₦airaland Forum

chigo4u:
What laws makes it illegal? While haven’t cbn seized those monies instead of now regulating it since it’s illegal?

chigo4u:
It’s also just like someone getting BDC license from cbn and selling to another person. Is it stealing? I can list several similar instances of these

Wickedtruths:
You obviously don't understand what I've been saying.

You're arguing that it is immoral and I'm telling you that based on our laws, it is fraudulent and illegal. Or is fraud immoral but not illegal?

Wickedtruths:
Is it government money they used to float the BDC or which kind watery example be this? Different sectors, different regulations, same regulator. Is that too hard for you to comprehend?

I think I now perfectly understand your point of view. You see things from a basic trading perspective as in buying and selling. You don't factor in regulatory compliance . Don't carry that mentality into regulated businesses and sectors.

You don't just buy the BDC license, you acquire the underlying legal entity. It involves change of directors, secretary, CBN's approval, etc. I have a colleague who just acquired a microfinance license for a fintech after the back and forth with CBN. You think it's like buying spare part in Ochanja market or Ladipo? Okay na.

Go and sell BDC to someone who gets involved in terrorism financing. Your last seen on Nairaland go long like anything.

Wickedtruths:
Stop talking about what you don't know, it's been illegal since the scheme started in 2016.

The CBN's Regulation, specifically the Anchor Borrowers Guidelines as regards the Anchor Borrowers Scheme regulates it. See the attached pictures, those are the penalties for diversion both by disbursing institutions and loan beneficiaries.

Maybe your next argument would be that diversion of funds is immoral but not illegal.

Willie2015:
Hearsay...whine and complain ..... Haba !
Google Zimbabwe farmers in Ilorin and read their story...... its on the net....
I expect you to ask basic questions.... not all these boli sellers, pure water stuffs analysis...
Why is the CBN Governor forcing banks to lend to entrepreneurs, individual and startups ?
Why are banks running away from lending to the real sectors & and yet give loan to salary folks...
Simple ...those banks knows that that they might not get their capital and interest back from entrepreneurs individual and new start up....
Check the books...their huge non performing loans shows the same trend....
If businesses are doing well..... then bizs are likely to employ....
Since jobs are largely created by the private sector.....
Check Nigeria unemployment rate with NBS..... we have a steady increase since 2016 till date....
Thats a basic indication that bizs are not doing well......
Even those that are collecting loans from banks are investing in Treasury Bills.........
You are in the Agric line ...... a simple analysis is here for you.....
It cost [b]=N=40,000 to import a tonne of maize from India to Nigeria.....
And yet our Nigerian farmers will produce the same tonne of maize btwn =N=100,000.00 to[b] =N=125,000.00[/b]
Assuming you are owner of a manufacturing feedmill outfit that uses maize as a major input...
Pls tell me how you intend to compete with a competitor that import maize from India at =N=40,000 per ton[/b]....

koonbey:
Nations and economies don't (or shouldn't) run on emotions. All this name-calling is completely irrelevant.

It might be immoral, but it's certainly not illegal and it's not stealing.

If anyone is at fault, it is the government; for not properly vetting the people to whom they were releasing funds and for leaving the contractual language open enough to allow the diversion of the funds.

chigo4u:
The question here is despite this terms (which is not a law) why do people still divert these funds? That’s what I’ve been saying, weak system!
I can decide to get this loan, let’s say get 100m, invest in tbills till I’m caught, get blacklisted by cbn from further interventions and still repay and keep my profit. The prosecution here is vague.
Without the recent policies by CBN it will be business as usual.
CBN is now trying to stop anyone that collected this loans from investing in govt instruments which is what they should have done much earlier. Blame cbn for creating the loophole not those that benefitted from it.
Do you know how many billions banks make from loopholes?

Apitch:
Nothing is illegal about using loan to do TB, Before now(that's if it's still not happening), these banks approach you to give you loan, whether you need it or not and they will term it expansion of your biz, knowing that you are capable of paying back. I've seen plenty of it and it's not illegal, everybody is playing safe but due to over subscription, they want to put an end to it.
Once upon a time, your TB cert can be used as a collateral. Tell me it was illegal too

odimbannamdi:
This is one economic question that requires just common sense to answer. If your statement is anything to go by, i would go with Indian importation if i am a manufacturer keen on makinh profit.

But it beats me why made-in-Nigeria products and services are far more expensive than their imported counterparts.

I just tire

chigo4u:
What laws makes it illegal? While haven’t cbn seized those monies instead of now regulating it since it’s illegal?

Apitch:
Nothing is illegal about using loan to do TB, Before now(that's if it's still not happening), these banks approach you to give you loan, whether you need it or not and they will term it expansion of your biz, knowing that you are capable of paying back. I've seen plenty of it and it's not illegal, everybody is playing safe but due to over subscription, they want to put an end to it.
Once upon a time, your TB cert can be used as a collateral. Tell me it was illegal too

Wickedtruths:
Stop talking about what you don't know, it's been illegal since the scheme started in 2016.

