₦airaland Forum

Junior1212:
As far as I am concerned BDC is not the problem here, if there is enough dollars in banks and they sell at cheap rate for who ever needs it for international trade, education or any other reason who will patronise BDC, BDC has been existing for years how come they are the problem now, because 10-15 years ago the supply side of dollars was higher then, the BDC are only taking advantage because the supply side at the macro level is low. The only speculative purpose I see as bad here are those keeping dollars in their houses, or safe outside the banking system, dollars in the dorm account is still in the system like the naira u keep in your account. The banks can use it for Normal banking functions. The problem is the supply side which is weak. And govt must work on it to solve the problem, any other solution is trial and error and am 100 percent sure it will fail, this forum is here and in the next six months I will come back and show you the damages this trial and error policies has caused.

My brother, be sure this is not trial and error. This is one of many other policies still on the way to take hold of monetary and fiscal control of the Nigerian economy.

It has never work in the past, all along it has been a window dressing by previous governments. The reason Nigerians poor population has been rising.

We have population, productive one at that, but our output is weak and our population will no doubt live life far from quality and poorer household will forever emerge.

With some of the policies, Nigeria banks are getting richer, government is getting while economic saboteurs are taking the real heat and pounding.

No doubt, Nigerians purchasing power is fast diminishing because of the subsidy removal from both ends of oil and currency devaluation.

Where are the money saved from the subsidy at both ends? The truth is that the Nigerian banks are soooo rich now and so is the government.

CBN has halted banks from sharing any dividends at this time, and the reason government is cautioning from pumping the huge savings into the economy by way of palliative and wage increase is to not worsening the already problem of excess local currency liquidity that chase few dollars.

The CBN is currently doing a lot mopping up this liquidity, because we have so much Naira chasing few dollars that Nigerians are unproductively statching away.

I expect with time that government will set a minimum wage that is above 100,000 naira and introduce robust consumer credit program, to set out a consumer driven economy that will spur productivity and drive employment for our teeming youthful population.

Well this forum is still here, in the next 6-8 months we will see how far, I told some people few months earlier when subsidy was removed and till now nothing to show for it only hardship. Govt is rich, banks are rich but the common Nigerian s can't feel it, to me it's useless. It's so unfortunate majority of those money from subsidy is used to finance government. I still refused to accept there's any policy that can help without government creating an enabling environment for investors and empowering Nigerian s to start up businesses, factories etc, at least let's start with us producing what we can consume after sometime we will be big enough to export. If the govt is serious they should do this, shutting down BDC will create more scarcity because CBN and banks cannot meet with the demand now, floating or devaluing naira when we don't have goods and services to give out, any attempt to discourage remittance from diaspora would be disastrous I think it's the only supply of forex now ( which is poor for Nigeria as the giant of Africa). It's so unfortunate no policy has been implemented intelligently so far, I think we should go and prepare for more hardship and suffering. In Economics matter there's no magic, voodoo or prayers.

routed:
My brother, be sure this is not trial and error. This is one of many other policies still on the way to take hold of monetary and fiscal control of the Nigerian economy.

It has never work in the past, all along it has been a window dressing by previous governments. The reason Nigerians poor population has been rising.

We have population, productive one at that, but our output is weak and our population will no doubt live life far from quality and poorer household will forever emerge.

With some of the policies, Nigeria banks are getting richer, government is getting while economic saboteurs are taking the real heat and pounding.

No doubt, Nigerians purchasing power is fast diminishing because of the subsidy removal from both ends of oil and currency devaluation.

Where are the money saved from the subsidy at both ends? The truth is that the Nigerian banks are soooo rich now and so is the government.

CBN has halted banks from sharing any dividends at this time, and the reason government is cautioning from pumping the huge savings into the economy by way of palliative and wage increase is to not worsening the already problem of excess local currency liquidity that chase few dollars.

The CBN is currently doing a lot mopping up this liquidity, because we have so much Naira chasing few dollars that Nigerians are unproductively statching away.

I expect with time that government will set a minimum wage that is above 100,000 naira and introduce robust consumer credit program, to set out a consumer driven economy that will spur productivity and drive employment for our teeming youthful population.

