SangoCrusader:


"Close all domicillary accounts..." it is obvious that you are broke and most likely uneducated. Person wey get $£€ for account no fit yan like vulcanizer...

Antiparticle:
Chei, why you finish me like this na? And why all the abusive words? Why is your commentary so angry

Anyways, while I agree with your statement that Emefiele likely used the word "arrested" purely for emotive reasons, it is still very unprofessional and cringeworthy of someone of this role. Someone who is responsible for the monetary policy of a large country as Nigeria should always try to avoid blatantly false statements because the markets are very sensitive to his utterances. Also, some people will mistakenly believe falsity that comes out of his mouth, regardless of his emotive intentions. False statements by Emefiele can have catastrophic consequences to investor confidence in our economy, which could further erode the Naira; this is fact.

Have a good night.

jjman2322:


Same problem bro.. So many payments outstanding for things ordered, and Im stuck on how to send them.. Can get the dollars as cash easily, but no point if it cant be sent.. Its a big problem and Ive been brain storming with all our account officers.. no luck yet

battleaxe:
Based on the explainations made here, if not handled carefully, this might actually create another "black market" with possibly higher rates.

One where people in the diaspora with assess to foreign currencies are able to offer to transfer dollars on behalf of individuals, companies etc. for naira credit into their bank accounts back home in Nigeria.

As can be expected, rates would not be going for the official rates as the demand and supply curve would lead to greater demand than available supply, especially for businessmen who need parts or materials urgently, or even people with urgent medical needs outside the country. The end result would be rates possibly even higher than that being contended by the CBN.

Unfortuantely, as mentioned by jjman earlier, I believe this would lead to increased cost of doing business and eventual increased cost of commodities.

Is this a correct assumption?

Chinom:



Most of your comments are from a very selfish and egocentric view point. You need to look at the bigger picture. Are you aware of how many millions if not billions of dollars that was wiped out of Dangote's fortune as a result of the recent crash in Naira. Such business men really understand the importance of a strong Naira. If you are truly a business man, pray for this policy to continue, endure for now and enjoy later.

Do you know that a Nigerian could buy a house in London for N20,000 in the early 70s ?.

owagbeba:

You mean without resident permit, I can crossover to Cotonou and do transfer -both TT and western union ?

Do customs at the border search people crossing over to Cotonou?

roqchiq:
@onatisi
@jjman

Am soo sorry I know am taking you guys back....but can someone please tell me the exact cbn policy. I mean the wordings.
All I can find is its meaning and implications, which I understand is messed up especially for Nigerians based here, who do business abroad, and for us who may be forced to buy items at exorbitant prices when inflation hits.

onatisi:
very simple. Banks are no longer allowing you to deposit dollars or foreign exchange in your Dom account anymore. And we all Dom acc are mainly used by business ppl.
2)you can spend the money you have in your Dom account but can't fund it.
3) there is a 300dollars daily spending limit on cards and 50000$ annual spending limit.
So how do importers and manufacturers pay for goods they need for their goods manufacturing and services

jjman2322:
I see there arent a lot of business men here or company owners.. Let me explain how things work before you keep applauding the CBN:

#1. In the USA, you dont need to deposit in other currencies because you can WIRE OUT YOUR USD to any country and they will convert it to their local currency.

What this means is that if im in USA, I have $50,000 USD in my account, i Can send that money to Japan, China, europe, etc.. This is not Possible with our NGN.. You can't wire Naira outside Nigeria without converting it first.. So the CBN governor is a donkey for comparing both countries.

Our currency is useless outside Nigeria. Some of you that have traveled out know you can't convert naira in UK, USA, China, however my dollars are good all over the world.

#2. This policy will lead to more unemployment. Lots of companies buy spare parts, machines from China, India.. Let me give you an example.

Say i need a new part for my machine, I get quoted $5,000 USD by a company in China.. The quickest most reliable way to pay them is to buy black market and deposit the cash in my DOM ACCT, then wire it off, and in 2 days they have shipped my part.

With the new policy changes, there is no easy way to pay for these parts.. LC's and Bill for collections are taking 3-4 months since the CBN does not have enough dollars for importers and manufacturers..

Let me explain in simpler terms:

If you wish to import raw material for production (which 100% of nigerian manufacturers do,(from plastic, to pharma, etc), then you have two ways of paying for the raw material:

LC = Letter of credit, which basically means the bank in Nigeria debits your account, then once the shipper ships he gets the funds..
Last year and two, LC's were getting approved in 1-2 weeks. Now it is taking 3-4 months, so many manufacturers now source black market funds to pay for raw materials.

