Indeed this is guided deregulation. But the point about allowing non oil exporters access to their foreign proceeds (dollars or other foreign exchange received when someone exports goods abroad) is not entirely correct

What the new policy says, which is the main drawback, is that the person receiving the foreign exchange MUST sell to the authorized dealers at the INTERBANK RATES. This, therefore, is the con of this policy. Why not simply allow someone access to his money to sell to whomever he deems fit, either the banks or anyone, wherever he gets a good deal

You will find that the interbank rates would likely never be the same with the black market rates, due to low availability and documentary requirements banks would need before they sell fx to you. It was this same government that started the nonsensical approach of forcing people that received fx to sell at the then CBN rates to the banks. Now they have moved it to forcing exporters to sell their inflows to the banks at interbank rates

As long as interbank rates are not equal to the black market rates, this in effect is shortchanging the owners of the inflows and I hardly see how this particular provision is a good policy

A word of caution. This policy does not mean the elimination of parallel market rate. Let me explain

What the government has done is to deregulate the foreign exchange market. In a layman's term, it means removing government determination of foreign exchange rates. Dollars that was previously fixed at N197/199 would now be traded in the interbank market, and therefore exchange rates determined between the various banks.

If you take a school fees payment request to bank A for instance, the bank would give you a rate after getting a quoting from a seller (which can be other banks or themselves, if they have stock of fx) and this becomes the rate you would buy the fx for your school fees payment. if you are unhappy with what bank A quoted, you can approach bank B and attempt to get a cheaper quote

Banks can now source for foreign exchange from various sources, including non oil exporters and purchase at the rate they (the banks) are willing to pay, no longer the rate the government said they must! But this isn't really a favourable factor for exporters if interbank fx rates (which is the rate the banks would buy the export proceeds) are lower than what the exporters can get from the black market. The best case would have been to allow exporters access to their inflows and let them decide whomever they wish to sell to, whether it is the banks or mallams on the street!! This is what would boost supply.

However you would find that the interbank rates in foreign exchange would likely continue to trail those of the parallel Market rates. The trick is if the banks have a deep market/stock to meet all the request from customers, which would mean there would be no incentive to patronise the parallel market for fx buyers. Thi is because the bank's rate would be lower than parallel market rates. I do not forsee this scenario likely as our foreign reserve remains low, which is the buffer for CBN interventions. All other sources are already known and utlilized at present so where would the higher fx supply come from?

There are other new features of this policy but I do not think those are of interest to a majority of us here

Isn't it sigma technology the company that collects all Lagos state taxes and revenue? The one appointed by Bola Tinubu and still raking in 10% of all revenue collected by Lagos state till date??

There are some issues with the usage of yuan versus the dollar. You will find international currencies have to be accepted internationally to be deemed a standard of measurement/payment

Germany, Canada, Zimbabwe, Sweden, Australia etc have all adopted these treaties but what trade volume do they really do in yuan comparative to other currencies?

Most chinese exporters would rarely quote goods in yuan. They all prefer a more standard and acceptable metric in dollars rather than yuan

For the local importers, I highly doubt they would want to use yuan. Simply because that means going through banks in Nigeria and hence CBN. That also means full declaration of the value of goods imported and full payment of duties. It for this reason CBN themselves have valid and non valid for fx. Few importers use form M, valid for fx, simply because they cannot afford full disclosure hence have to pay full duty payment , so they can't use banks for remittance when full disclosure and crippling duty payment are mandatory

Similarly yuan also means using foreign reserves. Switching a portion of our FR hasn't changed the fact our FR is low and allocation is managed hence continued scarcity

In conclusion, the chinese themselves don't sell internationally in yuan. Few countries that have yuan usage rarely use it while dollars dominates; our local importers can't afford to go through banks for yuan transfers, due to full disclosure required. Low foreign reserve means even if they do, the queue would still be long (as obtainable at present using dollars). It's like changing a child's name, without any addition of substance

Thank you for reading

Like the illustration, there are good reasons one would use a tax haven to keep your savings and wealth. Tax avoidance is different from tax evasion and for me, I can do just about anything legal to pay less to a capitalist state that only knows how to take but frugal in giving

