and u buy an iPhone 7, it's been stupid cuz all u tryna do is show off, feel important, intimidate, and let people talk about u, which makes ur priorities so so misplaced.

so if you are earning 350k you feel you now have enough dough to buy an iPhone 7. baba you need a lot of lessons on financial management because people who I know that earn over 350k from passive income not salary o, don't bother about owning the latest gadgets.

a quote says 'if you are going to do something bad, it better be with a good reason otherwise you will not be worth forgiving
this fella may be forgiven or given a lesser punishment because his reason for crime is something everybody is feeling hard but then
the bible makes us know that we are tempted from our desires, so for you to commit a crime you have already given into your desires that you have been nurturing in your heart overtime.
in essence this fella has been nurturing the desire to steal, his reason given is just to seek mercy for the aftermath

for the people wey dey believe this story I swear una brain dull die, bloggers will just wake up fabricate stories and you all will swallow it because they know the average 9ja person online no get sense to reason well. yes ihenancho earns 85k per week but do you known that about 48% of that goes to TAX. now someone stated below that he was on a 20k wage, you guys forget this weekly wage is PRE-TAX.
no wonder blogging dey sell in Nigeria because una can like to believe rubbish

yes these work but how about in the open market, negotiating with a trader. lemme tell you one secret we traders do
we make you feel inferior or throw shade at you. we say things like, haaa big girl like you see what you are pricing 1k, see the type of phone you are using self abeg buy it oo coz you big pass am. now out of shame, most of the time the person succumbs. or we say
oga haba why you dey price like this, this shoe price you big pass am now, if to say na another person dey price like this now I for understand but you big pass like this........this style is used a lot in the open market. some just outright abuse you eg abeg no touch that material, you no fit afford am, ask for cheaper ones. out of lack of self-esteem, the customer even though steps out will come back to buy it to prove to you he/she has money.
NB: this works on people with low self esteem or people that like to show off and funny enough majority of Nigerians fall into the category hence it's effectiveness

I personally think that the stats lie. look around you and tell me if inflation has gone up by 50% in the house hold items you buy from January up untill now.
basic things like bread, rice or egg has gone up by 50% or more yet inflation reports says 17%. I believe the numbers are fraudulently reduced so investors wouldn't flee.....inflation in Nigerian is about 40% based on what's on ground. I believe someone on Nl understands me

op shey you don look at the price in, infinix hot 3 and hot3 pro(2gig ram) sells for 30-33k, meanwhile the techno l8 sells for 40k, a difference of 7-10k
I hope say you dey reason the price too, no be to just ask which one better.

maggilove:
i bought mine yesterday 30700.

it seems I bought mine the cheapest so far ,
29,800 for hot 3
350 for delivery
total 30,150,
Phone is just a week old
those who bought Thiers 35k, dem don guy una oh
pic taken from my hot3
plus the front camera is very impressive for a phone with just 2mega pixel

all I see here are comments from bittered guys who have filled their souls overtime with jealousy from Linda ikeji success story.
I mean how can you compare a media personality with one who has nothing to do with the media. how many women today in the media can stabd toe to toe with Dora akunyili. Linda has put blogging on the lips of Nigerians, she has helped to improve lives through her monthly give away....she just opened a radio an TV station of which she will employ nigerians thus helping to reduce poverty rate, she was able to builds mansion in an area reserved for creme de LA creme of the society..... no matter what you think, Linda is a success! if I had a daughter who attained such heights, i would be proud of her. let's stop this foolish comparison and learn from their work ethics

any idiot can wake up to criticize a thing but it takes someone of sound mind to be constructive about it. Op just talked and talked a and talked without giving solutions or recommendations, that's what we call hating. Mr op if you dont have an alternative style, please shut up. meanwhile no wedding event has women wearing that kinda agbada as asoebi, its a big lie.... nobody wears that as asoebi....