₦airaland Forum

Very funny. No doubt, I do admire the 'entrepreneurial clout' of Mark Z but a cursory look at the financials indicates that something is amiss.


A company valued at 50 billion making 500m in six months? Several questions come to mind, what is the basis for the valuation? FB is not listed on any stock exchange so there is no book value of equity or market capitalization to start with and from my very 'limited knowledge' of corporate finance, if a company that is not listed, is to be valued, you can use either of these two methods namely 'Comparative firms approach' or 'Comparative transactions approach'.

For the first method several firms, that are in the same sector and engage in similar line of business are valued using  a combination of book value of equity, market value of shares listed sales turn over [i]et al.[/i]  and an average is derived. The average is then used as a starting point to determine a 'value'  for the company in question.

For the second approach, similar transactions (i.e projects) are used.  Here , the cost of financial transactions such as acquisitions, expansions plans are  used and the NPV (net present value)  of the future cash flows of these projects calculated and used  to value the company.

Now, how many acquisitions has FB made recently? and how companies valued at 50 billion make a paltry 500m in their half year? Even companies valued at half that amount (i.e 25 billion) make billions in net income in just one quarter!  Also, how much does FB really make from online adverts? We are also quick to forget the role that Goldman Sachs is playing in this whole fiasco !

Finally, how much of the 500m profit is  the 'real net income' after all expenses have been deducted? We need to ask these questions! In 2008 we had the 'housing bubble'- the next bubble is the SOCIAL MEDIA BUBBLE.

Facebook is valued at 50 billion USD, makes 500m USD from sales revenue of 1.6 billion USD, is planning to float consecutively on three international stock exchanges and private equity investors are just looking for an 'exit point', just  do the maths and put the pieces of the 'jigsaw puzzle' together


My opinion, 'greater fool theory' at work once again!

http://blogs.telegraph.co.uk/finance/jeremywarner/100009173/the-facts-behind-goldmans-50bn-facebook-valuation/

https://www.youtube.com/watch?v=GuqZfaj34nc&feature=player_embedded#!


Interesting video.Can someone please embed this for me. Thanks

https://www.youtube.com/watch?v=R9n5FeqDmPI

I love my country and will surely relocate back very soon. No doubt there are a lot of issues that could discourage one from relocation but truth be told, the same issues are prevalent every where. In NY, the rate of gang related stabbings and shootings is subliminal same also for London et al. I visited a friend in London and was quite amazed at the kind of life he was living there and he is always quick to condemn Nigeria at the drop of a hat.

There is also this 'bubble' that most Nigerians abroad have been drawn into- this fake life of 'relentless consumerism' back by credit which has more or less put most people into a life of bondage. Are we saying that we don't have slums in the developed countries that most of us worship and adore? At least, I have seen people sleep on the streets of NY and also in London.

Seriously, most 'disgruntled elements' cannot even afford to think of coming back because , they have tied themselves to a 'cheap' mortgage of 25-50 years and have to work round the clock just to meet up with monthly payments or some are still trying to sort out their pile of credit card debt!


God bless Nigeria!

Theblessed:
[b][size=16pt]Hey buddy, what's wrong with delegating responsibilities, then?  Is it not part and parcel of leadership/management style?

Now, let's clarify this - when Obasanjo was in power as the President, was he also the Defence Minister, Finance Minister, Education etc, eh? Or were those roles delegated to other people?   So, what's wrong with one delegating a duty as long as he/she keeps an eye on the ball, huh? 

You see, sometimes your arguments on here are very unreasonable to the point that, one can only percieve nothing but hate floating all over the place in your posts. Such attitude can't get us any where in this country - just give praise where it's due because they say, 'if you can't beat them, join them'!!!

And now, let's discuss this issue about Ngozi? How is Ngozi silly?

Could you please, explain??  Do you love your country at all? Or are you triggering my suspicion that you might be one of those politician's children/relative who are angry because, their milikie has been stopped as their fathers were voted out of office this last election? Are you one of them or was your Minister Uncle a victim of the election, too? Declare yourself  let's see where you're coming from?

