₦airaland Forum

Emeskhalifa:
That nonsense was just to save face.
Banks are still paying 5k, 10k max, what has CBN done about that?

do banks even have the cash to pay? This is the issue.

grandstar:
You're again repeating the economic illiterate belief that higher denomination notes cause inflation.

No economics textbook will teach you that.

When the N100 note was introduced in 2001, it caused no inflation, neither did the introduction of the 1,000 note in 2007. Stop spreading myths.

it sure causes inflation, especially in a cash based economy like ours.

Take doe instance a commodity sold for #995, where will the seller get the scarce #5 to remit as change? The price will automatically go up to match the single denomination.

VULCAN:
You have Deepsight as a moniker but you haven't demonstrated that.

His assertion is sound.

N1000 our highest currency is less than the cost of a haircut.

So that places huge demand on our notes

When there is N5000 and N10,000 notes this crunch will ease off naturally.

but in the long run, the problem will resurface. That's a short term solution to a long term problem.

The problem is inflation caused by the govt. We need more money to buy fewer goods, unlike before.

1gbdata:
The banking system is the root of the problem. If customers could easily access their money through ATMs, POS operators would have fewer customers and would be forced to reduce their charges.
However, banks are reluctant to collect cash from the Central Bank of Nigeria (CBN) due to the associated costs, such as transportation, insurance, and security fees. As a result, banks are only using the cash deposited by their customers.
Ironically, by creating artificial scarcity, banks are discouraging customers from depositing their money.
Furthermore, banks are also giving large sums of money to politicians, who hoard it in private vaults.
Lastly, the introduction of transfer charges is not encouraging cashless transactions, exacerbating the problem.

u just dey mention banks, banks, banks.

Tallesty1:
Once a Nigerian believes something, it’s almost impossible to convince them otherwise.

I’ve been explaining to people here that POS operators get their cash directly from business owners. This is why banks are complaining about not receiving enough deposits from retailers. But no, Nigerians are convinced that every POS operator is buying funds from the bank.

it's outright ignorance for anyone to think banks sell cash to POS. Banks that are in the same competition as POS. Banks require same cash to keep their atm functional and make profit.

The common solution to this is to restrict POS operators from receiving more than 20k single transfers into a POS account, and giving out cash of same.

If this is not contained, the govt might have suspend POS for a while.

AirBere:


That's the common misconception and I'll say you are absolutely spot on with this analysis.

Higher denomination banknotes do not directly cause inflation. Although not limited to but inflation is caused by the following.

1. Excess money supply
2. Demand and supply imbalance
3. Economic growth
4. Monetary policy....and others

It's a complex topic to a layman and there's no positive linear correlation between higher denomination and inflation even though it could be a factor but it's a low bar.

With all that said, the biggest problem in Nigeria right now isn't higher denomination.

I think the inflation is the major problem. You need more currency note to buy fewer goods. What 2m can buy just January last Yr, you need about 10m to buy same. This applies to cash required purchases. So why won't there be scarcity of cash?

Sundaymessi:
You go to the bank you are told that there is no money but you go to the POS you can get times three of what the bank couldn't give you.
So where do the POS get their cash from?

did you read the post at all?

Banks source their money from two channels, CBN and retailers.

CBN is going cashless, hence reducing the money they supply to banks. On the other hand, the retailers now prefer to sell cash to POS, who in turn sell to customers, rather than take them to banks. Almost every filling station has a POS they operate or possible sell to POS operator.

Mrhonesty:
The problem is not the CENTRAL BANK but Nigerians. They always do that every festive period and inflate prices of goods. 9ja can only change for good when the people themselves are ready.

so it's Nigerians who made the price of fuel move from 160 to 1200? Very very flawed argument

grandstar:
The issue is not a surprise. It shouldn't be.

The Naira is now a four digit currency. It is bizarre that the highest denomination is only 1,000 naira which is about 60cents. This is ridiculous.

