ojesymsym:
Small by small you are beginning to exonerate Meffy.

Even though I benefited from high TB interest rate, I also began to understand when rates were going down that it made sense to reduce it since even at low rates it was still getting oversubscribed, which means that whatever purpose TB serves of mopping up cash could be achieved even at low rates. Some will argue though that the low TB rates necessitated some people to now look towards the USD which invariably increased demand.

I wouldn't put all the currency problems down to meffy... After all, things like fuel subsidy existed before him... But then, his policies have done little to help.

Even if the current TB rate is cut in half, there's a good chance it'd still be oversubscribed... There's a very poor lending infrastructure and banks would rather pay a fine on their reserves than lend them out... Also most of the pension would still find its way to TBs/Bonds irrespective of the rate.
It's still odd why the rates were kept that high... Maybe they saw it as a neans of helping out of recession...But then, such yields should have rather been channeled to the real economy than portfolio investors.....

Thing with meffy is that most of his policies though of good intentions, don't bring results as they fail to address the main issue in a practical way.
Take him going after abokifx fir instance- that has helped to reduce the frenzy around devaluation and provide some stability as the website was about a single point of forex info. But then, if he doesn't get to work and address the underlying issues with the currency, that effect will only be short-lived. Already, there are multiple alternatives springing up who he'd be unable to stop and would do the job better than abokifx.

OgogoroFreak:
Yes, They actually do need SEC license but that does not mean they are out to defraud investors though. They are far from being a ponzi scheme.

^^^ That's my opinion from my experience with them sha.

and you want people to risk their hard earned money based on your 'opinion' alone?
provide a more cogent justification, bikonu

JustforMen:


and you want people to risk their hard earned money based on your 'opinion' alone?
provide a more cogent justification, bikonu

Are you a dummy?

I use them and stated my opinion about them based on my personal experience with them.

When and how did I tell or advice anyone to use them or not to use them?

Old Buffoon!

OgogoroFreak:
Are you a dummy?

I use them and stated my opinion about them based on my personal experience with them.

When and how did I tell or advice anyone to use them or not to use them?

Old Buffoon!

your name says ALL about you.
and what did I say different from what you are insulting your lineage about?

you are still confirming that it is based on your opinion. so what's is the thuggery for?

I simply asked you if all you have is your opinion and your response is to insult your father.
why did you go from 0 to 100 in such a short while?

ok ooo... you can't start your day like this!

JustforMen:


your name says ALL about you.
and what did I say different from what you are insulting your lineage about?
I simply asked you if all you have is your opinion and your response is to insult your father.
why did you go from 0 to 100 in sush a short while?

ok ooo...

I hate dummies.

When you start taking peoples opinion as financial advice, then you certainly have a lot of work to do upstairs - Maybe a brain surgery or something.

OgogoroFreak:
I hate dummies.

When you start taking peoples opinion as financial advice, then you certainly have a lot of work to do upstairs - Maybe a brain surgery or something.

bros, please go and deal with your issues.
I can't be your problem this early.

you actually need to have a brain - and demonstrate ownership - to have surgery on one.

dummies know & identify their own traits - can't argue with that.

have a good morning.

JustforMen:


bros, please go and deal with your issues.
I can't be your problem this early.

you actually need to have a brain - and demonstrate ownership - to have surgery on one.

dummies know & identify their own traits - can't argue with that.

have a good morning.

knocking sense into the head of a...

"fool, idiot, dolt, ass, nincompoop, blockhead, dunce, dunderhead, ignoramus, dullard, slowpoke, simpleton, donkey, jackass, chump, numbskull, dope, twit, nitwit, halfwit, clot, bonehead, fathead, birdbrain, twerp, ninny, numpty, nit, berk, muppet, prat, wazzock"

...is more important to me than anything else.

OgogoroFreak:
Shoving sense down the throat of a...

