₦airaland Forum

What I cannot understand is this:

Why would any member of the board of directors, the Chairman, MD or anybody in such positions be allowed to borrow such staggering amounts of money from banks they are supposed to be administering? Does this not constitute conflict of interest? N82billion owed by a director? N109 billion incurred by the Chairman? Gracious me!

TheDevilIsALai:
NDIC only pays a fraction of your deposits.

Ask Okocha about his One million dollars that vanished when Societe General went under

It was ten million dollars (about N1.5bn at the time). Even a Presidential order from OBJ could not produce the money.

matrix199:
Illiteracy is bad.



How does dissolving the management team of a bank affect the capital base of the bank? Even in a situation where the bank goes liquidated, the NDIC is on ground to refund customers' money.


Fuel price wants to increase.. Panic buying.
Fuel price wants to decrease.. Panic buying.
Change the management of a bank... Panic withdrawal
Bank takeover.... Panic withdrawal


Must everything be panic?

It is the bank run that eventually distresses a bank; everyone trying to withdraw at the same time. Some form of withdrawal restriction and capital injection from the CBN should keep the bank standing.

He deserves justice or he should face justice?

Since when did murder become a bailable offence?

wemmieslim:
Sex education at its peak,
But I think she revealed too much or maybe not!

At 11 years, how much longer would it take for the girl to start having sex? Better they are told about these things early enough from the no.1 authentic source (parents) than for them to get a warped view about it from outside (from their peers).

Some basic questions:

a) How much does it cost for the bi-valve carburetor and installation?
b) Are you in Abuja?
c) How many hours does a full cylinder run? Be truthful about this because I do not personally believe that a 12.5kg cylinder will run for up to 60 hours. Even Harvos had stated in an interview that it is something in the range of 37 - 39 hours.

So let us have the answers.

PayPal can now realize how stupid they were to have locked out Nigeria for close to 13 years.

Sweetlemon:
You people are NOT ok at all. Ok let's use your logic of increase in bread price. According to the Picture Buhari left it at 70k right?
So how come it increased to N220? Who has been increasing it all this while?

Bottom line, bread is one particular commodity that has NEVER been stagnant for as long as I can remember in Nigeria.
I remember quite well that bread was N150 just about 5 years ago. Wait a minute, who was in power then when it increased to N220?

I remember the events very well. He sent soldiers into the markets to force traders to cut prices at gun point. That was his idea of how to make bread cheaper then. Today he cannot command soldiers to go to the BDCs to sell dollar at N1.

So you see, he was clueless about the economy then, and he will ever be clueless about the economy. The only thing he knows to do is to fight corruption.

OP, it is your life, but as someone who has lived in at least 8 states in Nigeria for various purposes (growing up, schooling, work and eventually business which I now do), I will give you some advice.

1) You do not make a relocation move simply because you "like" a place. Relocation is serious business and people have had their destinies marred or delayed because they made careless relocation moves without considering a lot of things.
2) You must clearly define why you are moving.
3) When you enter the new city, what will you be doing there? When I moved to Abuja with just N50,000 in my pocket, I got a rude awakening with the cost of rent. If not by the grace of God that would have been a big setback for me. I came to Abuja not prepared to work for anybody. Today the business I do there is thriving but there were heavy challenges. I naturally have a mind of steel so I was able to pull through.
4) I lived in Lagos at a point in my life for one year and knew immediately the place was not for me. Too noisy, polluted, flooding, etc. LASTMA has once taken N20,000 from me for traffic violation. In Abuja, not one time have I had any such troubles. Did I mention the traffic? Never pray to get stuck in Lagos traffic. If you don't have the stomach for it, forget it.
5) Consider where you will live. Mainland vs Island? That is the big question.
6) Will you be working or doing business?
7) Would you like to raise a family in Lagos? Lagos is a crime-ridden state. Believe it or not. Compared to PH where I lived for a long long time, Lagos is tough and not for the faint-hearted. If you think the matching ground and foundation and drink + goat+ youth fees you pay in PH for land acquisition are bad, try and have an experience with the "omo'niles" in Lagos. A trial will convince you.