Rolings:
So we have been hearing for long.....yet it hasn't happened.., USA claimed we won't survive past 2015....but here we are
The fact is as some are pulling the country backwards many others are doing all they can to move it forward.
And My personal opinion...,. Those numerous churches, mosques and religious houses scattered all over the country always pray for the country......it's their prayers that has been keeping and will keep the country going until its stable.....it seems funny but I believe if not for those prayers the country would be gone

and since 2015 would you say you have a country called Nigeria? The process had already begun and there is no stopping it. Some parts of the country are no longer under the control of government, but no journalist will be brave enough to tell you this.

Junior1212:
Well this forum is still here, in the next 6-8 months we will see how far, I told some people few months earlier when subsidy was removed and till now nothing to show for it only hardship. Govt is rich, banks are rich but the common Nigerian s can't feel it, to me it's useless. It's so unfortunate majority of those money from subsidy is used to finance government. I still refused to accept there's any policy that can help without government creating an enabling environment for investors and empowering Nigerian s to start up businesses, factories etc, at least let's start with us producing what we can consume after sometime we will be big enough to export. If the govt is serious they should do this, shutting down BDC will create more scarcity because CBN and banks cannot meet with the demand now, floating or devaluing naira when we don't have goods and services to give out, any attempt to discourage remittance from diaspora would be disastrous I think it's the only supply of forex now ( which is poor for Nigeria as[b] the giant of Africa[/b]). It's so unfortunate no policy has been implemented intelligently so far, I think we should go and prepare for more hardship and suffering. In Economics matter there's no magic, voodoo or prayers.

Giant failure of Africa

Junior1212:
Well this forum is still here, in the next 6-8 months we will see how far, I told some people few months earlier when subsidy was removed and till now nothing to show for it only hardship. Govt is rich, banks are rich but the common Nigerian s can't feel it, to me it's useless. It's so unfortunate majority of those money from subsidy is used to finance government. I still refused to accept there's any policy that can help without government creating an enabling environment for investors and empowering Nigerian s to start up businesses, factories etc, at least let's start with us producing what we can consume after sometime we will be big enough to export. If the govt is serious they should do this, shutting down BDC will create more scarcity because CBN and banks cannot meet with the demand now, floating or devaluing naira when we don't have goods and services to give out, any attempt to discourage remittance from diaspora would be disastrous I think it's the only supply of forex now ( which is poor for Nigeria as the giant of Africa). It's so unfortunate no policy has been implemented intelligently so far, I think we should go and prepare for more hardship and suffering. In Economics matter there's no magic, voodoo or prayers.

But this policy doesn't discourage remittances. It just ensures the Banks benefit from the remittances.
Also, do you really believe there's no subsidy on PMS today? I believe there's subsidy but unlike Buhari who printed trillions of naira for the subsidy and allowed subsidy affect our budget, this Government is subsidising directly with dollars instead and this may be part of the reason for the depreciation of the naira. But it's better than subsidising with naira budget because all we just have to do to turn the tide is increase crude oil production but with less budget deficit and less naira printing.

Junior1212:
Well this forum is still here, in the next 6-8 months we will see how far, I told some people few months earlier when subsidy was removed and till now nothing to show for it only hardship. Govt is rich, banks are rich but the common Nigerian s can't feel it, to me it's useless. It's so unfortunate majority of those money from subsidy is used to finance government. I still refused to accept there's any policy that can help without government creating an enabling environment for investors and empowering Nigerian s to start up businesses, factories etc, at least let's start with us producing what we can consume after sometime we will be big enough to export. If the govt is serious they should do this, shutting down BDC will create more scarcity because CBN and banks cannot meet with the demand now, floating or devaluing naira when we don't have goods and services to give out, any attempt to discourage remittance from diaspora would be disastrous I think it's the only supply of forex now ( which is poor for Nigeria as the giant of Africa). It's so unfortunate no policy has been implemented intelligently so far, I think we should go and prepare for more hardship and suffering. In Economics matter there's no magic, voodoo or prayers.

Patriot, you are a fine Nigerian. So soothing engaging someone like, you are a sincere and truthful individual.

This hardship is expected and it will endure for a while if we will speak the truth to ourselves.
Nigerians don't deserve unproductive and too cheap living despite our to do ability and productive population.

Our economy with huge subsidy, debt and over 50trillion naira liquidity of printed money with meager productivity is bound to collapse in totality if this needed surgery is not done.

Again, federal government has huge debt of 30billion owed to the CBN. This trajectory would've sank us by now as the previous governments was printing money to pay salary and for government businesses.

All these liquidity must be cleaned up for healthy fiscal and monetary policies implementation.
This is exactly what the CBN is doing as of now.