What matters, is it threading on everyones toes or ensuring that all our country's revenues are appropriately accounted for, in order to get on with re-building our shattered economy?  Hey, what's your priority??

I wish the President will go further to engage the services of other intelligence and skilled Nigerian ladies as Ngozi - and there's quite a number of them in wait, who could do a better job, I can assure you.   Afterall, women are better managers - Margaret Thatcher managed Britain and the world saw what she did. Therefore, those career politician who think our money is free-for-all will now realise, time's up for them!!

Listen, if you're not quite sure what Ngozi's role is about - it's about ensuring CHECKS AND BALANCES in our economy/country, ok?

The lady is like an accountant, she's employed to account to the country, everything that brings money to Nigerian economy (INCOME) - including INCOME FROM THOSE PETTY BUSINESSES/JOBS like, the street Mechanics, corner shop owners, market stall owners, Mama Akara and Mama put in Nigerian streets all over the counrty, via rates/taxes they should and must pay to their local government before they could even open their doors to the public i.e. before they could even fry any sham sham or repair my car down the road.

This is because, the money they make and not accounting for, through paying their local business rates/taxes, are Income the Government is loosing out and that income is liable to be taxed!!  

So, by owing their State Government un-paid taxes, they subsequently owe the economy and that's the revenue Ngozi should account for, if you don't know.

In addition, her watchful eyes are also on how our money is spent by these rogue Ministers (EXPENDITURES) e.g. there's no need to award a contract to repair/maintain Ajegunle road, only for them to give us a receipt for GRADING IT INSTEAD, Abi?.  

We need to get our money's worth for job well done that is, get exactly what we paid for - what's wrong with that??  So, stop insulting someone's mother here, ok?

It seems things are getting too complicated for you to hark/understand, abi? Just wait for it!!  Nigerian Ministers have had it too good for a long time.  They'd been used to not accounting for any thing they are responsible for, and now things have changed and they are complaining, why? They better get used to this too, or leave our office. [/size][/b]

Thank you and God bless, any minister that is not happy with the new development should resign. Simple! In fact I think Jonathan should even carry out a second round of screening to 'weed out the shaft'! How can a minister (someone who has been called to serve his fatherland) make such statements like 'where was she when they were campaigning'? Of course, she is to act as a 'check and balance' and she has nothing to lose because she didn't campaign hence she can pack her bags and leave with her dignity intact. How many of our so called 'ministers' can do that? None I guess because the goodies and perks attached to the office they are occupying has blocked out every iota of reasoning left in them

I am also amazed at how some Nlers condemn and criticize and why plead anonymity? Let the 'disgruntled' minister come out and speak with. The era of 'reckless looting' without any reprimand is coming to an end

God bless Nigeria!

Based in NY where there is an 'emprie state of mind' , and I have been in doors since Saturday. 'Irene' has been downgraded to a tropical storm though, it has destroyed some structure but not as devastating as Katrina and other natural disasters.

My peeps in Nigeria are quite worried though and Momsie (sweet mother) has to reconfirm from me over the phone, every she watches on CNN

I think that removing the oil subsidy is the only sustainable solution right now. It is a draconian idea but albeit, the only way forward in this regard.

First and foremost, how many average Nigerians benefit from the subsidy

Secondly , we keep saying that refineries should be built, I have lost hope in the ability of the Nigerian Govt -past present and future to effectively see any National project to a successful end because of the endemic level of corruption in the system. So saying that, Govt should build or refurbish existing refineries to be able to meet national demand is NOT A TENABLE SUGGESTION FOR ME.

In this regard, private investment is the only way forward and how many private investors-home and abroad would want to invest in a capital intensive project like oil exploration, refining, sales and distribution, if the existing subsidies act as a barrier? The answer of course is NO!

I quite agree that the masses will suffer but truth be told- are the masses not suffering already even with the subsidy

If the removal of subsidy achieves it's intended outcome in 'practice', the market becomes efficient and companies will be compelled to refine locally which means more jobs will be created, more refineries built  thereby, driving down the cost of production and problem of 'international pricing'( i.e.using the dollar as the benchmark). More so, prices will be determined by market competition and demand.

