₦airaland Forum

Enangson:
Nigerians should also be ban from schooling or embarking on any kind of trip abroad so as to boast the economy.

Atmmachine:
Bullshit.
I repeat again, Bullshit.

Banning the use of ATM cards abroad ain't the solution to Naira's problem.
You can't send Western union out from Nigeria to other countries, when Nigerians abroad get low on cash and decides to steal, Una go say them dey bring us bad name.
Another bullshit.
Who are you gonna deceive with that pile of steaming shiit you just wrote.
I have a degree in Marketing.
You're making Nigerians look uneducated.
Have you heard of Pegged Exchange Rate ??
It's a type of Exchange Rate regime where a currency's value is fixed against either the value of another single currency.
In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.
The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
Jamaica, United kingdom and the United States of America also used the method.

I wish i can see you face to face so i can seize your degree and send your ass back to primary school

erico2k2:
U think you are clever now abi.U just exposed ur ignorance the more.try and travel out for mayB 2 weeks mayB you might see more sense who told you Naira ATM is for school fees and minor sundry expenses. Y do you think we have atm machines the dispense Dollars. Euro and Yen at Heathrow. JFK and Frankforth? Most shops abroad are more con for table with your Atm than cash.Holiday makers use their plastic not cash.can I use my barca us card in Nigeria No cos of our wack exchange get rate what do I do? I wire my no eye to my 1st bank account at higher rate via 3rd party age t and pay the fees.it takes 1 minute.

erico2k2:
Wetin concern me.I only get 10 more days 4 9ja after that Holiday ova bck to UK so wo nor fit read wetin I type shud go n diee

dumo1:
Oga op u were just blabbing and comparing amount of money spent. No solution in sight to the pending problem cos I school in Ghana most of your points were reasonable tho, and I have no problem with the limit of cash to be spent in a day but there shouldn't be a total ban on the card totally.

MusaIbrahim1:
OP na big Mumu, so nobody should go outside to study again, abi? Because the dollar is nose diving....


This is lame


What happens to those that studied outside the country, got a job outside the country and still sends money to their love ones in Nigeria? We have learned people outside the country that still have a lot of investment in this country... Is that not money coming in?


By stopping ATM and stopping abroad study, do you know the number of knowledge and money that will be lost? I see a future where Indian doctors will take over everything...

godoluwa:
to be honest, these will affect a common man negatively. lets just wait & see how the event unfolds from friday. btw, wetin make u deactivate ur account abi u don use am scam ni?

rottennaija:
For naira to increase in value, Nigeria have to export. Exportation comes from production. Do you think it is what can happen in a month or two?

Amberon:
Dear Musa,

you're mistaken. there isn't a total ban on the naira ATM. there's only restrictions on the daily withdrawal limit which is $100 currently. There also isn't a ban on schooling abroad.

macklef:
Hahah. Sheyb na d reason wey u dey argue one sided b dat na. Hope say dem nogo ban flights out from Niger before then o cos una get moni to spend here other dan to go spend for obodo oyinbo

njikoamaka:
Nigerians will soon be restricted on the amount to withdraw maybe, 10k max in a day.

Vikings007:
lmao! Nope. I no want followers.

ojuolu:
Mr wise man, don't be too myopic. You are looking at it from your own personal perspective, the impacts and effects on you and the inconvenience you tends to experience (albeit in the short run). The policy is not targeted at simple users like you and I (i travel out too for more than two weeks atimes). The targeted impacts are on the aggregate economy and the exchange rate. I won't go deeper than this. But please note that Nigeria is not utopian in nature. Other economies are not too. We are all praying for a better and more robust economy. We as a people have a very high MPC (marginal propensity to consume) as displayed by the irresponsible way in which the past leaders and managers managed the oil windfall of the past years. We all need to sacrifice now to correct these anomalies and help the country on it way to greatness. I will implore you to please research the "Impact of International Trade on Economic Growth in Nigeria" in the face of a monoculture export commodity with dwindling revenue that face us now.
God bless Nigeria. God bless us.

ImpactWorld:
This is ridiculous.
Does this mean Nigerians are no longer free to spend their OWN money as they deem fit?

IbXavier:
By : Apena Ibrahim Adeboye

This is a personal analysis which is subjected to empirically backed criticism.

As at 7th of December 2015, Naira to dollar stood at ₦250 to $1, which was the highest fall of Naira to Dollar in history (Reference 1). As at today 28th of December, 2015, Naira to dollar stands at ₦197 to $1 (Reference 2), this shows there is an improvement.