"fool, idiot, dolt, ass, nincompoop, blockhead, dunce, dunderhead, ignoramus, dullard, slowpoke, simpleton, donkey, jackass, chump, numbskull, dope, twit, nitwit, halfwit, clot, bonehead, fathead, birdbrain, twerp, ninny, numpty, nit, berk, muppet, prat, wazzock"


...is more important to me than anything else.

yeah, I see.
But you don't have to start the day calling your father's names this early na. let your old man rest in peace, wherever he is.
you can't be such a vagabond to start the day listing all your father's characteristics!!!

Hian! What do we term all these ones now?

ojesymsym:
Small by small you are beginning to exonerate Meffy.

Even though I benefited from high TB interest rate, I also began to understand when rates were going down that it made sense to reduce it since even at low rates it was still getting oversubscribed, which means that whatever purpose TB serves of mopping up cash could be achieved even at low rates. Some will argue though that the low TB rates necessitated some people to now look towards the USD which invariably increased demand.

What are your suggestions on how to increase credit facilities to Nigerians and businesses?

We also need to consider the ability of the borrower to pay back the loans

I can say the percentage of customers enjoying credit facilities from financial institutions is less than 1%

The major reason for this is because by default Nigerians do not like to pay back both private, public and institutional loans. If you have time, follow any of the loans shark apps and see how people boldly say they do not intend to pay back what they consciously borrowed.

I can't count the number of things you have talked about being given loans or margins on this forum, why do they give you? It is because you have shown credit worthiness.
All of us have to first work on our credibility issues before accusing financial institutions of not giving us loans when the ones they have even manage to give they are having problems recovering.

emmanuelewumi:



What are your suggestions on how to increase credit facilities to Nigerians and businesses?

We also need to consider the ability of the borrower to pay back the loans

I can say the percentage of customers enjoying credit facilities from financial institutions is less than 1%

ojesymsym:
The major reason for this is because by default Nigerians do not like to pay back both private, public and institutional loans. If you have time, follow any of the loans shark apps and see how people boldly say they do not intend to pay back what they consciously borrowed.

I can't count the number of things you have talked about being given loans or margins on this forum, why do they give you? It is because you have shown credit worthiness.
All of us have to first work on our credibility issues before accusing financial institutions of not giving us loans when the ones they have even manage to give they are having problems recovering.

The loans apps operated by most Fintech platforms are Shylocks who are looking at the upside without considering the down side.

Loans are gtranted based the borrowers cash flow or assets. Why will you give loans to people without considering these. Anyway they give small loans of 100k and below for a maximum of a month.

One of the platforms charges as high as 15% per month at 0.5% per day haba.

For starters we need to start accumulating assets acceptable to financial institutions if we hope to get a credit facility later in the future or better still get a job in reputable organizations and then borrow against our cash flow.


That is why real estate needs to be opened up in such a way that investors can get credit facilities based on their real estate investments and cash flow from the investments.

This message is for the less than 5% who are either financially literate or at least make effort to learn.
People will listen to you more if you say they need to start accumulating assets that makes it easier to get visa to japa.

emmanuelewumi:
For starters we need to start accumulating assets acceptable to financial institutions if you hope to get a credit facility later in the future or better still get a job in a reputable organization and they borrow against your cash flow.


That is why real estate needs to be open up in such a way that investors can get credit facilities based on their real estate investments and cash flow from the investments.

I think Nigerian bank officers should also be educated on Asset Backed loans.

A 59 year old man was denied a loan by his bank because of his age and he his employment status ie retired. He was retired 4 years ago, built 2 houses for rental income and had over N30 million in FG bonds and Blue Chip stocks, but was denied a loan of just N5 million to plots of land and he was considering selling his bonds and shares to finance the purchase.

I told him to talk to his Stockbrokers, which he did and was directed to subsidiary. He got his loan approved within 48 hours and was able to pay back in less than 6 months

We have about N14 Trillion in Pension Fund Assets, I think workers who are 45 years and below, with retirement savings account of at least N5 million should be able to borrow against their retirement account to fund home purchases.


