₦airaland Forum

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.

Fhemmmy:
BDC is to facilitate trading, business and economy, is selling to terrorist any of the aforementioned? I think we are comparing apple to banana, not even orange

Fhemmmy:
Before we can condemn all these in entirety, we will need to read the fine prints, but them, how much fine prints do we have in Nigeria, because what "Unauthorized" mean to one might not be what it meant to other, but it will be defined by those that made the law . . . .We can't and shouldn't knock people based on half baked facts . . . .Do the fine prints list what are unauthorized?
If i apply for an 100M Naira agricultural loan and i am given, invested 50M into agriculture while the rest goes into Tbills, have i done something illegal and unauthorized?

zamirikpo:
FRAUD......its simple fraud.
Even the banks are involved because their are certain requirements and follow ups that should be done. But they compromise.

Agric loan is Agric loan. By the letters of the law.

All this people talking about whether it's a loophole, illegal or immoral are the same people that voted bubu.

Wickedtruths:
So, why are BDCs compelled to comply with CFT regulations?

Have you ever seen a BDC licence sef?

Wickedtruths:
So, what you are asking is if diverting part of the funds is illegal?

Why don't you read the regulations yourself since you don't agree with what I posted.

igbizen:
If you don’t know, in this country there are many loopholes that the high and mighty are enjoying. When the public discovers it, it becomes illegal or immoral.

I will give you an example: for many years people have been enjoying voluntary contributions to PFA; You are encouraged to make a voluntary contribution to your Pension and it will reduce the tax you pay to the govt. The loophole there was that you can withdraw from it. So what many were doing then was if I earn 200k b4 tax, I may end up paying 50k to tax. But if I make a voluntary contribution to my pension of like 180k, I may end up paying 1k as tax.

So what I personally Experienced as an employee, was when I joined the multitude who discovered this late, was that instead of earning 150k. I will contribute 190k and pay 200naira tax get paid 9.8k into my salary account. And in just a week I will go back to my PFA and withdraw the entire 190k.

Nobody was prosecuted for this. Because everybody started doing it, the govt had to revise the policy just like they are doing now with this Tbill stuff.

So all these illegal or immoral stuff is rubbish.

igbizen:
If you don’t know, in this country there are many loopholes that the high and mighty are enjoying. When the public discovers it, it becomes illegal or immoral.

I will give you an example: for many years people have been enjoying voluntary contributions to PFA; You are encouraged to make a voluntary contribution to your Pension and it will reduce the tax you pay to the govt. The loophole there was that you can withdraw from it. So what many were doing then was if I earn 200k b4 tax, I may end up paying 50k to tax. But if I make a voluntary contribution to my pension of like 180k, I may end up paying 1k as tax.

So what I personally Experienced as an employee, was when I joined the multitude who discovered this late, was that instead of earning 150k. I will contribute 190k and pay 200naira tax get paid 9.8k into my salary account. And in just a week I will go back to my PFA and withdraw the entire 190k.

Nobody was prosecuted for this. Because everybody started doing it, the govt had to revise the policy just like they are doing now with this Tbill stuff.

So all these illegal or immoral stuff is rubbish.

zamirikpo:
FRAUD......its simple fraud.
Even the banks are involved because their are certain requirements and follow ups that should be done. But they compromise.

Agric loan is Agric loan. By the letters of the law.

All this people talking about whether it's a loophole, illegal or immoral are the same people that voted bubu.

igbizen:
And mind you while I was enjoying it for the first year, some of my colleagues were like it is illegal, you will be arrested. It was too late when they discovered that it was actually legal. They only did for two months b4 the policy was revised. Meanwhile some of us don use an buy land and other things... be there shouting it is illegal

Wickedtruths:
Let me ask you, is the Anchor borrowers program a grant or a loan?
Do the regulations which govern the program penalise diversion or not?
The contract you sign before accessing the funds, does it state the purpose and conditions of grant or not?

Wickedtruths:
That's how one man used grants given to him for research to be carrying prostitutes.

Some people think they are smart, until they get into trouble and use all they've made to fund litigation.

This idea of not allowing debtors buy Tbills, they would soon extend it to several areas. That's when you would see that bankruptcy laws are very much active in Nigeria.

When your loan term has expired and the loan remains unpaid or unserviced, when can't buy fuel with your ATM card, people would start understanding that actions have consequences.