A very good case is the GSM industry, I quite agree that the industry is still light years behind when you look at Telcos in other countries and privatization process fraught with a lot of ''unethical issues, but just imagine what the situation would be like, if Nitel still has the monopoly of the telecomms industry in Nigeria especially in this time and era.

God bless Nigeria!

musiwa.,.:
dont be silly, there is nothing like subsidy in nigeria.  Nigerian do not trust Jonathan Goodluck with their money in the first place. citizen most have a level of trust to its leader. this is why I once said ,this is one reason I once said,  i should be president. Because the people of Nigeria will trust me, more than they trust Jonathan Goodluck.  No citizen anywhere in the world will pay taxes to leaders they dont trust. 

Look here is Bishop Oyedepo two universities. the church is less populated than any the smallest state in Nigeria of bayelsa state.  No state in the federal republic of Nigeria has this. Even criminal want to rule over good people. It is not possible for people who dont trust you to give you money. Here is Oyedepo universities,   but because of a trust relationship.


Removing edo,delta and Yorubas from nigeria will solve most of your problem.

Are you for real? Last time I checked, these, are the states that have this natural resource?
BTW, why do you despise THE FINANCE MINISTER with so much passion

THE MEDIA- BLACK MAN'S KRYPTONITE

.

My advice would that you contact the bank that you have a domiciliary account with and submit all your FAQs to them.They would be in the best position to provide the answers that you seek.

This said, I can say that even before this policy , there has always been a 'limit' to the number of transactions you can consummate, periodically on on cash dom. account in terms of 'volume and value' for money laundering reasons

The rot is a s a result of years of neglect and decadence which has been allowed to go on in the system. In tandem with this is , the lack of basic infrastructure required to create a conducive learning environment in the sector.

May God help us and God bless Nigeria

BTW, I am really appalled at the level of SMS/text speak on this domain?, Maybe we could start by limiting the 'propensity' to use SMS/text speak to certain media such our our BBs?

P.S- I was requested to help an undergrad write a 'review' for his CV and to my surprise , 60% of the information contained in the CV was written in SMS language(i.e. schools as skools, computer and komputa )

damola1:
My brother, all dat one is not concern the boys on the street. Let them do what they need to do to keep the economy afloat, that's why they are there!, sanusi, johna oh, they are public servant, so must deliver!, or do you expect me without any tiny power to go and fix that for them?

You are quite right about this, but also bear in mind that it is our 'collective responsibility'

GOD BLESS NIGERIA!

It is not Sanusi's fault.Our economy relies heavily on revenue from crude oil exports and manufacturing is virtually non existent. THE CBN had even tried to prevent this by 'placing a limit' on the demand for dollar and this in turn, created a parallel market where there has been a huge margin between the official and black market rates. The depreciation in Naira is caused by market forces- demand for dollar as against Naira has increased  and exacerbated by the fact that our economy is largely import oriented. More so, our currency is just a 'transitional  legal tender' with on 'real value' attached to it.

Let's get it right please!

Thank you, you can call me whatever you like, no stress with that. However, it is still expedient that certain points are made clear.

'Cash Management' as you have referred to here, encompasses the cost of handling cash related transactions (processing , storing, insurance premium paid to hold 'excess over limit' and other indirect costs) and is borne by the bank not the CBN. Banks don't print or 'mint' money, the CBN does. Also, printing of money is not in any way part of cash management and the CBN does not in any way transfer this cost to banks nor their customers. This is used as a monetary policy tool to control the supply of money and targeting rates of interest for the purpose of promoting economic growth and stability. So the analogy is still very unclear and with a lot in discrepant inconsistencies.

The cash withdrawal limit has nothing to do with the amount of money in circulation or value of money per say. It is also not going to affect the value of basket of goods sold in Nigeria vis-a-vis the exchange rate. So, for you to say that, 'only the face value will change i.e. N100 becomes N1, and where N165 bought one USD, N1.65 will now buy it', is intrinsically incorrect. If the CBN feels that there is excess supply of money, treasury bills are sold as OMOs(open market securities) to FIs( financial institutions) to mop up cash and if the supply of money is short, the opposite is done which in turn have corresponding impacts on inflation and interest rates. The new policy is a cost cutting measure proposed by banks to help reduce overhead and operational cost of doing business.