Total assets under management for Mutual Funds is about N1.6 Trillion, I love what the likes of Stanbic IBTC Bank, United Capital, FSDH and few others are doing whereby investors can borrow against the value of their Investments.

We can't blame banks for being cautious on how depositors funds are loaned out

emmanuelewumi:
I think Nigerian bank officers should also be educated on Asset Backed loans.

A 59 year old man was denied a loan by his bank because of his age and he his employment status ie retired. He was retired 4 years ago, built 2 houses for rental income and had over N30 million in FG bonds and Blue Chip stocks, but was denied a loan of just N5 million to plots of land and he was considering selling his bonds and shares to finance the purchase.

I told him to talk to his Stockbrokers, which he did and was directed to subsidiary. He got his loan approved within 48 hours and was able to pay back in less than 6 months

How many of our bankers are really well trained?. Most of them did not really go through the rudiments of banking.

OgogoroFreak:
I hate dummies.

When you start taking peoples opinion as financial advice, then you certainly have a lot of work to do upstairs - Maybe a brain surgery or something.

Hello, this is the comment you made "and you want people to risk their hard earned money based on your 'opinion' alone?
provide a more cogent justification, bikonu"

He never asked people to risk their hard-earned money or invest, he was just stating his personal experience and opinion, you clearly misundertood him

OgogoroFreak

NL1960:


How many of our bankers are really well trained?. Most of them did not really go through the rudiments of banking.

Bankers are trained to judge a business or person based on cash flow which is not bad.

emmanuelewumi:



Bankers are trained to judge a business or person based on cash flow which is not bad.

On the last investor call, Segun Agbanje said they had to pull their retail loan products that were based on cash flow due to credit losses. They were experimenting and trying to do something different from salary loans.

ImperialCovfefe:

On the last investor call, Segun Agbanje said they had to pull their retail loan products that were based on cash flow due to credit losses. They were experimenting and trying to do something different from salary loans.

Imagine, GTB suffered a 30% reduction in their profit after tax.


The bank get as e be

Stanbic own is to keep showing me Eazi loan of 2m. Wetin i wan carry that one do? Nigeria's mortgage industry self is bleeped. I really need some sort of loan that can finance a real estate project but the project also has to be verified by the mortgage provider to avoid stories that touch. Na my next line of research be this so.

There's a lot of opportunities in Nigeria but with a bleeped system, they will only remain as opportunities.

With your Eurobond funds and other mutual fund investments with United Capital, you can get loans up to a maximum of N100 million

Tobex4realTobex234:
Stanbic own is to keep showing me Eazi loan of 2m. Wetin i wan carry that one do? Nigeria's mortgage industry self is bleeped. I really need some sort of loan that can finance a real estate project but the project also has to be verified by the mortgage provider to avoid stories that touch. Na my next line of research be this so.

Cheap at 24% per annum, are you sure of that.


Get project finance for your real estate Investments

jedisco:


I wouldn't put all the currency problems down to meffy... After all, things like fuel subsidy existed before him... But then, his policies have done little to help.

Even if the current TB rate is cut in half, there's a good chance it'd still be oversubscribed... There's a very poor lending infrastructure and banks would rather pay a fine on their reserves than lend them out... Also most of the pension would still find its way to TBs/Bonds irrespective of the rate.
It's still odd why the rates were kept that high... Maybe they saw it as a neans of helping out of recession...But then, such yields should have rather been channeled to the real economy than portfolio investors.....

Thing with meffy is that most of his policies though of good intentions, don't bring results as they fail to address the main issue in a practical way.
Take him going after abokifx fir instance- that has helped to reduce the frenzy around devaluation and provide some stability as the website was about a single point of forex info. But then, if he doesn't get to work and address the underlying issues with the currency, that effect will only be short-lived. Already, there are multiple alternatives springing up who he'd be unable to stop and would do the job better than abokifx.

