fkj950ax:


You don't understand how Nigerian economy works.
We don't produce anything and rely heavily on imports. The people we import from require FX to export to us, so we look for where to exchange the NGN we have for USD.

Nigeria is not the only country that depends on imports. We don’t import as much as India. Ordinary Nigerians SAVE money in dollars. That is madness. Trillions of naira that should be in the economy are just sitting in peoples dorm account, worst of all, in foreign currency. The number one thing that drives a currency is confidence. Number two is confidence. Number three is confidence. By increasingly saving in foreign currency, the Naira has entered free fall.
If you’re importing anything, you don’t need dollars. At the point of payment, your bank will do the conversion for you and debit you IN NAIRA. That is how sane countries do it.

DrBiyums:

Nigeria is not the only country that depends on imports. We don’t import as much as India. Ordinary Nigerians SAVE money in dollars. That is madness. Trillions of naira that should be in the economy are just sitting in peoples dorm account, worst of all, in foreign currency. The number one thing that drives a currency is confidence. Number two is confidence. Number three is confidence. By increasingly saving in foreign currency, the Naira has entered free fall.
If you’re importing anything, you don’t need dollars. At the point of payment, your bank will do the conversion for you and debit you IN NAIRA. That is how sane countries do it.

India is currently the go to guy for vaccine production worldwide, this is in addition to other goods and services they produce and export. In Nigeria we import far more than we export and there lies our problem.

In Canada you can comfortably open a USD in addition to your regular account so this your argument is unsustained.

Bankole Wellington contested against Ibrahim Obanikoro, but the people chose Obanikoro. Now look at the kind of proposals he's putting forward at the Federal level.

nex:
Bankole Wellington contested against Ibrahim Obanikoro, but the people chose Obanikoro. Now look at the kind of proposals he's putting forward at the Federal level.

In Nigeria it's either PDP or APC with a touch of APGA in the east

lalasticlala:
A House of Representatives member, Ibrahim Obanikoro, representing Eti-Osa Federal Constituency, Lagos State, has called on the Central Bank of Nigeria (CBN) to close all domiciliary accounts for the next 12 months.

Ibrahim B Obanikoro wrote:

"I am not the CBN Governor but at this moment, I'm of the opinion that CBN should mandate that all dorm accounts be closed for the next 12 months. Let's see the effect on the Naira. After all you can't go to any of the Western world and open a foreign currency account. Your opinion."



Nonsense suggestion!

This Wan Na slowpoke. Another Desmond Elliott spotted

Democracy always ensure the most stuupidd person emerge.

Seniorwriter:


Very Stuuuupid & callous suggestion / advice.


@SENIORWRITER

As you said the idea is stupid. I agree with you, please can you come up with your own idea. The last i check, in America there is nothing like domiciled account. Once you open account, it should be enough for transaction. You only go to bank to get the ROUTING AND SORT CODE for international transaction. But here in Nigeria. We have different account for foreign transaction and local transaction. I think what the guy is trying to say is that CBN should allow people to transact international with Naira account and bank will do the conversion. Instead of going to buy Dollars and put in seperate account and call it DOMICILED ACCOUNT for foreign transaction.

nex:
Bankole Wellington contested against Ibrahim Obanikoro, but the people chose Obanikoro. Now look at the kind of proposals he's putting forward at the Federal level.

As you said the idea is stupid. I agree with you, please can you come up with your own idea. The last i check, in America there is nothing like domiciled account. Once you open account, it should be enough for transaction. You only go to bank to get the ROUTING AND SORT CODE for international transaction. But here in Nigeria. We have different account for foreign transaction and local transaction. I think what the guy is trying to say is that CBN should allow people to transact international with Naira account and bank will do the conversion. Instead of going to buy Dollars and put in seperate account and call it DOMICILED ACCOUNT for foreign transaction

10 years ago, 1 NGN = 3000CFA. today its 1 NGN = 1.3785542 CFA. Francophone countries do not have to devalue their currencies. They do not have any major export products. Ask me how they have been able to control inflation. You dont go to their country and open dorm accounts without central banks approval. allowing people access to FX indiscriminately, causes inflation because some people might be mopping up these fx to sabotage the economy. there are people storing their wealth in FX. CBN can handle all FX transactions through the banks. this will prevent hoarding.

otokx:


India is currently the go to guy for vaccine production worldwide, this is in addition to other goods and services they produce and export. In Nigeria we import far more than we export and there lies our problem.