As long as the monies were legally made, this whole panama thing is a big fat dust. Financial experts all over the world model daily on efficient and most effective ways of wealth enhancement, protection and quantum growth. Indeed a great deal of investment banking is devoted to doing just this, tailoring multiple and complex products to assist the rich to pay less tax and grow their wealth

So what's the fuss

If the funds invested there are stolen, are the authorities where they are taken from blind? Why haven't they noticed that money was missing before this leak?? It is dangerous to demagogue the rich amongst us simply because they are well off, unless we have proof of impropriety

This is shameful. Are we back to the era where oppositions are arrested to intimate and silence them? APC would not be in power today if the previous administration acted this way. Evil prospers when good men keep silent

His response to the question that he can afford to pay for his kid's tuition abroad but many Nigerians can't afford to pay for their ward's is epic : Buhari - Tough Luck

Bevista:
I said that there is nothing that can be done "in the near term". Of course, export promotion can help supply but that is long term. No export policy today can yield results in the next 12 months Our priority should even be import substitution before thinking exports.

Both are needed. And please note there are many exporters that cannot thrive under the current policies and have therefore abandoned the efforts

A huge chunk of the export proceds we used to enjoy has been lost to other countries. Ask staff of most banks and they can confirm the massive decline in inflows of foreign exchange due to the policy. Who in his right mind would work so hard and be denied the fruits of his labour?

Consider if the existing exports are boosted, while the import restrictions persisted. You save money fro. The reduced import and increase foreign exchange from the enhanced exports. Not rocket science.

But rather we are restricting imports (which is a policy intended to enforce local subsitues) while discouraging exports. How then do you balance the books?

It's bizarre

Bevista:
Ordinarily, I should not comment on this thread since Ubah has not mentioned how he would go about it. However, for the benefit of those who might get swayed by his cheap claims, I'll say something.
---
The exchange rate (PRICE of dollars) is determined primarily by SUPPLY of dollars (through exports, FDIs, foreign borrowing, etc) and DEMAND for dollars (through imports, payments of foreign school fees/medical bills, online purchases, etc). The NET flow of these transactions determine the Balance of Payments (BOP) account with the Central Bank. Elementary economics tells us that when demand exceeds supply, prices go up!
---
Coming back to Nigeria, it is well known that oil accounts for 95% of our FX earnings. As oil prices have collapsed from ~$100 in 2014 to ~$30, our supply of dollars has dropped tremendously. This is even worse when one considers that our cost of oil production is ~$20/bbl, meaning that our dollar revenue from oil has dropped from ~$80/bbl to ~$10/bbl. On the demand side, the request for imports are increasing. With such supply shock and increasing demand, there is only one way for the exchange rate to go. This is basic economics and has nothing to do with Emefiele or Buhari, except you are simply being mischievous or grossly ignorant.
---
When oil collapsed from around $147 to $38 due to the 2008 Global Financial Crisis (GFC), Nigeria had a Foreign Reserve of ~$62bn. The then CBN Governor had to spend ~$20bn from the Reserves to meet import demand thereby preventing devaluation/depreciation. Between 2011 & 2014, oil price was above $100, meaning that the administration never had a dollar supply problem and so could maintain a stable exchange rate. Fast forward to late 2014 when oil prices slid to ~$60, the CBN had to devalue the Naira twice within a period of 6 months (Nov 2014 & Feb 2015) because the Reserves were too low (<$35bn) to deplete to support imports. Now in 2016, oil prices are around $30/bbl while FX Reserves is less than $28bn. The supply shock has reached unprecedented levels, yet demand for imports has not decreased. There is absolutely no way that the exchange rate can stay below N250/$. Simple economics says that price will continue to move till a new equilibrium is reached where demand equates supply.
---
There is no policy from Emefiele, Soludo, Greenspan, Bernanke or any other Central Bank governor that can strengthen the Naira in the near term. Except we want to completely deplete the Reserves or go to the IMF to borrow SDRs just to meet import demands. Brace up folks, if oil price collapses to $20 (thereby increasing the supply shock) the exchange rate shall hit N1000/$ and I repeat, this has nothing to do with Emefiele or Buhari but simply economic forces. The only thing that can save the Naira is either for SUPPLY of dollars to increase (through high oil price) or DEMAND to reduce. Since we do not have control over the supply side, we can at least focus on managing the demand side.
---
So Mr Ifeanyi Ubah, you have zero knowledge on what you are talking about. With all the money you made from the last government, you can start by building a refinery or some other manufacturing facility (like Dangote) to help us substitute for imports. That would help the Naira more than you seeking cheap consultancy from the government. Or except you want to broker a deal for the government to give amnesty to your Dasuki-Gate friends, so they can bring out stashed up dollars from soakaways and graveyards to support the economy.