All the same, have you ever asked why the value of Naira keeps dropping its value, Have you ever imagine if exchange rate of naira to dollar stands at ₦500 to $1, Did you make research on why use of NAIRA ATM abroad was ban ? (Kindly read reference 4 to know why). All these will help us understand the effect of the Ban of Naira ATM usage outside Nigeria.

It’s no news that some Nigerians in Diaspora are working towards protesting against the ban of Naira ATM abroad, especially those studying. With due respect, it's shameful that some Students who schooled or are schooling outside the country, especially those who offered or are offering business related courses do not understand why the inability to use Naira ATM outside Nigeria will be better off in the long run. Let’s kindly visit Economics as a course before complaining, though I am not an economics expert but I will apply the fair knowledge I have by the grace of God.

Let’s start with a simple analysis, this analysis will focus mainly on those schooling outside Nigeria;

SCENARIO ONE
Schooling Abroad and its effect on Naira. (Nigerians Schooling in Ghana as a case study)
The case study below is used for about 200,000 Nigerians schooling in Ghana, according to statistical fact (Reference 3)
Scenario Effect on Naira & Nigeria economy
1. Average School fees for a student per year ₦400,000_ Naira Out , Nothing In ,
2. Accommodation for about ₦100,000_ Naira Out , Nothing In,
3. Living expense of about ₦300,000 _ Naira Out , Nothing In,
Total expenses incurred by a Foreign trained Nigerian annually _₦800,000 Out, Nothing In.

Cost for 200,000 students per year ₦160,000,000,000 (₦160B)
Total expenses in 4 years ₦640,000,000,000 Out, Nothing In

Note:
Living expenses of 200,000 foreign trained in Ghana alone for a year is about ₦60,000,000,000 (₦60B)

Over 200,000 Nigerian were schooling in Ghana as at 2013.
(Reference 3)
SCENARIO TWO
1. Mr Ade imports phone to sell in Nigeria with about ₦100,000 each.
2. A student who schools in Ghana left this phone to buy the same worth of phone in Ghana.
EFFECT OF SCENARIO TWO
1. ₦100,000 gone out of Nigeria, ₦100,000 worth of Phone Imported (balanced)
2. ₦100,000 worth of phone ignored by student, yet such student took another ₦100,000 out of Nigeria to buy same phone in Ghana without any return to Nigeria. This means Nigeria has lost 100,000 to the Ghana Market despite having such product in Nigeria. Funny enough, if such phone is stolen before such student gets back to Nigeria, it means such student has made Ghana economy ₦100,000 better.

In one semester, an average Nigerian Schooling in Ghana must have spent about 800,000 of Nigerian currency in Ghana. Assuming we have about 200,000 Nigerians schooling in Ghana, it means about ₦160B is spent in Ghana education system within a year without any monetary return for Nigeria. Assuming this 160B is invested in Business , it would have been better because we would get goods in return for such chunk of money going out of the country , bear in mind that there are a lot of Nigerian students scattered around the world, Just imagine how much schooling abroad alone is taking out of Nigerian economy annually, imagine how much money spent on luxurious items , Health and so on in Ghana and other countries, Trillions of Naira. Have you imagined what it would look like if these monies are invested in our educational sector? That by the way.

After schooling abroad, some of the foreign trained do not even think of coming back to create jobs in the country, they rather think of coming back to earn from a white collar job, having used their certificate to bully home trained Nigerian Graduates. Does this really justify the huge amount spent on education outside Nigeria, Though, it’s a fact that knowledge must have been acquired and one can spend as much as possible to acquire knowledge.

As an average Nigerian Schooling outside the country, it’s normal to feel very bad when such news is broken (Ban of Naira ATM abroad). However, it will be a big disgrace to jump up to protest over it without understanding what is being protested about.
The question is simple ,
1. Do we prefer the value of naira to keep falling while we have access to spend naira anyhow outside Nigeria or we reduce the amount of naira going out and maintain a valuable naira.
2. The amount of Nigerians in diaspora are not up to 20% of those in Nigeria, thus , do we suffer those in Nigeria for the happiness of those in Diaspora or those who travel out to flex on vacation.

Imagine you wake up one day to see the exchange rate of naira to dollar standing at 500 Naira to 1 Dollar, Do you think it will be easy for parents to pay fees abroad.