You still talk of re-decimilization, there is no way, this can be done in Nigeria at least for now, in an economy where the 'real' value of our currency is tied to the goods and services manufactured in another country and imported in our country using a foreign currency as a medium of exchange. Simply put, Britain or America didn't just simply knock off some 'zeros' from their currency or 'reduce the number of notes printed from 8 to 4' without stable macro economic factors. Without, a thriving or break even manufacturing sector and at least a 'fair balance' in international trade between Nigeria and other countries, our currency will still be subject to the dictates of other currencies. If 'reminting' money by 'adding or removing zeros' from it does not affect the value of the currency in anyway, then, countries like Zimbabwe and Ghana should be 'super economies' by now! In fact Nigerian still has a higher GDP and GNP than Ghana even with the huge capital flight witnessed daily, in our country!

I still maintain that the IT platform is robust and 'not ahead' because of a myriad of accentuating factors and is plagued with challenges More so, cheque cloning is a very common thing everywhere,( Nigeria, UK and US inclusive). Finally, the level of fraud committed in the countries you have mentioned above where their 'system is not porous' is more than, that witnessed in Nigeria.


Thank you once again!

@tanimola 22

Well said, as you have indicated, the person in question has had a string of academic successes even before leaving Nigeria, so the drive to 'excel' against all odds was already an 'innate trait' in him as a Nigerian undergraduate studying at Unilag- even under very dire circumstances.

Simply 'traveling abroad' or 'attending a foreign school' or 'bagging a foreign certificate' is not alone sufficient to make one a 'super hero' or 'harry porter' of so sort! This is what we need to understand. The general misconception out there especially amongst the Nigerian youth is that once they travel out or earn a foreign degree then, they can turn perform magic which is not always the case.

Recently, I had to represent a HNW client, interested in acquiring the downstream operations of a SME and worked with a Ivy league trained lawyer and all he did during all the business meetings we had with both clients was to prepare presentation slides and nothing more! The fellow didn't not contribute anything to the origination, execution, negotiation and sealing of the deal.

A secured creditor is a creditor with the benefit of a security interest over some or all of the assets of the debtor. In the event of the bankruptcy of the debtor(i.e the bank in this case), the secured creditor can enforce security against the assets of the debtor and avoid competing for a distribution on liquidation with the unsecured creditors. The 'lien' on the assets of the bank which is held decreases as the level of security interest also decreases.

Intercontinental Bank and Access recently completed a merger deal and TIA( transaction implementation agreement) has been signed.
Since, Access bank is the acquiring firm, what will be done is that the shareholders of the acquired firm(ICB) will be compensated with shares issued by the acquiring firm. This is done proportionally and using certain financial ratios to determine the amount to be issued to shareholders of the acquired firm.The sad news is that the existing shareholders of Intercontinental might not get much as the shares were trading at a historically low price when the transaction was consummated

AjanleKoko:
I am even going to go out on a limb and assert that foreign graduates are not all necessarily doing well outside Nigeria either. Maybe from a Nigerian standpoint, yes, they have jobs. But relative to their environment, how many are employed in top positions in Fortune 50 companies? How many Nigerians have been CEOs of top finance or tech companies? That is, compared to our usual competitors in the global jobs market, Indians, Filipinos, and maybe Chinese to some extent.

It's the same situation as within Nigeria: The very best do very well, and the not so good do average or badly. It's not different from the Nigerian situation, just that there are lots of places people fit into, unlike Nigeria. Everybody in Nigeria, from first to third class, from engineering to guidance and counselling, are looking for the same jobs in the same companies.