Bill for collection basically means the shipper ships on credit and you submit the paperwork to the bank for payment. CBN usually approved the funds in 1-2 weeks, the last bill for collection submitted by my company took 4 months for approval. If it were not for black market we would have stopped production and had to lay off people.

Many of you aren't into business and you don't understand what is going on. Let me explain in simple terms.

What this simply means is that lets assume you have N5,000,000 and you want to go tour around and have fun in Europe:

Back then, you could convert your Naira into dollar, pay into dom acct, then travel and have fun.

Now the only OPTION is Naira card which now thanks to CBN has daily ATM limit of $300/USD per day, and maximum $50,000 per year spend per customer.

For the average poor person who never crosses the border, this doesnt affect them. However, many Nigerians need to access more than $300/day and $50,000/year.


Also, lets assume you want to buy a new car for your child in USA. Value of car = $20,000. Back then you go to mallam, buy $20,000 USD, send it to your child ($10,000 per day CBN LIMIT) and in 2 days your child buys the car. Now with the new rule your child better get used to taking the bus.

What the CBN effectively did is prevent many law abiding Nigeria from remitting funds abroad. Its kinda like banning driving at night because armed robbers operate at night.

For the average person , this policy is meaningless. For the rest of us business men who source parts, products abroad, we are in for hard times.

Goodluck all

Chuckdee:


Oga, Since when has someones personal opinion become an offense? If you run a legitimate business and your government wakes up with a policy that puts you in a very awkward and difficult position how would you feel? Which bigger picture are you talking about here anyways? Coming up with a policy that totally cripples legitimate businesses who rely solely on outsourcing almost everything without succor to those people all in the name of tracking down money launderers is a no no! I believe your opinion will be totally different when a very close family member of yours dies simply because you need to deposit @5,000 for surgery abroad and y'all have the money and more but simply cannot send it out. Make sure you dont even shed a tear because like you said: ''endure for now and enjoy later'' NONSENSE!

---- 'E bulu ozu onye ozo n' isi odi ka ebu Ukwu nku' (When Another man’s corpse is being carried, it looks as if it were a log of wood)

onatisi:
very simple. Banks are no longer allowing you to deposit dollars or foreign exchange in your Dom account anymore. And we all Dom acc are mainly used by business ppl.
2)you can spend the money you have in your Dom account but can't fund it.
3) there is a 300dollars daily spending limit on cards and 50000$ annual spending limit.
So how do importers and manufacturers pay for goods they need for their goods manufacturing and services

twosquare:



Now, let's talk of importers...it is easier to import things from China where the markets are than manufacture in Nigeria. Why? Coz the platform, tools and environment for creating such is not available by the same Government policy. It is even more expensive...diesel, lack of constant energy, bad roads and poor ICT. So? How do importers pay? Perhaps they are trying to put them out of business...what about opening dom accounts in neighboring countries?

Chinom:



Typical Ndi Ofe coward. You waited for me to log out and go to sleep for you to crawl out of your gutter to spew thrash.

I'm pretty sure you were still in Pampers when I opened my first Pound sterling domiciliary account with Union bank. This is not a joke.
Did you ever bank with Barclays bank Nigeria ?. If not, then STFU. We are not mates.

SangoCrusader:


Barclays Bank Nigeria closed in 1979, which would make you at least 54 years old. Slightly younger than our aged president...

What is an old man like you doing on a blog

Your mates are out there ruling the country, and here you are arguing with teenagers. Agbaya!

Chinom:



Most of your comments are from a very selfish and egocentric view point. You need to look at the bigger picture. Are you aware of how many millions if not billions of dollars that was wiped out of Dangote's fortune as a result of the recent crash in Naira. Such business men really understand the importance of a strong Naira. If you are truly a business man, pray for this policy to continue, endure for now and enjoy later.

Do you know that a Nigerian could buy a house in London for N20,000 in the early 70s ?.

nd07:


I think u r d most cursed

Faraidi:
Bleep you!APC Myopic and gullible fool

onatisi:
what about western union and money gram services in Nigeria?

SangoCrusader:


[s]Barclays Bank Nigeria closed in 1979, which would make you at least 54 years old. Slightly younger than our aged president...

What is an old man like you doing on a blog

Your mates are out there ruling the country, and here you are arguing with teenagers. Agbaya![/s]

okpurukata:


I had given that option to many importers since last month and they could transfer $3000 daily. However CBN directed banks last week to stick to $1000 maximum for now daily. So it's not a viable option either.

I fore see a new business FX smuggling coming up soon.