SUGGESTIONS
1. Students schooling or intending to school abroad should rather think of how government can help in providing a means for students to transfer their school fees and money for upkeep. Though, this should be regulated, but not to protest over the Ban of ATM usage Abroad. NANS Excos and other student activist abroad should get to work on how to get alternatives for students to get money abroad. Who knows , students might be allowed to use Naira ATM abroad but lets consider the effect.
2. Most traveling outside Nigeria , especially within African countries should stop the habit of taking naira out to buy what can be bought in Nigeria , eg Phones , Laptop e.t.c
3. This is also the best avenue to challenge the government to work on the educational sector of Nigeria so that Nigerians will stop wasting chunk of money on schooling outside. In Ghana alone, Nigerians spends about 160,000,000,000 on education. The question is ;
a. How many people come to Nigeria to study or spend such money?
b. How many countries appreciate the monies spent by Nigerians in their economy.
Thus, if government won’t allow free usage of Naira ATM for students, then, they should provide alternatives or better our education system by scrapping JAMB and POST JAMB.

RECOMMENDATIONS TO LEARNED COLLEAGUES
Please let's apply what we learnt in school. When we spend more of our currency to import without Export, the value of Naira will keep dropping. So let’s plead to government to rather work on a policy to support fees payment and up keep money for students schooling abroad, also for business men. Also why are we not thinking of business we can do in abroad , afterwards , we send the little money you earn to Nigerian banks.

CONCLUSION
This literally mean , we are giving out without receiving except from petrol which is our major source of income , NB , price of Petrol is also dropping. If you give out without receiving you must reduce in whatever you have. This is one of the reasons why naira is dropping value. Therefore, ban of Naira ATM use outside Nigeria is a good policy. I don’t care who the governor of Central Bank of Nigeria is but I salute him/her for this. At least , this Policy should be maintained till Naira can be equivalent to about ₦100 – $1 dollars. If buhari Claims to take ₦1-$1, Do we think he will just perform Miracles, these are some of the ways to achieve it. Lets think of what to do so that others will come and spend or invest in our economy, However, there should be a way out for those who genuinely need to use the ATM outside Nigeria (Businessmen, students and likes ) Surely Politicians and those who pay visit to other countries Should be totally BANNED from use of Naira ATM abroad, amount taken out of Nigeria should be regulated.

This write up is not in any way to support any political party but for the betterment of Nigeria. Change and betterment will not occur if we won’t pay the price, ABOVE ALL, THIS IS A TEMPORARY MEASURE FOR THE SAKE OF STABILIZING THINGS. It is mainly geared towards those who spend naira on luxurious stuffs abroad.

Thank you for reading, comments to enlighten me are welcomed.

Reference
Referece 1 https://www.thecable.ng/finally-naira-falls-to-dreaded-2501

Reference 2 http://www.cenbank.org/rates/ExchRateByCurrency.asp

Reference 3 http://www.vanguardngr.com/…/nigerian-students-spend-n100b…/

Reference 4 http://thecitizenng.com/…/banks-blame-atm-card-ban-abroad-…/

Refeerence 5 http://ynaija.com/why-we-cant-reverse-ban-on-atm-card-use-…/

Amberon:
There isn't and WILL NOT be a total ban on the naira ATM. only restrictions on the daily limit.

Atmmachine:
Bullshit.
I repeat again, Bullshit.

Banning the use of ATM cards abroad ain't the solution to Naira's problem.
You can't send Western union out from Nigeria to other countries, when Nigerians abroad get low on cash and decides to steal, Una go say them dey bring us bad name.
Another bullshit.
Who are you gonna deceive with that pile of steaming shiit you just wrote.
I have a degree in Marketing.
You're making Nigerians look uneducated.
Have you heard of Pegged Exchange Rate ??
It's a type of Exchange Rate regime where a currency's value is fixed against either the value of another single currency.
In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.
The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
Jamaica, United kingdom and the United States of America also used the method.

I wish i can see you face to face so i can seize your degree and send your ass back to primary school

ironheart:
well aticulated and valid point. you will still hear some jobless nairaland youth come here to bash this thread. instead of them to think of how to tap from the 6.08tri budget. funny enough this thread is still at the back when it should be a front page material. but if its about uneducated artist its on front page with a phd nairalander guy/girl screaming first to comment. i shake my head for our dullard youths

nextstep:
Nice analysis, OP, and I see sound reasoning in your argument, but we've seen this movie before, in 1983-1984 and we remember how it played out. I think you've also conflated the 250 (parallel) and 197 (official) exchange rates, which dents your argument.

Instead of directly stimulating our economy and enacting policies that would ensure that nobody wants to study abroad, govt is instead punishing those who choose to.