I beg to disagree on some of your assertion. Contrary to your position we do have control over the supply side. Which is by encouraging and promoting exports. At the moment the FG's policies doesn't .

I stated earlier that the current mismatch of demand and supply giving rise to galloping prices present's a unique opportunity for Nigerians to boost export and export initiatives. Woods, charcoal, lead ore, zinc, cash crops abound which we could easily take advantage of to earn foreign exchange thereby boosting supply

But what does the FG do? They force exporters to sell their export proceeds to the already rich commercial banks at the ridiculous rate of N197. This clearly is a policy targeted against boosting export. Pray, why won't prices continue to rise when you are discouraging imports and exports at the same time

Much of what is happening now is a direct product of the insane policies of the present administration. It is an aberration that whenever they do things that worsens whatever is bad already, they readily resort to blaming the previous govt for the result

We are talking about serious disparity in exchange rate. Someone asked: How did we get to here?. To answer this, consider that the issue of stanking oil prices has been hugely addressed by the govt restrictions on several access to foreign exchange, making it almost impossible to have any significant supply of dollars, hence the resulting galloping dollar rates to the naira

Dollar sales to BDCS has also ceased as is access to foreign exchange even for legitimate demands like PTA/BTA and LCs. One would have expected that these restrictions easily cushioned the impact of the price fall in oil

So since supply of dollar is low, prices would inevitably rise. This isn't advanced maths. How does the government address this and what is their economic focus?

The answer is somewhere in their reactions. The present government has done almost no projects or awarded any contract. Meaning whatever revenue they derive is mostly unspent aside recurrent expenditures. Their next moves shows just how lost they are

The Buhari government, clearly with policies to restrict import, obviously should be targeting increased export. But an exporter that gets paid in foreign exchange, which would have been the offsetting balance to dollar demand, is forced to sell the export proceeds to the already rich commercial banks, and you guessed it, at the ridiculous official exchange rate of N197!. So if an exporter sells Koso woods to a chinese company and receives $100k, he is forced to sell the dollars to the commercial bank that received it at N197 rather than sell it at the open market and make more income. This has made many exporters and potential exporters abandon the effort as doing so would be unprofitable and punitive

If this isn't the most insane way to encourage export then nothing is. It clearly shows the govt actually isn't even focusing on boosting export. For me, the high exchange rate represent a golden opportunity for Nigerians to enter the bush, farms, factories etc to source for export products and not only revitalize the economy but diversify it

If this doesn't show how lost this government is, nothing else will. I do not support devaluation simply because once you do, the parallel market would simply move ahead and the disparity continues. The solution is in export

The only way to bridge the gap is to boost supply of foreign exchange. This happened sometime last year when the greenback traded for N196 before the electioneering gimmicks intervened to drive it up

The darkest time is just before dawn

True for oga Titus

This is a bit too hasty for me. We have not gotten to the stage where a loan is needed. Although the price of oil is low, we still make significant income from the low prices plus income from other revenue generating agencies like customs, Immigration, CBN etc

Borrowing two months into the budget implementation suggests a much more deeper problem of acute dryness. Meaning what we generate locally, which is in trillions , isn't enough to service government operations. If indeed this is the case and the comatose state of any capital project suggests it is, then we should be really worried. It means without external borrowing we cannot do any capital project.

The other day it was Lagos state government being approved massive external loans. Now at the center we need almost N1.5t external loan two months into a budget of N6t. What then do we generate locally? Herein lies my mortal fear for our future. If we cannot generate up to N5t locally in a year from various thriving government agencies, then there is a fundamental problem which the present government isn't addressing but are content to maintain the status quo. Where then is the shift?

