₦airaland Forum

PabloOmoEscobar:

BraniacX:
GBAM!!!!

So, are you as an industry insider? If you are, you just confirmed mine and many a Nigerians educated guess/suspicions! That there is actually a government policy twist to this!
I hope your nairaland account can not be traced to you if you are a banking industry insider, I will hate to see you victimised for this revelation


1wolex85 are you reading this?

Leopantro:
Have you noticed the crowd at ATM at banks recently. Most time, only 1 or 2 of the machines would be dispensing or non at all. Within the bank hall, the story is not different. Stories are being told of inability of banks in paying money over the counter; clients told to wait until people deposit enough for people to be paid. Was in GTB where a cashier told a man who came to clear a cheque that they were not financial capable of honouring the check, if he could come back later. The sum of the cheque ; N200,000.
This is a normal occurrence during the festive season but you will agree that the degree is particularly higher this year. Sadly, this is an unfortunate but indirect deliberate action from the FG arising from 3 main reasons producing "the butterfly effect"

1. FG FINANCIAL SHORTFALL; as is painfully obvious, the FG has been unable to pay salaries of most of its agencies and civil servants for the past month or two. Although there has been renewed drive in boosting the private sector, the bulk of money in circulation arises from the FG. The short fall is attributed to the economic recession currently affecting the country as well as stringent polices undertaking by the FG. This is further worsened by the inability of the CBN to checkmate the free fall of the Naira against the dollar. For the first time in years civil servants are being owned months as against the promise of being paid on the 25th of the month. The current predicament was foretold by the CBN about 5 months ago but was unfortunately down played by the FG that assured that it was capable of paying salary till the end of the year. With the skyrocketing of prices of products and the reduction in purchasing power of the currency. has made the yuletide one of the most difficult ever experienced.

2. In order to reduce recurring cost, the FG has told the CBN to stop printing new notes. Apparently, the cost of minting a new naira note is more than the face value of the note. This reduces FG cost in making money as a salvage means of saving money during this recession. The problem is this is a standing order that has been in effect for the past 6 months. Also, old and dilapidated notes are constantly being removed. This reduces the physical cash in circulation. Combined with the reduced purchasing power of naira notes, this creates an artificial scarcity. Considering that Nigeria is yet to achieve a cash less policy, ongoing recession, dependence on imported products as well as inability to locally produce such imported goods, this creates a stagnation in the economy

3. Due to 1 and 2 above, as well as well inability to achieve the budget benchmark for oil, repeated destruction of oil tanks, TSA effect on banks, etc, the revenue generating capability of the FG has drastically reduced. This has also affected the CBN's ability to provide a key function; cash flow. Ideally, the CBN lends finance in the billions and high millions to banks in the country on a daily basis at a certain interest rate. The banks allocate the shared amount to their various branches based on certain factors. Banks can also request for and loan other banks funds at certain rates on a daily basis.

Due to the above reasons, there is a drastic reduction in the amount the CBN can now give to banks. This also reduces the allocation banks give to their branches either on a daily or alt day regimen. Although such branches can generate money based on deposits but during the Yuletide season, the withdrawals are usually more than the deposits. As such, branches develop certain means to maintain the flow of physical cash I.e not honouring cheques above a certain amount, deliberately utilizing one or two ATMs, delays in over the counter withdrawals. Zenith bank in some states have placed a daily limit of 50,000 on withdrawals. Online transactions are not excepted as the sheer number of users have also increased; bank to bank transfers still works but payment of bills and services may experience hitches and delays. Unfortunately, considering the end of the fiscal year has been moved from January to March, such abnormalities may persist well into the next year.

BraniacX:
Thanks for enlightening me as you can observe, I'm not an industry insider.
So you mean to say if i understand you correctly, that the banking industry is still very much liquid but not all branches of all banks, and that the problem arises from moving cash from a branch were it is less needed to a branch where it is in higher demand

If so, shouldn't the industry have prepared for the cash rush during this season beforehand because i am sure they knew what to expect or is there something i am missing?

coolk:
Hmmm....

The CBN restricted banks from accessing above 10 million naira, perhaps to control inflation or the depreciation of the naira.
They (i presume) hope to create a sort of cash crunch / artificial scarcity to drive the prices of commodities down during this yuletide.

They don't care who suffers.

The average nigerians (masses) are denied their hard earned cash to buy essentials, while the upperclass with excess liquidity larvish themselves with luxury.

The level of cluelessness in this current administration is beyond words.

Lionofdjungle:
You can see that there is no difference between MMM and banks. MMM froze its operations till January, banks equally systematically regulated the way they dispense money. That shows that they too don't have enough money in circulation to give to all their customers. If all the customers of a bank decided to collect their money at the same time, such a bank would fold up. They too are using another person's money to pay a customer. The same principle that Mavrodi uses. Why then, do you want to crucify Mavrodi?