In Canada you can comfortably open a USD in addition to your regular account so this your argument is unsustained.

To buttress my fellow economist argument. I stand by saying what he said is right and what you are suggesting has no economy backup. The last i check, in America there is nothing like domiciled account. Once you open account, it should be enough for transaction. You only go to bank to get the ROUTING AND SORT CODE for international transaction. But here in Nigeria. We have different account for foreign transaction and local transaction. I think what the guy is trying to say is that CBN should allow people to transact international with Naira account and bank will do the conversion. Instead of going to buy Dollars and put in seperate account and call it DOMICILED ACCOUNT for foreign transaction

DrBiyums:

Nigeria is not the only country that depends on imports. We don’t import as much as India. Ordinary Nigerians SAVE money in dollars. That is madness. Trillions of naira that should be in the economy are just sitting in peoples dorm account, worst of all, in foreign currency. The number one thing that drives a currency is confidence. Number two is confidence. Number three is confidence. By increasingly saving in foreign currency, the Naira has entered free fall.
If you’re importing anything, you don’t need dollars. At the point of payment, your bank will do the conversion for you and debit you IN NAIRA. That is how sane countries do it.

The banks are not capable of providing the FX needs of people who require it. That's what started this in the first place.
CBN cannot provide enough FX to the banks even if everyone wants to pay in naira and the banks do the conversion as you put it.

how is he able to tweet from Abuja

Mangekyo:

Guy Wetin dey worry you eh?
How much dem dey pay you?
This is the closest I've come and you just ruined it. Na God go judge you

Please are they paying for ftc

Dieuetla:


Please are they paying for ftc

Are you new to Nairaland?

Seniorwriter:


Very Stuuuupid & callous suggestion / advice.

All CBN need do to make the naira stronger is to reduce the circulation of the highest denomination of Naira(#1k) ....one of the best ways to strengthen a currency is making it scarce....all these noise about domicile transactions is needless.


We need young visionary leaders in all positions not these dull heads and charlatans parading themselves in position of power.


@SENIORWRITER

Now i understand you now. There is different between being an eloquent writer with good english command and being an economist. I think you are very good in one which is English Writeup but you are not a sound economist. Making Naira scare will cause deflation and too much of money in circulation will cause inflation. I will suggest Nigeria government need to monitor what we import against what we export so as to balance trade. This will strengthen our economy. They can do this by reducing all this unnecessary importation materials like plastics, tooth picks, to mentions but few.

Those things that a normal or average Nigeria can produce that is what is being import in Nigeria. And in economy when what you import is greater than what you export. There is bound to be influx of buying dollars and trading it for their importation which is affecting our economy this days.

Moreso, Tax duties should be waves to encourage more SME scale business in the country. Also i dont see reason why our banking system needs to have seperate account where people buy dollars and funds the account to trade international in name of DOMICILED ACCOUNT. It is not done in China, not done in Europe and not done in USA and UK so why should it be apply here in Nigeria. If you want to transact, informed banks and let bank do the conversion and tells you how much you will pay in Naira. Shikena

DrBiyums:

Nigeria is not the only country that depends on imports. We don’t import as much as India. Ordinary Nigerians SAVE money in dollars. That is madness.

Time will reach if we continue with these useless dorm accounts, you’ll enter a shop in Nigeria and they’ll boldly tell you to your face that they’re not accepting naira

Sewgon79:


And in economy when what you import is greater than what you export. There is bound to be influx of buying dollars and trading it for their importation which is affecting our economy this days.