All told, I cannot advice you on what to do with your life. But for me, I would prefer PH to Lagos anyday. I still visit PH and it is a town close to my heart.

I wonder why there is so much fuss. How is the loan to be paid back if the businesses are not operational? The only thing there is that not a dime of revenue will enter the coffers of Ben Bruce and his brothers. All monies will be paid to AMCON who will administer the businesses until all monies are recovered and when the last dime is paid back, AMCON will simply hand the businesses back to the Bruce brothers.

It's all so simple. So why the fuss?

mrcodebreaker:
Hello Guys, Please for those familiar with Payoneer. Can it be used to buy things online. If it can please mention the sites where I can use them. Also, can I use it to pay tuition in the uk. Can you use it at cash points in the uk etc. For those with some info please share.

Also I need good rates on dollars or pounds via paypal to be able to pay tuition and accomodation in the uk. Please state your rates. Thanks

I can authoritatively tell you that it can be used to pay for tuition in the UK and also on sites that use other payment processors that are not PayPal. However, it will not be accepted at sites that use PayPal for payment processing because the cards are not linked to a bank account.

Been there, done that.

He is to give you 6 months notice, then 7 days notice. Get a lawyer to get an injunction to counter that order. The judge who gave such an order can get into trouble for it. Petition the NJC.

opalu:
[b]MEN, HEAR THIS:
If you can convince your wife to drop her father's name and marry you, then you have ALL it takes to convince that same woman to make love with you when you need it. If you approach the door of your bedroom and command it to open instead of using the right key to open it, you will be dissappointed, because it would not open. If you stand there praying all manner of prayers, it will still not open. If you use force it won't open if it is security door (some women are like that these days). With force, many doors will open but disfigured.
From this analogy, forcing your wife to have sex leaves you with a disfigured marriage. Begging your wife for sex is equally an abnormality. You don't beg for what belongs to you neither do you break what belongs to you that you would still need tomorrow (or this evening )
The way a man 'rises' and 'falls' in sex is sudden just like someone using Elevator (Lift). A woman on the other side uses the staircase to rise and come down. So except 2 agree together they cannot tangle. So you as a man need to leave your elevator-mindset and follow her climbing the staircase step by step. And it starts from when you wake in the morning. As a matter of fact, If your wife does not release in sex, then YOUR wife is in bondage till now. Release her!!
To many women, sex is one hell just because of the way you have continually done it. We are in the age of smartness and the earlier you help your wife to become a smart-wife sexually the better. It is an evil under the sun to leave your own wife as an analogue wife (sex-wise) and then have a spaggetti girl somewhere who gives you sex in Kit-kat, Jelly bean and all latest styles. [/b]


Let me no forget to say that i only talked to MATURE Men... those who are married. The only way to prove you are a mature man is by marrying. Too many ladies are single and time is not on their sides. If your own reason is 'I am not yet ready for marriage' Then STOP having sex! Because it is strictly for those guys who are married!

Little experience from my 8 years of peaceful marriage

The only sensible post here. People don't know that there is a way you will handle your wife and she will be the one bringing the sex right to your doorstep. Na u go dey beg say abeg, e don do.

Can she ask Rochas why he is owing his workers since January?

Those Lagos bus drivers are confirmed lunatics and they deserve whatever beating they get. No respect for traffic rules or any other road user.

dammytosh:
While Ben must have made Thousand lose their job while the loan remained with him without being serviced.
About if it is only opposition that are oweing.
ASK AMCON.
Let me educate you.
AMCON buys bad loans from bank and it is their mandate to recover such loan. (Bad load means any loan you default on contrary to the agreement)
So when they beg you to pay for a long time, they go to court to collect injunction to take over your asset.
This can not be politicized.

Ben Bruce thanked Union Bank for providing the facility for the construction of the Silverbird Galleria in Abuja when it was commissioned. The sum borrowed was huge.

Dammytosh is very correct. There is no politics about this and AMCON was not setup by Buhari. Without AMCON, who knows where Nigeria's financial system would be now?