Leopantro:
Have you noticed the crowd at ATM at banks recently. Most time, only 1 or 2 of the machines would be dispensing or non at all. Within the bank hall, the story is not different. Stories are being told of inability of banks in paying money over the counter; clients told to wait until people deposit enough for people to be paid. Was in GTB where a cashier told a man who came to clear a cheque that they were not financial capable of honouring the check, if he could come back later. The sum of the cheque ; N200,000.
This is a normal occurrence during the festive season but you will agree that the degree is particularly higher this year. Sadly, this is an unfortunate but indirect deliberate action from the FG arising from 3 main reasons producing "the butterfly effect"

1. FG FINANCIAL SHORTFALL; as is painfully obvious, the FG has been unable to pay salaries of most of its agencies and civil servants for the past month or two. Although there has been renewed drive in boosting the private sector, the bulk of money in circulation arises from the FG. The short fall is attributed to the economic recession currently affecting the country as well as stringent polices undertaking by the FG. This is further worsened by the inability of the CBN to checkmate the free fall of the Naira against the dollar. For the first time in years civil servants are being owned months as against the promise of being paid on the 25th of the month. The current predicament was foretold by the CBN about 5 months ago but was unfortunately down played by the FG that assured that it was capable of paying salary till the end of the year. With the skyrocketing of prices of products and the reduction in purchasing power of the currency. has made the yuletide one of the most difficult ever experienced.

2. In order to reduce recurring cost, the FG has told the CBN to stop printing new notes. Apparently, the cost of minting a new naira note is more than the face value of the note. This reduces FG cost in making money as a salvage means of saving money during this recession. The problem is this is a standing order that has been in effect for the past 6 months. Also, old and dilapidated notes are constantly being removed. This reduces the physical cash in circulation. Combined with the reduced purchasing power of naira notes, this creates an artificial scarcity. Considering that Nigeria is yet to achieve a cash less policy, ongoing recession, dependence on imported products as well as inability to locally produce such imported goods, this creates a stagnation in the economy

3. Due to 1 and 2 above, as well as well inability to achieve the budget benchmark for oil, repeated destruction of oil tanks, TSA effect on banks, etc, the revenue generating capability of the FG has drastically reduced. This has also affected the CBN's ability to provide a key function; cash flow. Ideally, the CBN lends finance in the billions and high millions to banks in the country on a daily basis at a certain interest rate. The banks allocate the shared amount to their various branches based on certain factors. Banks can also request for and loan other banks funds at certain rates on a daily basis.

Due to the above reasons, there is a drastic reduction in the amount the CBN can now give to banks. This also reduces the allocation banks give to their branches either on a daily or alt day regimen. Although such branches can generate money based on deposits but during the Yuletide season, the withdrawals are usually more than the deposits. As such, branches develop certain means to maintain the flow of physical cash I.e not honouring cheques above a certain amount, deliberately utilizing one or two ATMs, delays in over the counter withdrawals. Zenith bank in some states have placed a daily limit of 50,000 on withdrawals. Online transactions are not excepted as the sheer number of users have also increased; bank to bank transfers still works but payment of bills and services may experience hitches and delays. Unfortunately, considering the end of the fiscal year has been moved from January to March, such abnormalities may persist well into the next year.

eezeribe:
Owerri is a city for pleasure... You need to see the number of Hotels and Fastfood Restaurants there...
In fact, I need marketers in owerri

samx4real:
There are millions of graduates at home doing nothing... So if this resident doctors want people to die... Let FG send them to the farm and employ new ones.



Bad Nigerian

Chykeboss:
the media won't show u this , d mod won't move it to frontpage. great mavrodian d community will bounce back better. DON'T PANIC Donation of rice at summit villa life camp abuja today. Givers never lack #istandwithmmm

itasakpa:
guys beware this is a scam s

samhay:
Straight to the point.


I enjoy doing most of my things indoor or online, let me say I hate traveling a distance more than 15minutes.

Each tym I travel for longer period, I feel so weak, tired and sometimes feel like throwing up. This has nothing to do with the smell of fuel.

The last tym I went on a long distance trip was couple of weeks ago and since I knw how I always feel, I tried something different. I do keep to myself and either listen to music through my headset or surf the Internet but this last trip, I tried being active and lively. We discussed although the journey but as soon as I alighted from the car........ The usual feeling crept in.

I just heard some called it MOTION SICKNESS

Do you experience the same thing?
What do you do?


Lalasticlala
Mynd44
Seun

WilliamsNedd:
Yes of course.

WilliamsNedd:
What is wrong with Nigerians? If you do this,they will talk,u do thay they will still talk. What do you want from me? Can't someone have a change of heart? Two weeks ago? I don't get you. Yes I said that it was a scam but you can go back to the thread I created and see yourself. Its been modified. Funny enough,it was the day before yesterday I created that particular thread. So please select your adjectives very well when addressing me.