The CBN's Regulation, specifically the Anchor Borrowers Guidelines as regards the Anchor Borrowers Scheme regulates it. See the attached pictures, those are the penalties for diversion both by disbursing institutions and loan beneficiaries.

Maybe your next argument would be that diversion of funds is immoral but not illegal.

Wickedtruths:
Is it government money they used to float the BDC or which kind watery example be this? Different sectors, different regulations, same regulator. Is that too hard for you to comprehend?

I think I now perfectly understand your point of view. You see things from a basic trading perspective as in buying and selling. You don't factor in regulatory compliance . Don't carry that mentality into regulated businesses and sectors.

You don't just buy the BDC license, you acquire the underlying legal entity. It involves change of directors, secretary, CBN's approval, etc. I have a colleague who just acquired a microfinance license for a fintech after the back and forth with CBN. You think it's like buying spare part in Ochanja market or Ladipo? Okay na.

Go and sell BDC to someone who gets involved in terrorism financing. Your last seen on Nairaland go long like anything.

chigo4u:
Please keep all these your fake emotions to yourselves, do you think cbn has not been aware this is happening? Blame the cbn for creating this loophole not people that benefitited from it. Comparing this to yahoo is stupid too. Yes it is immoral but not illegal and yes these kind of things also happen in developed countries.
We have seen billionaires in developed countries using every trick in the book to avoid paying taxes, including Donald Trump, many create offshore accounts to avoid taxes, what do you call that? Stealing? Yahoo? Also many billionaires in Nigeria owe billions in bad debt to banks and yet some even get more loans while it’s difficult for the average Nigerian to get new ones!
If the cbn rolled out the policies it is doing now much earlier no one would have benefited from this loophole, the problem with most Nigerians is being too sentimental and not knowing where to apportion blames.
The self righteous people who mostly did MMM are now calling names to others who benefitted from a weak irregulated system

igbizen:
I love every bit of this write-up. A friends company today gives loans to staff every four years to purchase cars, but staff rather invest it and manage their old cars. So is that illegal?

Donbrig:
Tax evasion is a crime, while tax avoidance in not a crime. Lol, you guys are becoming too informed and educated in this forum, too much of everything is bad Ohhh.

igbizen:
Loopholes are tricky. Imagine a US investor, because it is in the law that when you travel for investment purposes and have a proof of such transactions then you can include such expenses under company expenses. So what he does is whenever he goes for his yearly vacation, two to three days to come back he does a business transaction and ties all the vacation expenses to business expenses. So my question, according to this trending discussion, is it immoral or illegal? �

Wickedtruths:
Private company, no problem. It's part of your company expenses. That's why I was saying that private sector expenses would be deemed fraudulent in the public sector.

We are talking about government funds here. Understand the difference. That's why I told the other guy that he should not carry petty trading mentality into government business. The regulations there

Ordinary using your private email for government business can cause you serious problems.

igbizen:
I love every bit of this write-up. A friends company today gives loans to staff every four years to purchase cars, but staff rather invest it and manage their old cars. So is that illegal?

igbizen:
Do you know why it’s done that way, because the guy wants to pay minimum tax. Did he go there because of business transaction, no! He tries to evade tax by using tax avoidance. Guys stop all these illegal sh*ts. The loophole was provided and people used it. Otherwise if it’s illegal they would have been prosecuted by now, instead they are trying to close the loophole- be wise!

Wickedtruths:
If it isn't stealing, it is what? Moving abi?

So, if I get a grant from the government to build hospitals for women of schools for children and I refuse to build it but divert the sums to buying Tbills, it isn't illegal but only immoral? Well done.

Do you have an idea of the kind of precedent terms and conditions upon which the funds were released to the beneficiary?
Or you think you can try that nonsense in developed societies?

That is misappropriation of funds and anyone who engages in this is a thief.

You may find it unpleasant to your ears but that's your own problem. Someone has to tell you the bitter truth.

Fhemmmy:
There is a huge difference between grant and loan, if you given a loan, the giver is more interested in repayment and not the usage .... while great to use for purposes of securing the loan, a good business person knows when and what to invest in.

NL1960:
That is a big loophole created by your friend's company. Was it intentionally done?. Companies buy cars and give to staff and not give money to staff to go and buy cars. These days, if you are a salary earner and work in a Company, you approach a financial institution for Asset Acquisition financing.

igbizen:
This same thing played out some years back when people were round tripping on dollar and naira.

Wickedtruths:
Did you see the CBN regulations I posted in the previous page?
Did you see where they wrote prosecution there?
Can they prosecute you for something that is not illegal?

Don't carry private sector ideas into government business. They are different scenarios entirely. Hillary Clinton was nearly boiled alive cos she used her private emails for government business.

Wickedtruths:
Did you see the CBN regulations I posted in the previous page?
Did you see where they wrote prosecution there?
Can they prosecute you for something that is not illegal?

Don't carry private sector ideas into government business. They are different scenarios entirely. Hillary Clinton was nearly boiled alive cos she used her private emails for government business.