They will leave of their own accord within 24 hours. We had this once in a mango tree in my backyard sometime in the 80s. They all left by morning. Do not attempt any monkey games like lighting a fire or fumigation. They will simply go gaga crazy.

shinaboy:
[i][/i]

Firstly, there is absolutely nothing wrong with basing my opinion on information gathered from subject matter experts as in the article I shared, as long I understand the argument and I find it logical. Big businesses, governments, and decision makers of all kinds do this all the time. My opinion is no less valid because it is based on LOGICAL expert opinion. Emphasis on the word "Logical".

While I am not an expert, I do have a enough understanding of economics to know that a centrally controlled economy does more harm than good in the long run as Venezuela perfectly exemplifies.

Of course devaluation leads to inflation but I think saying that the hyper inflation seen in Venezuela is purely a result of the devaluation is mischievous and misleading. The factors responsible for the country's descent into the disaster it finds itself are many, and a key one was that it kept fixing prices of goods and forex rates until it became too hard for manufacturers to stay in business. And yielding to pressure, the leadership devalued the currency in last ditch efforts to save an economy that was already tanking.

Devaluation is not a silver bullet that would clear the mess caused by poor economic policies such as artificial forex rates in one fell swoop. For it to be of any use it has to be implemented alongside other policies which allow markets to operate more freely.

Artificially low prices may please us for a while but there will be nothing but anguish and regrets in the long term when its consequences become manifest. On the other hand devaluation may cause discomfort now but this can only lead to growth and development as long as other liberal market policies are in place.

If anything, Venezuela perfectly demonstrates the folly of forex controls, price fixing, and bad governance in general. And It is in no way an example of the dangers of devaluation as you suggested.

You obviously did not read my post. If you did, you will see that there was NOWHERE I suggested that Venezuela's problems were a result of devaluation. Rather, I said that the problems with Venezuela are similar to what is playing out here as a RESULT of poor economic policy of depending solely on the export of a product whose pricing regime is not under our control.

Devaluation is not a cause: it is an effect. That is what I was clearly saying.

So you completely misrepresented and misinterpreted my post.

shinaboy:
This is not true. The case with Venezuela happened because the government was controlling prices of commodities and fixing forex rates just like Buhari was doing before he saw the light. Infact, the shortage of products already started before oil prices started to drop.

So they are suffering from forex controls rather than devaluation

You can read this article for more details about the crisis
http://www.theatlantic.com/international/archive/2016/05/venezuela-is-falling-apart/481755/

Are you basing your opinion on an article or are you basing it on your own analysis as someone who understands economic fundamentals?

I would prefer to hear your viewpoint and not what an online article says. We all went to school and should be able to do our own analysis, not regurgitate a script written by a journalist somewhere.

adconline:
During Chavez, their workers were the highest paid in South America . They made a lot of money and spent it in their country and on their citizens unlike in Naija where we made a lot of money and Politrickians and their cronies stole and stashed in offshore accounts.
They invested in public infrastructure. It currently generates 5x more power than we do.
When oil prices come back, it's positioned to reap bountifully because its oil company, PDVSA ( similar to NNPC) is a vertically-integrated company. It explores, drills, refines and markets petroleum products. It owns one of the largest refineries in the US-Citigo. It owns refineries in Germany, Sweden, Jamaica, Bahamas and US Virgin Islands. Our NNPC is unable to reconcile its account with govt and JV partners.

So now that the US is adding 9m barrels per day and the Saudis have threatened to step up to 20m barrels per day, when will prices of oil "come back", and to what levels?

You mean you are still one of the mono economy preachers?

I have refused to be drawn into any arguments about Venezuela with the guy who is just talking and knows nothing about the reality of the situation there at the moment. Rather than admit he was wrong in his analysis, he is now saying Nigerians have never enjoyed social programs.

He probably did not participate in the Awo era free education. Maybe he also never got a scholarship with offer of automatic employment. Perhaps he also does not know students were once fed for free until Bihari's military junta stopped it and also stopped construction of new hostels. As a primary school student, we had sandwiches, milk, biscuits etc as part of a proper school feeding program, not the garbage I saw on TV the other day. This was in the late 70s.