For me the most plausible explanation is we probably generate more than N6t locally in a given year but these are all frittered away by a corrupt and passive government system who are reliant on ready made income channels and won't be bothered or have any ideas on expanding existing income lines or reducing graft. I am convinced corruption remain rife in all levels of our governments and agencies, despite the government's public agrandisement against graft which clearly leaves the bulk of the looters untouched

This is almost a year gone and I cannot say we have improved much. We also cannot make progress from continuously doing the same thing that has failed us repeatedly

It is time we felt the advent of a new government. Aside the fight against graft, the present government has shown remarkable lack of insight and understanding of how to make the country start ticking. During the obasanjo's administration, there were noticeable impact on the lives of the people and corporate citizens

For the first time, banks were robust enough to support businesses with hundreds of millions of naira. The capital market was upbeat and economic factors were all active. This also were true for the fashola's administration and governor chime to mention a few. I mentioned obj's tenure particularly because he too started zealously with a war against graft, introducing efcc and icpc; yet the economic factors were noticeably active

It is a major negative score for this present rulers to keep looking for excuses while impoverishing the masses and playing them for billiards. I agree with Fayose completely on this. It's becoming too comical for even their supporters.

I also think the ministers are too scared to use their initiatives to avoid crossing an unforgiving and iron fisted ruler whom they suspect is a closet maximum ruler. If indeed this is the case, the prognosis for our future economic growth is dire

While it is good to rout corruption in Nigeria, the hypocrisy in the present war against a segment of the political class makes the whole effort a big charade. This country is on its knees because politicians from all class have looted our commonwealth

I am sick to my guts when someone comes up and start spouting like a paid agent, cherrypicking points to paint the picture of corruption. An unbiased view would have pointed out that a complete review of defence budget from 1999 or even earlier would greatly showcase the entire political class that has pinned the country in bondage for decades.

Oh yes, you guessed it! They wouldn't say this because a longer review would expose their allies. The country is littered with corrupt people and almost all government agencies in Abuja, Lagos and elsewhere are enmeshed in corruption. All elections, including those sponsored by the present ruling class, were paid for with looted public funds

I am sick of people trying to act holier than thou, when a toddler with common sense can easily tell that this is a charade. A case of cherry picking those to hunt down whilst leaving the greater bulk of the thieves (in this case, in allied political class) to roam free, with pockets bulging with our commonwealth.

The op stated there exist sycophants who readily defends the looters. I will opine they defend the injustice in the entire charade, seeing as other allied looters are sitted back, having a laugh at all of you. And you, who wishes not to see that, is a leader of the sycophants you accuse.

When they are serious about the anti corruption war, right thinking folks would be at the forefront in support, not praise singers like you whose motives remain unclear

I think the newspaper should, for matter of urgent clarification, seek for a breakdown of what the money is used for, under the freedom of information act. That would give a more informed reporting and news worthiness.

By claiming cash withdrawal above N5m before 2015 when cashless policy went into force qualifies as money laundering, clearly shows that this reporter and newspaper do not understand nor sought to understand banking laws and regulations before going ahead with this report. It was the cashless policy which went into force late in 2015 that prohibited cash withdrawals above N500,000 for individuals and N2m for corporate bodies, with some exemptions. Before this period, an organization or an individual has the right to utilize funds belonging to them in whatever manner they deem fit. With the cashless policy however, Withdrawals above these limits must be done via cheques or other electronic channels

By claiming these transactions are evidence of money laundering, this newspaper opens themselves up for claims of ignorance and libel, especially as such withdrawals must have been authorized by the valid authority of the NAS. For the NAS to have authorized such withdrawals means there must have been a purpose for the withdrawal and these should have been the purview of this reporting, rather than a blanket labeling of transactions done by the NAS as acts of crime

I can be sure the banks mentioned therein would never have paid those cheques if the authorized signatories of the NAS had not signed or if the withdrawal of such sums constituted a violation of extant regulations. Please also note that what the money laundering law provided, which I suppose was the confusion of this reporter, is that whenever withdrawal in such sums are made, the bank must report such transactions to the Nigerian Financial Intelligence Unit, which is an arm of EFCC

The purpose of this report is for NFIU to consider if there is/are any reason to treat such transactions as suspicious and should they think so, seek clarification

If Femi is knowingly distorting information to please his employers, he should be mindful that nothing lasts forever as exemplified by the relationship between Buhari and Dasuki. In the course of life, situations reverses repeatedly

Justice and equity build a stronger institution

sonOfLucifer:
Been vs Being. So many guilty of this error on Nigerian social media.