Chinom:



No body's personal opinion is an offence. Including mine. But a situation in which a Nigerian will go to a Nigerian bank and demand to be paid in Dollars from his dom. account is crazy. I have travelled all over the world. Even in the most shitty countries in the world, the only way you can get dollar or pound sterling is through forex. either through the banks or the BDCs ( parallel market ).
If you do not know how to transact foreign businesses using Naira, then you're a novice in the business world. We cannot allow a situation in which someone will pay in Dollars into a Nigerian account and still make withdrawals in Dollar.
If I'm not mistaken, I think Western union has even started outward transfers from Nigeria in Naira. I can bet that this new policy of the banks, though temporary now, will become permanent with PMB in power.

ALL CASH BANK TRANSACTIONS IN NIGERIA SHOULD BE DONE IN NAIRA. Chikena !!

arsetalks:
First educate yourself. Learn how to spell during. While at that, learn not to be so biased.

jjman2322:


You dont get it do you? explain how you will get electronic transfer of funds into your domicilliary account.. Lets imagine you have N10,000,000 and need to send some funds abroad to family, friends, etc.. Your naira is useless and the mallam cant wire USD into your dom account since dollars cant be sent across banks in Nigeria... People are still confused about this policy.. Its crippling for legitimate business men.

DOM accounts has no yearly LIMIT or the $300 dollar/day limit... It was easy to deposit cash into DOM account and fund it.. Now the only way to get money from DOM ACCOUNT is through an electronic transfer...

For the donkey who complained about buying a $20,000 car for my child. I hope you realize there are millions of Nigerians who are rich and have legitimate businesses. (Car dealers, hotel owners, manufacturers, restaurants, etc) There are many people who make money 100% legit and dont deal in Oil subsidy fraud or government contracts.

Maybe you want your child to use a bus, however some parents see no problem in buying their child a $20.000 or $50,000 dollar car.

I dont even want to get into the medical aspect of this rule.

This just happened to someone i know today:

His dad needs to go to abroad for a procedure(hip replacement), he got the letter from the hospital today that the total bill is around $62,000 or thereabouts. He has naira, he needs dollars asap to pay the hospital deposit upfront and also be able to wire the rest. He asked me if I had dollars sitting abroad to give him and I said no.

I told him goodluck getting the funds to the hospital in the next 3 months He's gonna need all the luck he can get.

CBN is telling people there are channels for sourcing funds for legitimate business. ALL Manufacturers already know and use this. The only problem is that unless you're a manufacturer or an importer, you wont know that CBN does not have enough dollars, and its taking months to get funds from them..

Instead of CBN to use the dollars to settle bills for importers and manufacturers, they are using the funds to shore up the reserve. What is the point of the reserve if companies are closing and people are getting laid off.lol stupid country

jjman2322:
Let me make some quick predictions based on first hand experience.

#1. Legit manufacturers that were buying black market before for machines, parts and raw materials will no longer be able to do this due to the new rule. As usual, getting funds from CBN for these imports is still taking months.

#2. Prices of good will go sky high. As a manufacturer , if i only have raw materials to last for 3 months, I'll increase the price to make as much money as possible.. You guys wait for a few months and watch what happens in the market when supply < demand

Bottom line is when goods become scarce, prices go sky high. It was easy to wire funds abroad to China and India for goods, now its impossible.

#3. People need to realize the fact dollar depreciated in black market has nothing to do with our economy, it simply has to do with less demand(due to the fact it cant be deposited/wired). The CBN still has a problem meeting dollar demands from local businesses because the oil price is still low, and they are busy trying to shore up the reserve.

Nigeria is in for a bumpy ride ahead, and I wish everyone all the best.

I'm not saying this policy is all bad. The good news is that now crooks and corrupt people cant convert their naira to dollars and wire abroad to buy houses, stash the cash in foreign accounts, etc.

The bad news is that now legit businesses cant wire funds abroad to source materials they need for production. They now have to depend solely on CBN and that takes months at best.

Lets assume you have a small industry, and your machine brakes down and you need to wire $12,000 to india to get some parts to continue production ASAP, thanks to CBN you're basically f***ed.. Time to close up shop because your Indian spare part supplier has no way of getting that $12000. and NO, machine manufacturers and raw material suppliers abroad don't take gtbank naira cards. lol.

jjman2322:


exactly.. If you dont understand/still confused, go to your bank with $100. Tell them you want to send it to a friend in USA, and see what they tell you.

Also, no you cant wire out Naira to any other country. That hasnt been possible for generations. You also can't exchange naira in UK, USA, etc. Its as good as toilet paper abroad.