Nuff said. Let him keep arguing without basis.

I have refused to be drawn into any arguments about Venezuela with the guy who is just talking and knows nothing about the reality of the situation there at the moment. Rather than admit he was wrong in his analysis, he is now saying Nigerians have never enjoyed social programs.

He probably did not participate in the Awo era free education. Maybe he also never got a scholarship with offer of automatic employment. Perhaps he also does not know students were once fed for free until Buhari's military junta stopped it and also stopped construction of new hostels. As a primary school student, we had sandwiches, milk, biscuits etc as part of a proper school feeding program, not the garbage I saw on TV the other day. This was in the late 70s.

Nuff said. Let him keep arguing without basis.

adconline:
Please stop using Venezuela's situation to justify what's going on in Naija.
Venezuela's budget in 2016 is $247bn while Naija is $30bn
Venezuela GDP is $438bn with a population of 30m..
In the last 10 years, it has budgeted more $100bn unlike in Naija. It has spent more on social programs and didn't save for rough days like these.
It's spending more on health, education and social programs this year alone more tha what Naija has spent in the last 10 yrs. Their literacy level is 95.2% while that of Naija is 59. Life expectancy is 74 yrs while Naija 52.
Venezuela generates 5 times more electricity than Naija.


While in Naija, we have Politrickians budgeting 70% of our meager budget for their welfare..

So what is your point? Their coffers are now empty. Has all the spending stopped the food lines?

Davinex:
And we complain of unemployment. SMH
when you don't see value in what u have, people with vision will take it from you.
It's time we clear the cobwebs.

In her country, it costs less than 1% to borrow money from the bank. In your country, it costs 28% to do same from commercial bank, and 10% to 15% from microfinance bank.

In her country, she can get a credit card, pay off the fees month by month, and defer paying the principal until her tomato farm yields in 3 months. In your country, your banks charge you all manner of fees to keep money with them.

In her country, the US govt sent $500 to every American during the global financial crisis to stimulate spending and boost their economy. In your country, Buhari cannot even honour his party's promise to pay $17.86 (N5,000) to unemployed and vulnerable Nigerians.

In her country, the government subsides agriculture heavily and gives their farmers access to guaranteed markets. In your country, your agric minister wants to import grass and fodder from Brazil to feed cows and also to do away with fertilizer subsidy.

You want me to go on and on? A Nigerian and an American are not on the same level when it comes to access to things that make life better.

kokobongo:
Nice one. But note. from the results below of the CBN SPECIAL SECONDARY MARKET INTERVENTION SALES

The USDNGN official rate effectively becomes N280/$.

however, these monies where used to clear only the back log of pending transactions.

also, note that. The CBN regulates strictly the spreads/margins in which these FXPD can make so i dont think any bank will sell above NGN300/USD1.

it will still take about 1 week or more before we can ascertain the real value and at what rate the banks will be selling. i for sure know the difference cannot be more than 10 naira from the interbank market rate


CBN INTERBANK INTERVENTION RESULT

1 AMOUNT SOLD = US$532,867,169.11

2 HIGHEST RATE= NGN382.00/US$

3 LOWEST RATE= NGN197.00/US$

4 MARGINAL RATE= NGN280.00/US$

5 NO. OF BANKS= 21

To add to this:

The news commentary had it that at yesterday's trading, banks were just BUYING dollars and were not selling. So there was heavy dollar demand and that is why the interbank rate, which opened at N253 or so, started sliding towards N288 to $1. Bidding was going on and you know how bidding or auction processes go: the price keeps going up so that the highest bidder wins.

Had the CBN not intervened to offer dollars for sale at a rate of N280 to $1, believe you me the US Dollar would have been sold to the entity that was willing to pay N382 to $1 and we would have woken up to see rates at close to N400 to $1.

I tell you, we are yet to see the last of this and I am seriously wondering what the appropriate value of the Naira would be. I don't know if CBN will continue such interventions on a daily basis. Other central banks hardly intervene unless they have to. Bank of Japan has performed 3 interventions in the last 8 years or so.