Even our newspaper reporters. It's pathetic

It's very disturbing the way we do selective arguments in Nigeria. We can write in support of the indefensible simply because of our political and other leanings and has unwholesome fellowship of like minds even in the face of obvious dishonesty and lies

In the case of Dasuki the judge clearly prohibited all security agencies from rearresting him, a fact that is public and part of the judgement yet Barcanister, in his haste to achive a prejudiced intention, conveniently quoted the portion of the judgment which he seeks to use, knowing full well most people are not going to research this and believe whatever he said to be factual

It is all well and good to prosecute people and uphold the constitution but same must be done within laid down rules and judicial principles. Without some of the reforms introduced in our electoral and political processes by the last administration, I doubt the present government would have been where they are. Under the obasanjo government the chances of an opposition party winning at the centre was almost non existent. We all know how elections conducted then were

The point is we must shun a system where the executive tries to take away the gains we have made as a society and takes us back to the dark ages where political, judicial and clanish success are completely predetermined and controlled by the executive and meted out to those they seek to reward or punish

We the governed should try to be apolitical and demand the government toes the path of the law rather than an illogical display of support even in the face of stone age and draconian tendencies simply because such Present tendencies are targeted at those we hate. There is a reason our forefathers insisted on the courts and laid down processes. If there wasn't such the present government surely won't be where they are now

Bevista:
I'll help with some figures of the budget proposals of the FG from 2011, just to provide some perspective:

2011
Budget Proposed - N4.97Trillion
Oil Price Used - $75
Oil Production - 2.3mbbls/day

2012
Budget Proposed - N4.75Trillion
Oil Price Used - $70
Oil Production - 2.48mbbls/day

2013
Budget Proposed - N4.98Trillion
Oil Price Used - $79
Oil Production - 2.53mbbls/day

2014
Budget Proposed - N4.91Trillion
Oil Price Used - $75
Oil Production - 2.39mbbls/day

2015
Budget Proposed - N4.49Trillion
Oil Price Used - $53
Oil Production - 2.28mbbls/day

2016
Budget Proposed - N6.0Trillion
Oil Price Used - $38
Oil Production - 2.2mbbls/day

I am interested in seeing the revenue details from the budget to know exactly how government intends to fund the budget. My first instinct, though, is that leackages in revenue generating agencies (like NCS, NPA, NNPC, etc) have been blocked and all funds channeled into the TSA. That the government has been able to come up with that size of budget - even in the face of declining oil prices & lower oil production levels - without depreciating the official exchange rate of the Naira is truly remarkable.

How GEJ (with benchmark oil price of over $75 throughout his term) was not able to come up with a budget of up to N5T beggars belief. One can now say without equivocation that, had PMB met an oil price of $75, we would be talking about a N10T budget. Kindly note that during GEJ term, oil price was actually higher ($105) than the budget benchmark and yet our Foreign Reserves and ECA was declining.

This is an incredible way to make a comparative analysis. Have you stopped to ask yourself if the surplus in the previous era was used for savings like the SWF, or for future appropriations due to later discovered and unbudgeted needs as is common the world over?. This current projections literally means the entire revenue would be spent, with scant possibilities for surpluses and savings. Also if reflating the economy is the target, rising dollar value and galloping cost of goods and services means quantum inflation may be the end product.