We need to separate our reality from the reality. Are Indian schools better than US schools? Most definitely not. That being the case, why are Indians occupying all the slots for H1-B visas? Everybody knows the answer to that: Indians have proved themselves as specialists. Nigerians are largely generalists. Bsc, Msc, MBA, and plenty certifications, with no particular skill or experience to speak of. Of course we have a few specialists, and they would even relate better to what I am saying. We are very thin on the ground there.

In fact, I'll even say that, in the US, every Tom Joystick and Harry do not try to force their CVs into Goldman Sachs. There is already a class distinction from the beginning. Ivy League vs regular school, top student vs average student. Unlike Nigeria, where everybody shows up for the Citibank aptitude test, GS will not even speak to graduates who don't have, say, first class. That is their system.

SPOT ON !

First and foremost, I don't need to engage in a 'war of words' with you or use 'abusive language' because frankly speaking, there are certain attitudes that one outgrows and for me,  this falls within the category of such. Also, I personally think that it is a waste of my time and also, space on this thread. So, I will reply stating my take on the above subject manner in a civilized manner.

Secondly, you say that money should be re-decimalized, by removing the zeros and hence eradicating currencies in large denominations.This is easier said than done and has no relevance to the issue at hand( I still cannot see the 'analogy' between this and cash withdrawal limits?). Have you thought of the impact that this 'suggestion' will have on the marco economy at large? What about the fiscal and monetary implications? Re-decimalization of currency either by devaluing it  (which is akin to what you have put forward) or otherwise has far more reaching implications on the economy of the country than just making  huge cash based transactions easy for a few minority.

Nigeria, is an import-oriented economy and this idea you have suggested can only be implemented if it is backed by real growth ( i.e manufacturing). Countries that devalue their currencies are those that have real factors of production contributing to the growth of the economy (e.g China) and there is a limit to which this can be done so that the intended effects don't back fire! Also, the imbalance caused by huge 'capital flight' and trade deficits in international payments in Nigeria cannot sustain it.

Finally, I will refer you back to my post where I have commented  that the point you raised has to be addressed from a 'holistic' point of view (i.e look at the marco and mirco-economic implications and impact it will have on the Nigerian economy now and in the long run)

Thank you.

Charm lies in the unsaid, the unwritten, and the undisplayed. It takes mastery to control silence.

.

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@funkybaby
As long as you have a savings account, or any other type of account (fixed income or deposit account), that accrues interest on a monthly basis, you are liable to pay WHT. This said, I would like raise a valid point here. You have stated that the account is dormant and wonder why they still charge you WHT, hence, I have this question to ask, do you still receive interest ?( no matter how small). If the answer to the above question is YES, then, the bank reserves the right to deduct WHT from the interest accrued.

At this point I would like to include a CAVEAT, because you include that you have other savings accounts in other banks and yet, you are not charged WHT or so it seems? This is so for several reasons some of which I will explain below-

1)   First and foremost, I know that in all Nigerian banks, you lose the right to a monthly interest if you withdraw more than 3-5 times from your account in a month ( the limit applied varies hence, I have used a range of the low and highest frequency) This you can confirm from your bank(s). What this simply means, is that if you for example, transact with Bank A and the limit implied in this ‘context’ for their savings account is three per month, you will not be entitled to a monthly interest if you withdraw more than three times. Subsequently, if interest is not paid to you then there will be no basis for deducting WHT. So if your other saving accounts have been quite active (outflows exceeding the limits set by the banks where they are domiciled) then you won’t have any interest and no WHT deducted.

2) Secondly, banks in Nigeria use different banking software and applications. Some of which are programmed to deduct WHT ‘at source’ i.e. before net interest is credited to customers’ accounts on pro-rata (depending on amount held in the account for the month under review). Others prefer to credit total interest first and then deduct WHT individually from customer’s accounts for ‘audit trail purposes’. Either way the WHT is remitted back to the Govt periodically.

Finally, I still maintain my stance, that Nigeria banks have a robust IT platform but ability to maximize the potentials herein is hampered by a myriad of accentuating circumstances. Top of which is the lack of power supply, poorly trained human capital etc. I 'interned' as an associate with a full service global investment bank in America and was quite surprised that the IT platform they were using then was one that had been implemented way before I even left the shores of Nigeria to study abroad. 