Something will have to give. It is either the country's economic fundamentals are changed so we can become a net exporter (which means the government has to QUICKLY AND MASSIVELY invest in critical infrastructure like power to boost small scale production and manufacturing for export), or we just watch and allow the Naira to fall to the precipice.

We should look to Venezuela for serious soul-searching. That country produces crude oil like we do, wasted their oil money like we have done and had to devalue their currency. Now inflation is so high, that the people are starving and queuing for food. The situation in Venezuela is now so bad that people are breaking into stores, looting food and provisions and anything they can find to survive. The Venezuelan Army is now guarding retail establishments and escorting food trucks to distribution centres and markets. Critical situation in that country which reminds me of the ESSENCO lines we had in Nigeria in 1984/1985. Guess who was president then?

May we never get to that point ever again.

DMeanMan:
Your hatred for this administration is making you sound unreasonable

Look at all the economic indices and tell me ONE THING that is working.

DMeanMan:
Your hatred for this administration is making you sound unreasonable

Look at all the economic indices and tell me ONE THING that us working.

The mum's genes are super uber strong. From the facial features to the skin colour. Waoh!

Ogetogeo:
Just spoke with my account officer now. She said, I would need to apply to the bank stating the quantity of dollar I want to buy and at what rate am willing to buy, the bank would then call me if my proposed rate meets their rate. That they won't tell me what their rate is, I just quote what am willing to buy.

When i probed futtyershe said today rate at their bank is 319 for $.

What kind of Yeye policy is this? So I would need to keep writing letter like am writing a contract proposal for something I need to pay my cash to buy?

Questions begging for answers are:
1. Who has been able to buy dollar cash at the quoted interbank rates (253 - 260)?
2. Which bank sells at these rates?
3. What are the steps to access it?

Please, we need facts not hear say nor online quotes

Note the bolded. Unless you are a bank, you cannot buy at that rate. That is the rate that banks will buy from the primary dealers (who are banks anyway). In other words, the big banks in Nigeria who will be the nominated primary dealers will sell to other banks at the interbank rate. That is what it is called INTERBANK i.e. between one bank to another.

When your bank now buys at the interbank rate, they will now sell to the end-users at a profit. So if your bank quoted you at N319, they will make a profit of 319 - 260 = N59 to the dollar.

Usually, if you are buying huge amounts of dollars, then you will get it cheaper as per bulk purchase. So if you are buying $100,000, then your bank may offer you at 310 or 305 because the volume will compensate for the discount.

If you are buyng smaller quantities such as $1000, the bank will give you an expensive quote. Visit any forex trading ECN platform to understand it. Even in globalized forex trading, a true ECN platform will show price quotes from several liquidity providers (the equivalent of the primary market dealers) and the prices are never the same.

Those who think the Naira will appreciate under the present circumstances are dreamers. Naira will only appreciate when the country becomes a net exporter as opposed to a net importer.

If we had schools and hospitals which can attract foreigners to pay in USD, it would have helped. If we can export all manner of products as opposed to only crude and small amounts of charcoal, cashew, etc, then the Naira will gain.

Until then, you will not be able to get Naira at below 300. That I can tell you for real.

Doyin2:
If you are one of those hoarding dollars speculatively,I would STRONGLY advice you to sell it off before Monday,20.6,2016 ,at the black market.


The new Forex regime is surely going to improve the dollar supply,with an expectant crash in the black market rate.

The new market driven forex rate to the dollar, is expected to hover in between the current official rate and the black market rate,some where between 200 and 300.

Heed to my advice and thank me later!

Have you ever traded forex before? If not, I would advise you to put your economics to use in a practical fashion.

People do not even understand the meaning of "interbank" market. The interbank price is not the end user price. People should also note that the Naira is now fully subject to the full weight of market forces. What this means is that people will hold or dump the Naira based on news releases, economic news. politics, policy direction, etc.

Even our dear President going for another checkup will affect the Naira's value.