Meaning, CBN is not advancing credit to the government for now, no sharing of dividends by bank and no subsidy for the citizens to clean up the mess.

On the BDC, you know BDC is not printing money and the bulk of the money that BDC hold is from the CBN. CBN is the source of all foreign currency that BDC hold.

Try understand this, bro. If you as a diaspora Nigerian send dollar to family from US. Nigerian banks get wire money, not physical dollars but physical dollars was advanced to your family member by the Nigerian bank.

A staff of the bank gave a BDC number to call to your family member. The BDC operator collected the physical dollar from your family member and gave him Naira equivalent at speculative price that he feels favors himself not your family member.

Remember, the dollar you sent never leave the US but wire instructions to pay. Who then find the physical dollars to pay your family member? Yeah! You are right. "The CBN".

Mind you, CBN can't print dollars, he has to earn it from the sale of crude oil and export from other hardworking Nigerians that bring 8n foreign currency.

Why do we have to pay the diaspora remittances in dollar that didn't get to Nigeria, which eventually get into speculative market of BDC that put pressures on you and me. So the need to pay in Naira.

This policies will bring in more dollars because the market is uncapped, bank can sell as they feel it makes good profit margin to them in willing buyer and willing seller transactions.

It's not the BDC that's putting pressure on us, we are in this situation because dollars supply is low, that's why it look like the BDC is relevant, if u can enter any bank and get forex for any purpose easily and cheaper the BDC will suddenly go out of business, I said this earlier. The only speculation I see are those keeping forex outside the banking system, Finally any policy that will not help increase dollar supplyis what is required now, any other is a waste of time it's like taking Panadol to treat malaria.
We are here let's see in the next six months how the policies implemented so far can help. From a professional point of view, all I see is blunders things may get worse in the next six to eight month.

routed:
Patriot, you are a fine Nigerian. So soothing engaging someone like, you are a sincere and truthful individual.

This hardship is expected and it will endure for a while if we will speak the truth to ourselves.
Nigerians don't deserve unproductive and too cheap living despite our to do ability and productive population.

Our economy with huge subsidy, debt and over 50trillion naira liquidity of printed money with meager productivity is bound to collapse in totality if this needed surgery is not done.

Again, federal government has huge debt of 30billion owed to the CBN. This trajectory would've sank us by now as the previous governments was printing money to pay salary and for government businesses.

All these liquidity must be cleaned up for healthy fiscal and monetary policies implementation.
This is exactly what the CBN is doing as of now.

Meaning, CBN is not advancing credit to the government for now, no sharing of dividends by bank and no subsidy for the citizens to clean up the mess.

On the BDC, you know BDC is not printing money and the bulk of the money that BDC hold is from the CBN. CBN is the source of all foreign currency that BDC hold.

Try understand this, bro. If you as a diaspora Nigerian send dollar to family from US. Nigerian banks get wire money, not physical dollars but physical dollars was advanced to your family member by the Nigerian bank.

A staff of the bank gave a BDC number to call to your family member. The BDC operator collected the physical dollar from your family member and gave him Naira equivalent at speculative price that he feels favors himself not your family member.

Remember, the dollar you sent never leave the US but wire instructions to pay. Who then find the physical dollars to pay your family member? Yeah! You are right. "The CBN".

Mind you, CBN can't print dollars, he has to earn it from the sale of crude oil and export from other hardworking Nigerians that bring 8n foreign currency.

Why do we have to pay the diaspora remittances in dollar that didn't get to Nigeria, which eventually get into speculative market of BDC that put pressures on you and me. So the need to pay in Naira.

This policies will bring in more dollars because the market is uncapped, bank can sell as they feel it makes good profit margin to them in willing buyer and willing seller transactions.

Ttalk:
Good for the economy.

A government that is bold enough to remove subsidies should not be afraid of any backslash that may arise from any measure to save the naira.

Let all remittances be converted to the naira equivalent so the government can have enough dollars for people doing genuine business in need of dollars.

All domiciliary accounts with idle dollars should be taxed.

It's interesting to see that many people liked this opinion.

I still don't understand how a policy of this sort would be hailed while there's still disparity between official and parallel rates, giving room for round-tripping. You would do better fighting the corruption.

And what gave you the impression that corrupt people in government and financial institutions won't still corner the foreign currency received and take it to the parallel market again?