For the failed  inter bank ATM withdrawals- the service is currently provided by only three vending operators- viz Interswitch, Valucard and Visa  and the level of traffic generated through the volume of daily transactions cannot be handled by then alone and you also have to consider the issue of power supply mentioned earlier. This was one of the reasons why CBN directed banks to remove all ‘off site’ ATMs (cash machines not located within bank premises). Presently, there are plans to get extra vending operators for this kind of service. I do know that we don’t have a perfect system but I can tell you that our banking model if, supported by all and sundry will be world class!

I admire your courage, however you need to serious consider a lot of things before you take this bold leap of faith. You are a married man with a family so you have to include them in the scheme of things. Also think very well, about the course you want to study, MBA in IT will not get you any where in America (unless you had extant exposure here in Nigeria and with an internationally recognized firm) , it might get you a job but I doubt, if it will give you the accelerated career growth you so much desire.

I don't want to discourage you but it is the 'hard and bitter truth'. The American economy is still trying to recover from the 2008 global recession and there is the never ending debt crisis currently on ground. You will be amazed at the kind of jobs that even 'MBAs' do here just to survive.

I will recommend that you look at your options very well and also have a plan 'B' just in case. Finally, if you decide to take the risk and it doesn't work out as expected, don't be ashamed to retrace your steps because frankly speaking, a lot of people Nigerians inclusive, are 'LOST IN TRANSIT' here in AMERICA

BEST OF LUCK!

djustice:
You people never keep crawling out of the woodwork with your sanctimonious yeyerisms.

Your analysis is good but off point.

The poster refers to the cost of 'managing money'. When you want to give a well balanced opinion on  an issue like this, you need to approach it from a 'holistic' point of view. The cost of cash management is quite high and this is one of the reasons why currencies with higher denominations were  introduced in the first place, but apparently it has not solved the problem at hand. In fact let me ask you  one question you say that 'coins, N5, N10, N20 and N50 notes should be used whilst N1000, N500, N200 and N100 notes should phased out immediately', if you decide now, that you want to withdraw your '40 million that you were charged $700' for, and  you are paid in coins, N5, N10, N20 and N50 notes , will you be happy?


Secondly, I don't see how the cash limit suggested will bring about job losses. Have you heard of the term 'capacity under utilization'- if you go to most Nigerian banks, all you see is graduates who have been converted to note counters and bulk tellers counting cash every day! Even, If there are job losses as you have suggested ,please can you tell me the impact it will have on the economy (considering the fact that the poster had stated that only a minor proportion are involved in this).

At this point I will say that, you have mixed up the functions of the CBN  and  commercial banks in general- the former is in charge of printing money amongst other functions whilst the latter isn't. Let me also state that the limit on cash withdrawal was actually proposed by the banks in general and not the CBN, the CBN as the apex bank, regulator and lender of last resort just drew up the policy framework to guide the implementation of the whole process.

The poster is also correct, a significant proportion of the costs associated with managing cash and not 'printing or minting it' as misinterpreted  by you, is transferred to the customers and it is also true that, a tiny proportion of customers actually account for over 70% huge cash transactions  and I think that it is ludicrous that the cost of managing this is shared by all and sundry.


In addition, you have not even looked at the 'big picture' yet , I can confirm to you that there is currently a plan  for a 'consortium of banks' to build
an independent power station and hence creating alternative source of power for their bank wide operations. I also disagree with you when you say that the IT infrastructure used in the Nigerian banking system is poor, if you say there is a a power problem-yes but infrastructure in terms  of systems-no .On the contrary, the Nigerian banking system has one of the most robust IT platforms in the world. I have worked in 'managerial capacity' in Nigeria and presently abroad thus I can say without fear of doubt, that we are ahead in the aspect. The main challenge is to have constant power supply, to maximize potentials inherent to the fullest

FINALLY, JUST TO ADD MY BIT, THERE IS ALSO THE INSURANCE PREMIUM THAT BANKS PAY FOR HOLDING 'EXCESS CASH ABOVE LIMIT', ALL OF WHICH ADD TO THE TOTAL OPERATING COST INCURRED(cited from my last comment on this thread)

mikewills:
Fact One:
Cost of cash to the Nigeria financial system is high and rising, N114 billion in 2009 and projected to reach N192 billion in 2012.  Jut to put this in context, the budget provisions for the Ministries of Power, Health, Education and Works in the 2011 budget are N90 billion, N257 billion, N356billion and N182 billion respectively.