Parents who send their children to Ghana Turkey UK, etc are not stupid: our educational system is crap and the only way for their children to be competitive is for them to use their hard earned naira to train their children. The fact that these children return home and get all the good jobs is testament that our educational sector does not really train anyone.

Would you rather have ill-trained graduates - in our banks, at our phone companies, building our bridges, writing our software, working our hospitals - or people who have had the fortune to get better trained?

You say nothing in and so much out. Have you considered the longer term economic impact of a well trained graduate who comes back to Nigeria?

Instead of gradually improving the educational sector over 4-8 years with real long term thinking, we have a sudden ban that doesn't address the real issue. Of course, if government tries to raise tuition in order to improve standards, students riot, but that's another story. Here's a tip: don't double tuition on everybody overnight, just raise it 10-20% per year for new students only.

Now about traveling, again why don't we have a sustained long term policy that makes Nigeria a competitive travel destination?

Same thing goes for business:
- solve the power issue
- make sure entrepreneurs get low interest rates and long terms for manufacturing
- properly use our agencies to regulate producers of substandard goods (like what Nafdac does for food)
- media campaign to raise awareness for us to support Proudly-Made-in-Nigeria. I would happily put this on my products
- raise tariffs on imported finished goods
- invest in mining other minerals
- improve and diversify our seaports so that getting equipment is easier
- sincerely encourage small cottage industries (bring back FEAP)

I understand that "defending the naira" prevents a much worse scenario from playing out (e.g. we get to a point where we have no foreign exchange to buy essentials or service debt).

However, the short term draconian shutting off will send the economy into a downward spiral since people can't spend their money, businesses and banks will get more tight fisted, which means less hiring, which means less money, and so on. It's not rocket science, and it's not mere speculation: we've actually been through this scenario before and it took us 25 years to recover.

Government should not forget to attend to long term measures that fix our overdependence on imports. In fact, do only two things: solve power, low interest loans (strictly to buy equipment and build factories), and the rest will follow.

Abbycite:
@Op....I will excuse your line of thought because u said u are not an economist.....because your analysis is totally hogwash




Av u ever think what will happen if d US or d Japaenese govtd implement d same policy......because even d value of dollar n Yen is also going down...

bankylan:
It is obvious you are not educated. The OP said dollar was 250 in Dec 7 but it was 195 in Dec 28. The 250 wad parallel market rate and the official rate was 199. The official rate as st today is still 199 and the parallel market is about 265. Though it went to about 280, but it has come down to 265 as at today.
I work in a bank.
You spoke about the budget. It is also obvious u lack a deep knowledge about debt financing. Take time to read and speak to business leaders. Being a political slave will not help.

MadCow1:
The one thing I have learnt in Economics is that it is not a direct science. In a debate, I can bet you another Economic analyst can put up a different argument to kill this post dead.

Have you wondered about the Business Men and Women who rely on Forex to do business? I am not speaking about boutique business, I am talking of Manufacturing and the likes that involve purchase of Raw Materials from overseas to function?

Amberon:
If you read marketing like you claim then you should know better, that this indeed is a way forward for Nigeria. This restriction will also affect me, but it is for the greater good.

Do you know Nigerians are the biggest spenders in Dubai? and also UK along with the Arabs? I'm not an economist but the day I heard of this development, I knew the reason why and I called my sister who is an economist and got a brilliant explanation from her.

If you know how much Nigerians spend overseas and the ripple effect it has on our economy, you'd commend PMB. Naira is at a free fall and only policies like this, along with others can deliver us from this nightmare.

The op is correct. with billions of dollars going out and nothing other than peanuts coming in as crude oil revenue, I tell you the naira will be towing the part of the Zimbabwean dollar. Believe it or not, this is a step in the right direction.

Atmmachine:
Bullshit.
I repeat again, Bullshit.

Banning the use of ATM cards abroad ain't the solution to Naira's problem.
You can't send Western union out from Nigeria to other countries, when Nigerians abroad get low on cash and decides to steal, Una go say them dey bring us bad name.
Another bullshit.
Who are you gonna deceive with that pile of steaming shiit you just wrote.
I have a degree in Marketing.
You're making Nigerians look uneducated.
Have you heard of Pegged Exchange Rate ??
It's a type of Exchange Rate regime where a currency's value is fixed against either the value of another single currency.
In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.
The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
Jamaica, United kingdom and the United States of America also used the method.

I wish i can see you face to face so i can seize your degree and send your ass back to primary school