Imagine getting your USD proceeds converted to Naira at N1513/$ yesterday, only to wake up today and found that the rate was N1565. Have I lost or gained? Mind you, USD would still be needed for some important international transactions.

As to the bold, your idea of taxing domiciliary account balances could be very counter productive. That's like saying savings account balances should be taxed! Such a move could discourage people from sending foreign currency to their accounts in Nigeria, unless they have an urgent need or the economy stabilises.

I remember years ago when I was making regular, low hundreds of dollars online, a similar policy as this was introduced. My USD earnings were converted at a rate like N100 or more lower than the parallel rate and N50 or more lower than the official sell rate.

That meant if a $100 incoming payment got converted to N33,500, I would need N38,500 or more to pay for a $100 transaction online. Needless to say that I stopped receiving money to local accounts.

ThaThinka:
It's interesting to see that many people liked this opinion.

I still don't understand how a policy of this sort would be hailed while there's still disparity between official and parallel rates, giving room for round-tripping. You would do better fighting the corruption.

And what gave you the impression that corrupt people in government and financial institutions won't still corner the foreign currency received and take it to the parallel market again?

Imagine getting your USD proceeds converted to Naira at N1513/$ yesterday, only to wake up today and found that the rate was N1565. Have I lost or gained? Mind you, USD would still be needed for some important international transactions.

As to the bold, your idea of taxing domiciliary account balances could be very counter productive. That's like saying savings account balances should be taxed! Such a move could discourage people from sending foreign currency to their accounts in Nigeria, unless they have an urgent need or the economy stabilises.

I remember years ago when I was making regular, low hundreds of dollars online, a similar policy as this was introduced. My USD earnings were converted at a rate like N100 or more lower than the parallel rate and N50 or more lower than the official sell rate.

That meant if a $100 incoming payment got converted to N33,500, I would need N38,500 or more to pay for a $100 transaction online. Needless to say that I stopped receiving money to local accounts.

So what should the Government do? Without this policy, how do we receive foreign remittances into the official channels?

GeneralDae:
So what should the Government do? Without this policy, how do we receive foreign remittances into the official channels?

That's not my work. I mean you didn't vote for me neither was I appointed to any position.

But seriously, those in the position of authority know what do. They are just not ready to do it.

For instance, a Middle East country reportedly sent a list of terror sponsors to the Nigerian government years ago. What has come out of that?

Yet, insecurity is also a major reason productive activities are not happening near their potential level right now.

Nigeria was hugely reliant on agriculture in the past, including for exports. Now, farmers cannot carry out their work with peace of mind. Even me sef for like involve in agriculture, especially crop farming, to an extent even if as a hobby. But the security challenges no fit make me dare am.

PS: I just realised that you're more interested in how to receive remittances. I used to sell funds to people online back then. There are several apps that you can receive payment through right now. They help you convert your foreign currency to Naira.

Throwback:
That will always happen when back channels exist.

If water-tight, there will be no other channel except the official channels and the Emefiele scenario would not play out again.

Water tight?
Ppl still smuggle stuff into jail
When in the history of incompetent govt has anything been water tight
Country where ships go missing
Snakes swami money
And 220 fuel tankers cross border everyday

I love your passion despite its naivete
But you will learn
Shebi dollar Alessi going up
We will see whether you will force ppl to remit dollars to banks for round tripping

You haven't learnt anything from emefiele ba

Theology:
Please can you confirm this
https://businessday.ng/news/article/no-plan-to-convert-domiciliary-account-dollars-to-naira-vows-cbn-finance-ministry/

It's not true, ignore rumour mongers

GeneralDae:
In the past, CBN normally had their rate which was way lesser than the black market rate.

Anyone sending money to Nigeria would not want to send to Nigeria at 900 naira when there is a black market rate that is higher at 1400 already. So the likes of Sendwave. lemfi, etc were bypassing the official banks and storing dollars sent by diaspora in offshore accounts while they ensured their rates were closer to the black market rates.

What Cardoso has done now is take things back to what they were before 2020 COVID when Emiefele started changing things and when Shonobi in 2023 added another complexity to it with 2.5% cap (plus and minus).

Cardoso has brought the official exchange rate closer to the black market again.
Official rate as at yesterday = 1474
Black market rate as at yesterday = 1482
With this, apps can send money home to the Banks and official market and get it at a rate close to the black market and would not have to play Hankey pancky.

brilliant

6 months later, what has changed?