Fact Two:
About 30 per cent of the physical space in bank branches, plus same fraction of employees are deployed to cash operations.  This means that a reduction in the cost of cash should achieve significant, direct impact on the aggregate cost of operation for all banks, including the CBN.

Fact Three:
Cost of banking services is typically recovered from the customers (in the form of COT, interest and charges on borrowings). This means that indeed the cash operations costs are currently apportioned to other customers and stakeholders of the bank.

Fact Four:
In Nigeria, over 99 per cent of customer activities in a typical bank branch are cash transactions, only 10 per cent of total number of cash transactions are above N150,000 but this 10 per cent accounts for about 70 per cent of total bank branch value of cash transactions.  Consequently, 10 per cent of customers that make high volume cash transactions impose the reported huge cost of cash operations on 90 per cent other customers.  Put differently, 90 per cent of bank customers (plus other stakeholders) are currently subsidising the cost of the heavy cash transactions generated by the 10 per cent of bank cash customers!

These are incontrovertible facts and we really need to reduce the cost of cash, not only on the banks but to CBN and in extension tax payers (which I believe most of us fall into this category)

THANK YOU GOD BLESS

FUNKY BABE, THE WHT ON YOUR SAVING IS TAX DEDUCTED ON THE INTEREST THAT HAS ACCRUED ON AMOUNT AVAILABLE IN YOUR ACCOUNT. IT IS NOT DEDUCTED FROM YOUR SAVINGS PER SAY BUT FROM THE INTEREST THAT THE BANK GIVES TO YOU WHICH IS REMITTED TO THE GOVT. AS FOR THE SMS ALERT, JUST NOTIFY THE BANK THAT YOU WANT THIS DEACTIVATED FROM YOUR ACCOUNT.

FINALLY, JUST TO ADD MY BIT, THERE IS ALSO THE INSURANCE PREMIUM THAT BANKS PAY FOR HOLDING 'EXCESS CASH ABOVE LIMIT', ALL OF WHICH ADD TO THE TOTAL OPERATING COST INCURRED

musiwa.,.:
ngozi iweala you destroy the economy with bank merge.

OH My GOD, not again, ***********flips out********

MRbrownJAY:
^^
- if you want to make under the table payments to the illegal workers you employ.
- you want to keep a certain amount of cash in your office/home FOR EMERGENCIES etc
- payments have to be made in cash to certain distributors that have been ripped off by bounced checks.
- some businessmen need to be wine dined and entertained before they sign on the dotted line. (high class
hookers and coke cannot be paid for by CC.)

but also
- if you decide at 10pm that you want go out and make it rain in the club.
- you (as a married man) meet a great damsel and want to take her to a top hotel for some bedmatics, would you pay for the expensive room with your CC?!

Why cant' we just engage in engage in discussions like civilized people? UK or USA , there is a cash withdrawal limit, any intent to go above this limit must be communicated in advance to your bank. Also there is a withdrawal limit on both credit and debit cards though they differ amongst banks.

In the US, you are not expected to have more than 10,000 USD on you as cash! I don't know why Nigerians are afraid of change, we keep using popular cliches like 'in the US or in the UK' yet, we are not ready to engage in any form of sacrifice to be like them. I still remember a mild drama that ensued recently at JFK as a result of the above subject matter!

Personally, I cannot remember the last time I walked into my bank to consummate a transaction. Everything is done electronically and online and I enjoy it. We need to deconstruct this our mentality of carrying money in huge sacks et al.