Moreso, Tax duties should be waves to encourage more SME scale business in the country. Also i dont see reason why our banking system needs to have seperate account where people buy dollars and funds the account to trade international in name of DOMICILED ACCOUNT. It is not done in China, not done in Europe and not done in USA and UK so why should it be apply here in Nigeria. If you want to transact, informed banks and let bank do the conversion and tells you how much you will pay in Naira. Shikena

Exactly. Dorm accounts is what is killing the naira. Crude oil price is rising yet naira is falling, and we can’t do the maths. It is madness to be saving in a foreign currency and expecting your currency to appreciate. Nobody is stopping you from buying foreign items even if you want to buy the whole world. At the point of purchase, your bank does the conversion and payment and debits you in naira. You don’t have any business with dollars.

Sewgon79:


To buttress my fellow economist argument. I stand by saying what he said is right and what you are suggesting has no economy backup. The last i check, in America there is nothing like domiciled account. Once you open account, it should be enough for transaction. You only go to bank to get the ROUTING AND SORT CODE for international transaction. But here in Nigeria. We have different account for foreign transaction and local transaction. I think what the guy is trying to say is that CBN should allow people to transact international with Naira account and bank will do the conversion. Instead of going to buy Dollars and put in seperate account and call it DOMICILED ACCOUNT for foreign transaction

You have sense dear

fkj950ax:


The banks are not capable of providing the FX needs of people who require it. That's what started this in the first place.
CBN cannot provide enough FX to the banks even if everyone wants to pay in naira and the banks do the conversion as you put it.

Bro listen. Banks don’t have enough- so where’re the BDCs getting it from? Is it not from the same CBN? In the world of economics, nothing is ever enough; that is why you have PRICE ACTION. If the banks don’t have enough, the price will increase proportionately; when they have enough, the price will come down. That’s the law of the open market. But because of these devilish dorm accounts, the downward part of the PRICE ACTION never happens in Nigeria! When the dollar is enough, dorm accounts absorb the excess thus keeping the price high. Read Basic Economics by Thomas Sowell. NOTHING. NOTHING. NOTHING. can justify citizens keeping their money in foreign currency. That is the equivalent of a currency coup d’etat.

Useless thing

Sewgon79:


To buttress my fellow economist argument. I stand by saying what he said is right and what you are suggesting has no economy backup. The last i check, in America there is nothing like domiciled account. Once you open account, it should be enough for transaction. You only go to bank to get the ROUTING AND SORT CODE for international transaction. But here in Nigeria. We have different account for foreign transaction and local transaction. I think what the guy is trying to say is that CBN should allow people to transact international with Naira account and bank will do the conversion. Instead of going to buy Dollars and put in seperate account and call it DOMICILED ACCOUNT for foreign transaction

He made a categorical statement saying no where in the world and I provided an example in Canada which allows opening of accounts both in CAN and USD

The thing is we are shying away from the production angle, your suggestion was the norm until the regulatory authorities applied the sledge hammer again in a bid to curtail irresponsible consumption.

The solution to the dollar scarcity requires a robust well thought out approach not a military fiat as in the case of abokifx.

DrBiyums:

Exactly. Dorm accounts is what is killing the naira. Crude oil price is rising yet naira is falling, and we can’t do the maths. It is madness to be saving in a foreign currency and expecting your currency to appreciate. Nobody is stopping you from buying foreign items even if you want to buy the whole world. At the point of purchase, your bank does the conversion and payment and debits you in naira. You don’t have any business with dollars.

Crude oil price is rising, Nigeria crude production is reducing meaning loss of revenue, how can one make up for the shortfall, simple devalue the naira to dollar and watch your revenue in naira increase but then your citizens suffer because their salaries can no longer pay for the imported gas, petrol, flour, drugs, which are still dolarized.

The solution to remove demand in dollar maybe to explore the Chinese angle, some of our imports are from China and we change Naira to Dollar then to Yuan, is it possible to have a Naira straight to Yuan?