It would appear to me as if budgeting may not infact be the bane of our growth but implementation. I actually think the previous administration's budget is more growth oriented than this which is reactive and a total submission that things have gone out of control, much like "Spend all you have got and worry about the coffers later as long as you have mint roads and some fancy buildings to show you are working". Finally you will find that a huge chunk of this budget is targeted at existing and budgeted public borrowing interest servicing. This isn't at all smart in my opinion

What about the all the money looted under the military? Are those all forgiven? I would like to believe Nigeria didn't start being impoverished in the past 16years. IBB is still alive and how come Buhari isn't looking at recovering the loot he is alleged to have stolen

Whoever is the MOD of this thread deserves to be removed for allowing the use of this platform to fester ethnic bigotry and divisive tendencies. This is how the Rwandan Genocide started with some electronic platforms used as support base to fester and spread hatred and division. For the owner of this site, it is time to monitor in real time the activities of your members or become an outlet where serious minded folks abhor and known mostly for its nefarious contents and junked egalitarian smears

Whilst I don't like the APC led government and most of their policies, I find that in this instance, this fine is very much in order. Companies must respect the laws of the countries they operate or face the consequences. In May 2015, 5 major banks, including Chase, were fined a total of $5.8b by the US government for contravening extant laws. Just this September, VW was fined a staggering $18b for cheating on their EPA emission standards and violating US clean air standards. BP were also fined $18.7b over the fatal gulf oil spill in 2010. History is replete of countries the world over fining errant companies. So the so called foreign investors should begin to realize that we cannot trade our legal responsibilities for their handouts

Philippians 4:5 "Let your humility be known to all men ". Your appearance and conduct must tell more about you than what you say

A bad workman blames his tools....

Being from Katsina, little wonder the presidential encomium showered on this 'resignation '. We all know how corrupt the Nigerian Custom Service is but while this Katsina dude is being praised for 'wonderful service' others are being maligned. Fair play, Not

This is good. A personal friend and publisher of Hints magazine. A great person

Ruthiegeorge:
I Ǻ♍ a licenced nurse nd presently in midwifery programme in Abia state university. Pls tell ur wife to go for rhesus factor test. If she is rhesus negative then she needs to take a drug called.Rogam. Its sold for like 18k or more. I don't know if its the trade name of the drug but that's what she needs.

Good answer. But a Rhesus negative woman pregnant by a positive male would likely lead to this kind of problem. It is unlikely she can correct her problem if the medication wasn't taken during the first delivery

But its a good place to start, by checking her Rhesus factor

Turks and Caicos Island, St Kits and Nevis

All visa free for Nigerians

By the way, Turks and Caicos Island is close to the US state of Florida. As close as Lagos and Benin City

You do not need a visa to Nigeria with a Gambian passport. However come along with your British passport as you would need that for your return to the UK

Legit: You're right in theory, but WRONG in Law. The law applies what is called common law to civil case other than goods. The street is open to everyone, the bank is open only to anyone that have business there. The bank is a commercial establishment therefore give ppl license to come in, thus must protect anyone in their premises, whether the money is deposit or not. The fact as stated is Licensee is owe extra protection, as matter of law. That is why you have security in shops, bank, and office building, to show they have protection. The issue is not about the money collected, the issue is about the licensee
customer.

You obviously don't understand what you are saying. Banks are assumed to already provide a standard security on their premises. It will be deemed by the courts to be adequate thus invalidating your argument against the duty of care

Balmoral supermarket ltd vs bank of new Zealand clearly established the precedent that in cases as these, the banks are not liable. As long as the cashier has not stamped and handed over the deposit slip the customer is on his own. Case closed

millerojong: ......dats d position of d law as regards banking law...to support it,see d case of, foley v hill and joachinson v swiss bank corp......sorry,cnt give citations,my books are still in calabar....bt dose cases establishes d fact once u deposit ur mony,its no longer ur mony bt d bank's own...it is wen u make demand for ur cash and d bank refuses,nw den u can sue....bt once ur still with ur mony in d banking hall,its still ur mony,no liability on d bank incase of a break out....*ex ni hillo ni hil fit**(u can place nofin on smtin nd xpct it to stand)

Foley vs Hill (1848) dealt more with if the bank is a debtor or bailee which the house of Lords established the former. However joachimson vs swiss banking corp (1921) lord Atkins correctly established that the bank has to be liable on demand deposits standing on the credit of customers. It has to be despoited and not within the premises purported to be despoited