Even with all these efforts, over 70 percent of the Nigerian  populace is un banked and there is over 4.7 trillion Naira outside the banking system! BTW, I don't think your bank will 'close shop' or loose sleep if you, the originator of this thread decides to bury his 'money' or 'monies' (word coined for exclusively for this thread since poster deals in several foreign currencies!) in the ground . In fact , I think it will be the other way round!

Well, let me start by saying sorry about your loss, even before the nationalization of these banks, their shares were virtually worthless in the market. This said, there is still hope because all things being equal, the new owners of the nationalized banks should be able to provide some form of compensation. The sad part about this is that shareholders are usually considered last in this kind of situation and according to AMCON, there is the need to ensure that these banks are in good financial shape (at least to break even point) before  they can be sold off to new investors. This alone, is a painstaking process because of the present apathy for banking sector stocks and general investment climate globally.

Also, there is really no time frame for this turn around and right now, most of these shares are even trading at their 'par value' so I doubt if their future value would be worth anything when the new 'owners' take over. If you have been a shareholder for a long time and enjoyed some dividend payouts, then at least you can console yourself. If not then, it is not a good thing at all.

If I were in your shoes, I would cut my 'losses' and move on because there is no point worrying over those shares again; they are 'dead weight'. The most important thing is to learn from the whole experience so that the same mistakes are not repeated in the future.



Remember the true 'test' of a man is not determined by how many times he falls but how fast he gets up after each fall

Hambolaj01:
Many people are only commenting on this issue without taking into consideration what they ought to have considered first. Who is\was the best Nigerian president ever? Without doubt, it is Muritala Muhammed who only approximately spent six months. After the ex-military leader's assassination, Obj took power and despite the fact that he spent three good years, he failed woefully to repeat the feat achieved by his predecessor not to talk of surpassing it. What i am simply saying is that if he had spent eight years like Babangida as a Military president, he wouldn't have achieved anything just like Babangida again. As if that is not enough, he had the unusual opportunity to come back again to power, this time as a democratically elected President, what did he achieve again? Nothing. Why are some myopic people now saying that he is better than IBB,who is equally very devilish.

On the contrary, I think that IBB had more opportunities as a military head of state to, turn around the fortunes of our great country and perhaps lay the foundation for a greater Nigeria. Democracy, as we all know it, is a very expensive form of governance. Here in the USA, the political impasse between the Democrats and Republicans has made it quite difficult for Obama to find a lasting solution to the rising govt deficit and huge exposure to foreign debt.

Now back to Nigeria, we are still a fledgling democracy, those developed countries that we always use as a basis for comparison have been practicing this form of governance for over two hundred years(citing Britain and USA as good examples) and still , they are not perfect (the recent riots in London can attest to this). When OBJ was elected in 1999, I remember telling someone that I would not expect much from him but to be fair he has done considerably well and he deserves a pass mark.  I don't need to go into details of what he has or has  not achieved. Also, I do acknowledge the fact, that there some decisions he took whilst in power that didn't go down well with a lot of the Nigerian populace including myself but I still think OBJ has performed better than IBB  in all ramifications!


IBB was a military dictator meaning that , he didn't have to seek approval from the national assembly (in fact there was none during this tenure) before implementing any of his policies. It was during IBB's tenure that the Nigerian govt adopted this infamous idea of paying for contracts awarded to foreign companies in foreign currency and even with barrels of crude oil. It was during his tenure, that he succumbed to pressure from the trio of the IFC, World Bank(WB) and IMF to devalue the Naira and introduce SAP(I guess, I need not say more on this! ) Assassination of potential threats or perceived opposition was popularized during his tenure with the aid of sophisticated methods and weaponry (e.g. parcel bomb for the late Dele Giwa)  and the list goes on and on and  on!

IBB laid the foundation for the current moral and social pandemic that has become the backbone our society (i.e corruption) and not to mention that he destroyed the first opportunity Nigeria had at democracy by annulling the freest and fairest election we have witnessed without any form of remorse till date!

No doubt, OBJ has some skeletons in his cupboard too like the failed 'third term' agenda which can be argued for and against, the botched privatization of some govt agencies etc but personally, if I were to pick of the lesser 'evil', I would pick OBJ!