Again, really what percentage of our total trade goes to China.

One NWA baby is selling iPhone 13 and people are buying, more demand for dollars and these are more like luxury goods so these are areas government supposed to look into but alas it's even the government via politicians that are big gods to the nwa babies.

One other nwa said she is now selling Turkey furniture in addition to them Turkey gowns, more demand for dollars, nobody is talking of producing in Nigeria.

With the way things are going we will soon start importing water, grass and air.

This dude is sooooooo idiotic

Omooba77:


This is a supposed youth feeding fat on our common resources, he went to school abroad. Contested for Ikoyi/Obalende, but lost. Now a federal rep, to compensate his father decamping to join Tinubu .So CBN should close our dom account bought at 569 to dollar..... The day remains one less..... Time is tickling....

Hmmm well said

This man get sense ehnn

Sewgon79:


Now i understand you now. There is different between being an eloquent writer with good english command and being an economist. I think you are very good in one which is English Writeup but you are not a sound economist. Making Naira scare will cause deflation and too much of money in circulation will cause inflation. I will suggest Nigeria government need to monitor what we import against what we export so as to balance trade. This will strengthen our economy. They can do this by reducing all this unnecessary importation materials like plastics, tooth picks, to mentions but few.

Those things that a normal or average Nigeria can produce that is what is being import in Nigeria. And in economy when what you import is greater than what you export. There is bound to be influx of buying dollars and trading it for their importation which is affecting our economy this days.

Moreso, Tax duties should be waves to encourage more SME scale business in the country. Also i dont see reason why our banking system needs to have seperate account where people buy dollars and funds the account to trade international in name of DOMICILED ACCOUNT. It is not done in China, not done in Europe and not done in USA and UK so why should it be apply here in Nigeria. If you want to transact, informed banks and let bank do the conversion and tells you how much you will pay in Naira. Shikena

Why are you lying to support your point? I've spent some time in the UK and people are allowed to open USD and Euro accounts. I've spent time in the Netherlands and individuals are allowed to open USD accounts. Individuals in Canada can also open USD accounts.

DoggoneDogg:
On what mandate was this unintelligent Oluwole economist elected??
Recall that his lifeless mannequin bullion van leader also suggested printing more naira notes to solve inflation.

Na the famed brains & sophistication wey Afonja people dey always use make mouth be dis?? Na wa

Must you, tribalized everything, abeg this fool opinion is not about tribe but he's fools opinion.

BCISLTD:
After reading like a 100 comments I now that nigeria is doomed....very stupid people...not stopping to think.

The young suggestion is very brilliant.

Suspend all Dom accounts. Convert all their account balance value to naira using CBN rate. And inflows in dollars will be converted to naira using CBN rate...and if ur transferring outside the bank with just Convert and send.

As soon as CBN announces it...they will be a mad rush to sell.....and the price will come down....

This will give CBN full control of the naira

Stupid advice to say the least. If CBN tries it, many who live in Nigeria but have businesses that earn in foreign currencies would stop allowing their foreign currencies to enter the Nigerian economy. They can save their money in foreign banks or fintechs like PayPal, Payoneer, etc., and only bring in what they need for their upkeep. Foreign banks and fintechs can use the money for business, while our banks can't smell it.


Who's losing?

studentofTruth:


Stupid advice to say the least. If CBN tries it, many who live in Nigeria but have businesses that earn in foreign currencies would stop allowing their foreign currencies to enter the Nigerian economy. They can save their money in foreign banks or fintechs like PayPal, Payoneer, etc., and only bring in what they need for their upkeep. Foreign banks and fintechs can use the money for business, while our banks can't smell it.


Who's losing?

You are talking about a small percentage..a small fraction...we are talking about the Nigeria economy


And for people earning in dollars....u think they will mind ... plus th e inconvenience. ...think about it...and where ever u keep ur money as long as its coming into the Nigerian space....CBN rate

Does the CBN not know they caused this when they stopped giving forex to bureau de change?