That maximum 100k withdrawal can only purchase 10k goods of 2007. That 100k of 2014 could last you one week. Today, you could finish it in a day. So, you need to keep withdrawing 100k from the ATM each day. This massive turnover is why banks lack cash.

When the Naira became a 3 digit currency, the CBN introduced the N100, 200, 509 and finally the 1,000 note in 2007 if I'm correct. Then the 1,000 note was worth around $8.

There's an urgent need therefore for the government to introduce the 2k,5k and 10k denominations urgently.

Unfortunately, Nigerians would say higher denominations would cause inflation which no topnotch economist would support. An increase in money supply that is higher than the increase in goods and services is whats causes inflation.

The central bank should follow global best practices and introduce higher denominations asap.

you got it spot on. The CBN financial policy is to blame for all this. They created huge inflation in the system, thereby making the people need more cash for little purchase. Just last year, you needed about 10-15k to fill a car fuel tank. Today, you need about 60-80k to purchase the same commodity.

BIenc:
How come the CBN threatened to sanction bank for cash shortage ?

all na wuru wuru to the answer, looking for someone to blame for their policies.

Investopedia

dalass:
Until FG allows an entrepreneur to enter this territory and they have a stiff business competition in energy supply, power supply will remain epileptic.

Dangote opened a refinery and suddenly the PH refinery also quickly started to work..

just like the oil sector right? We can see the magic of cheap fuel all over Nigeria.

What an empty response

saddler:
Double standard and hypocrisy!


Now your defense is that he is the most senior.

But there are other appointments where Tinubu simply appointed Yorubas and didn't use seniority.

even to the point of forcefully resigning those due to the position not Yorubas

Paraman:
Okoro, he's the next in line

the armed forces chiefs appointed, were they all also next in line?

LordBiden:
They paid for the end of the year party show,and as such they are free to air whatever grievance they have with the organizers.

Not everyone eats akpu.

the akpụ is not the issue, I think the soup is not commensurate with the amount they paid. Why will I eat rice in an occasion whr akpụ is served? Wetin be rice?

Jostoman:
Bank is not ignoring CBN order, Banks are Acting on CBN order. Mr CBN governor should stop deceiving Nigerians.

Banks are always the scape goat na. Don't mind them.

Angelfrost:
Nigerian bank apps are supposed to have features that should enable people block or freeze their cards or accounts even during weekends.

This is not rocket science na.

yes they do sir. Most of us just don't take advantage of it due to knowledge gap. Almost all banks app have this feature.

Skydivine:
Every vehicle that arrives into any Lagos port is levied before it leaves the port by Lagos state government. It does not matter if it would be driven or sold in kafanchag

By the way, on the low average, the cost to clear one 40ft container is about #10M.
Multiply by 10,000 containers is #100B.

this is why I blame the northern leaders over the years who think they are doing Igbos. Now it's clear they did themselves. From 1966-date, they held power 2x more than any other region combined. What did they do other than building LAGOS and starving the East of meaningful devt. How on earth will a country as big as Nigeria have its only port to the world in Lagos, despite the TAT it takes to clear goods in Lagos.

The only major infrastructure they can give the East since 1970 is the second Naija Bridge. Tinubu should continue, make everybody ẹyẹ clear.

Donake:
Zombies think SMEs in alaba and ladipo should compete with conglomerates like Banks,Dangote. Compare him to Facebook at once let's begin another foolish argument. Do you know much those markets generate to Lagos State as IGR yearly or for 9months at least?

don't mind the dude. He knows nothing.

He thinks the revenue govt makes form traders is just the shop taxes. There are indirect taxes traders pay.

If 10,000 containers berth at the Lagos port, and let's say each container cost 2m to clear. Multiply this and see what the govt will likely make from the traders. If some of these containers contain cars, for u a buyer to utilise the car, the person must do all registration and pay all levies.

victorVIC1:
Obviously from their income tax. Now you can see it does not make sense when people claim that Nigerians don't pay taxes cos these taxes are absorbed by the final consumers

Nigerians are the most taxed in the world. Don't be fooled by what they are telling you.