Very true, since CBN pulled the plug on abokifx, some stability has been attained in the parallel market. They probably should have clamp down on the site when the rate was circa 500 cos Abokifx seems to have colluded with the BDC to arm twist the CBN.
Going forward, there is need to introduce policies that will reduce the pressure on the parallel market. For instance, the monthly $100 limit on debit card can be increased to $500

richforever123:


Hello, this is the comment you made "and you want people to risk their hard earned money based on your 'opinion' alone?
provide a more cogent justification, bikonu"

He never asked people to risk their hard-earned money or invest, he was just stating his personal experience and opinion, you clearly misundertood him

OgogoroFreak

You understand the whole thing but you quote my comment instead of that of the Buffoon JustforMen.

Pedal down guy, the only nuisance we have in this thread is lazzyyut, you have always given us some ogogoro jokes and we love that. Cheers.

OgogoroFreak:
You understand the whole thing but you quote my comment instead of that of the Buffoon JustforMen.

OgogoroFreak:
knocking sense into the head of a...

"fool, idiot, dolt, ass, nincompoop, blockhead, dunce, dunderhead, ignoramus, dullard, slowpoke, simpleton, donkey, jackass, chump, numbskull, dope, twit, nitwit, halfwit, clot, bonehead, fathead, birdbrain, twerp, ninny, numpty, nit, berk, muppet, prat, wazzock"

...is more important to me than anything else.

Seun, Dominique, Lalasticlala, Mynd44 please do something about these insults

pizapato:


Very true, since CBN pulled the plug on abokifx, some stability has been attained in the parallel market. They probably should have clamp down on the site when the rate was circa 500 cos Abokifx seems to have colluded with the BDC to arm twist the CBN.
Going forward, there is need to introduce policies that will reduce the pressure on the parallel market. For instance, the monthly $100 limit on debit card can be increased to $500

Going after abokifx at 570 worked cos things had began to spiral then... I doubt it'd have had thesame effect when the naira was stable at 500... It's just same way governments go after social media during an uprising as they see it as a source of information... And yes, it does work in the short-term...

I'd liken the abokifx issue to putting a bandaid over a deep cut..... There are two possible outcome
1. If the dip cut has already been cleaned and sutured, then the bandaid would enable healing progress
2. If it's just the bandaid alone, the wound will fester on beneath, get infected and explode...

So yes, I agree, the CBN needs to use the relative succour they have now to introduce long reaching policies to stabilise the naira or else, in 6 months we'd have about 10 abokifx, with phone apps and even free sms alert of the market rates.
Already, the effect of the last devaluation has slowly began to hit the market... As I stated earlier, I've come to see it takes 2-3 months to go round.... So the prices of goods are likely to get more expensive over the next month... It's time to brace up

A while ago, Nigeria went borrowing via eurobonds issued between 6-9%...while this was expectedly oversubscribed, and some reasoned that this showed confidence in the market, I can't help but wonder why the rates are that high... The holders of this monies borrowed would have been forced to pay interest to banks if it sat idle in their home nations

Today, over 20% of all dollars in circulation was printed over the last 2 years and more is set to be printed out of thin air. The system is aflush with funds looking for who to lend it to... I remember stating a while back that they US and EU can afford to do that vos they know smaller nations will come begging. Already, that is happening.... Wouldn't be surprised that if the FG may need to organise free crude swaps in future to pay off these debts....

I cannot understand how an individual in the west will walk up to his bank, borrow hundreds of thousands of forex at rates well below 3% to buy a house appreciating at upto 10% per annum, yet a sovereign nation is happy to borrow such forex at 8%. Nigeria is practically giving Western lenders free cash..

This is the way I see the macro picture- an American sits in his house, prints paper outta thin air, a Nigerian goes cap in hand begging for such paper money at the expense of his natural resources and his fellow citizens are happy at being afforded such paper at cutthroat rates

Is it that the monetary system is rigged against poorer nations or poorer nations don't just understand it??

Alot of African nations fail to understand how the modern monetary system works....hence they are at the bottom of it...
Sadly its a system that if you're not at the top, then you're at the bottom and being ripped off... Modern colonisation all over again