LSETF by Lagos State Government gave billions of Naira in loans to entrepreneurs in Lagos. As at today, they have more than 3,100 defaulters. Lots of the people got loans of around 5M each.

chigo4u:
If it’s a fraud arrest them and take the to court, it will not be a fraud because you decide it is. Most of you calling it fraud would still engage in it if you had the opportunity. That’s the typical Nigerian self righteous hypocrite for you

Wickedtruths:
Why did you stop? You should have continued so that you can test the regulations na.

As at when you engaged in that act, there was no regulation against that act.
As at then /when the Anchor Borrowers Scheme was established in 2016, there have been regulations against diversion.

The same way the regulatory body put in rules against that act is the same way the regulatory body of the Anchor Borrowers Scheme put in rules to stop people like you from diverting funds.

chigo4u:
You always end up confusing yourself because to be frank you don’t have any point, you have left the main issue now to talk about people who couldn’t repay their loans

Wickedtruths:
Why did you stop? You should have continued so that you can test the regulations na.

As at when you engaged in that act, there was no regulation against that act.
As at then /when the Anchor Borrowers Scheme was established in 2016, there have been regulations against diversion.

The same way the regulatory body put in rules against that act is the same way the regulatory body of the Anchor Borrowers Scheme put in rules to stop people like you from diverting funds.

chigo4u:
You always end up confusing yourself because to be frank you don’t have any point, you have left the main issue now to talk about people who couldn’t repay their loans

igbizen:
Are you reading people’s comment at all, or you are just blinded with your own side of the discus. This thing was quietly going on for years until it was invaded nation wide- that was when it became immoral or illegal according to you. My point is if few people had continued doing it and govt was getting a sizable tax, they won’t revise any shit. Same with this topic we are discussing. They should stop blocking people from investing in Tbill and arrest them instead, that’s when it becomes illegal. Pls try and understand other people’s view.

Fhemmmy:
Here is the objective of Anchor, lets figure it out together:
Increase banks’ financing to the agricultural sector
 Reduce agricultural commodity importation and
conserve external reserves
 Increase capacity utilization of agricultural firms
 Create new generation of farmers/entrepreneurs and
employment
 Deepen the cashless policy and financial inclusion
 Reduce the level of poverty among smallholder farmers
 Assist rural smallholder farmers to grow from subsistence
to commercial production levels

igbizen:
And mind you while I was enjoying it for the first year, some of my colleagues were like it is illegal, you will be arrested. It was too late when they discovered that it was actually legal. They only did for two months b4 the policy was revised. Meanwhile some of us don use an buy land and other things... be there shouting it is illegal

Wickedtruths:
Carrying drugs is illegal. Does it stop people from carrying drugs?

The fact that people pass one-way and don't get arrested doesn't mean one-way driving is illegal.

You lack the capacity to state what is legal or illegal, that's the function of the regulators. They have stated what is illegal in their regulations.

If you are ignorant of that fact or you want to be a scapegoat to test the spirit and letters of the law, that is entirely a different ball game.

Wickedtruths:
You obviously still don't understand what I'm saying.

Even if it means using drawing stones and sticks to explain it to you, I'm willing to.

chigo4u:
Millions of people have been convicted for drug offenses in Nigeria, the law against carrying drugs is very explicit. Stop comparing apple and oranges.
These are entirely two different things. Stop arguing blindly

chigo4u:
Someone using loan to buy tbills and someone unable to repay his loans, is it same thing? Oga you no get talk biko

Wickedtruths:
But the law against diversion of agric loans isn't explicit until they write it in your native language, abi?

You said if it was a crime, they'll be arrested. I pointed out examples of narcotics and traffic offences. Offenders aren't deterred.

Wickedtruths:
But the law against diversion of agric loans isn't explicit until they write it in your native language, abi?

You said if it was a crime, they'll be arrested. I pointed out examples of narcotics and traffic offences. Offenders aren't deterred.

Wickedtruths:
Which loan?
Regular loans by financial institutions or this special Anchor Borrowers loan that is the subject of discussion?

Or you think they are the same thing?

That's why I told you to stop analysing issues like a petty trader.

chigo4u:
Someone told you earlier that cbn does not have power to make criminal laws did you miss that?

chigo4u:

You were talking about people using grants to carry prostitutes and also people not being able to repay their loans in that post, maybe you should read again.
You also mentioned cbn taking the idea of blocking the loophole to other areas. Do you even understand the points you make here?