Aside the personal income tax we pay ourselves, every commodity you buy in Nigeria, registered under NAFDAC and SON has a VAT attached to it.

Skydivine:
The main problem is that almost all the companies listed there have their branches across all states in Nigeria.
So they make their money from these states but that profit is tallied at the headquarters in Lagos. Meaning In theory that a company in Lagos is making the profit and then the taxes are collected by Lagos government.

How is this right?

the tax reform just opened a big anomaly in the Nigerian tax system. Lagos is just benefiting while others suffer.

Dogalmighty17:
Are you mad? What has them being in Lagos state got to do with anything?

They may be based in Lagos but have most of thier operations all over the country and such make their money from these places.

If these companies were forced to exclusively pay taxes to each state they operate in and not to the federal government that will be a great deal. A company headquartered in Lagos but has its operating base in Nasarawa(like Dangote sugar) should not be paying a majority of its tax to Lagos. The people in Awe local government of Nasarawa state, where dangote has a huge sugar cane farm, should benefit more.

most manufacturing businesses don't even have their factories in LAGOS, all they do is have their headquarter there. This tax reform will create a huge problem for everyone. Apart from Dangote refinery, I don't think any of his factories is in Lagos. Let's watch and see as the drama unfolds. I'm in full support of the Northern leaders in their agitation.

press9jatv:
Wow that’s huge 90% of them are in Lagos State

this is why the new Tax Reform will remain a national problem. All those regions supporting it now will cry after one year.

alpharoyalty:
Islamist are not to be trusted.
Admittedly, Assad was a brutal islamist but this new islamist are going to be more brutal.
All muslim islamist are brutal in different variants. The are all the same.
Forget what western media is saying.
An islamist is an islamist

Saudi Arabia, UAE has shown they can be peaceful if they want to.

Gbogbowa:
can you grow in one year.if you are going to change sharing ration you need to communicate with the people and have an agreement of about 2 to 3 years so that the governors will start to work on how develop VATable company in is region

I agree with you.

You don't just wakeup to change an existing structure to favour you without considering the others, and how they will fare.

Kukutenla:
The north is being strategic and mature in its approach

This is a commendable move and it will be interesting to see what their outcome will be

politics is self interest. That's the wisest thing to do.

Others just dey over react like the bill will favour them either. The only winners are hose who projected it.

MrBanner:
Why is the north bent on being a leech? Don’t they want to grow?

you guys should stop dis razzmatazz

Judolisco:
OK, before you say what sir afe babalola is doing is bad, put yourself in his shoes..... The same thing I said during Femi Falana's saga with bobrisky.... U can't build up your name and reputation for over 30 years and someone will jst wake up one morning and come and spoil it...

I oppose to keeping him in jail over a baliable offence, but farotimi should drop proof of all what he wrote in that book

the legal profession in Nigeria is showing the world what they are made of. writs of habeas corpus in the mud

MadamVanessa:


Desperate woman stoop so low like this, and the man have no iota of respect for a woman he claims he loves.

What's the point of all these? Can't proposals be intimate and private affairs? Some persons even go to the extent of dressing up, visiting a photo studio, and capturing the moment. So childish to me

As for me, I highly doubt I'll ever consider remarriage, despite having numerous suitors at present but if at all I made a change of mind. To any potential admirers, let this be clear, I will not be proposed to in a public spectacle. You don't have any right to kneel down for me while proposing, you don't have the right to expect me to kneel and accept a ring. Try that silly attitude and see me walk away from you.

madam Vanessa zukwanike

So who will implement this? You're in govt sir. Do it if that solves the problem, afterall tuition fee has increased exponentially.

Tianamen1:
Tinubu is still printing Naira, just as Buhari did. I see no difference in their policies.

I see many differences. One has empathy the other lacks empathy and care-less if the people die of hunger.