dapsonlou:
Some People will come here and start Screaming Dullard. The previous administration Looted all our Dollars. Even the Election was paid for in Dollars

You are very stupid, you don't know anything about our economy,you are a typical Nigerian illiterate. We don't need idiiots in this country.

Activa are you arguing just for the sake of it? The point is that travellers haven't been able to buy PTA/BTA for weeks now! After making me to open current account, a few days later Union Bank stopped selling PTA stating that they received a circular from CBN to stop. Whether it is a ban or suspension or pause or whatever the point is that citizens are unable to get forex for genuine purposes. Now they want to stop people from using cards abroad. Who benefits then? Black market will keep rising and the stupid banks will continue exchanging at black market rates.

obailala:
... A lot of Nigerians obviously do not know what is going on, a lot of people have absolutely no idea how close Nigeria is to a total economic collapse and the CBN and FG obviously isnt communicating maybe in order not to cause panick.

Economics 101:
The nation is import dependent which means there's a high forex outflow. The main source of forex inflow is oil and oil prices have crashed massively to an 11-year low (even though expenditure has increased massively). Right now the nation spends more forex (via importation) than it earns (oil export) and consequently, the stock of foreign exchange is reducing drastically.

These checks by the CBN are simply to prevent Nigeria from becoming Greece or Venezuela. The CBN is struggling to prevent a situation where the foreign reserves are depleted on ebay businesses as you say, or by people going on leisure holidays abroad and then in a few months, the country wouldnt have any forex left to import food to feed its populace. This is no longer about the CBN trying to save the value of the naira, it is about the CBN desperately trying to save the nationfrom crashing and this is certainly not the time for people to be going randomly on leisure holidays. If only the CBN and the government would just communicate more properly and let the people know how bad things really are, how close the nation is to total collapse, maybe we wouldnt have people complaining of 'no funds for holidays' anymore. People would rather be more concerned about feeding.

Just incase you didnt know before now, I'm sure you should now understand the picture better with my explanations above and you should now understand why the CBN is desperately trying to prevent the outflow of forex; it is to save you and I from the Greek / Venezuelan situation which is imminent in a few months if oil prices don't come up.

Cc: Caracta, icecomrade, dabriggs, kenny987, kennyman2000, ugolance, seggzz, 2sex, zuby77, jaid23, erico2k2, ecel, Iko5000, musicwriter, ifyalways, godoluwa, NavierStokes

Now this is another disturbing development. Things are actually worse than it seems, yet some people still complain they dont have forex for xmas holidays.

Thank you!

I told someone here earlier today about Nigeria spending more dollars than it's earning and he didn't understand it at all.

This is not cbn or buhari's fault but they must provide solutions.

Nigerians must change their import-friendly habits. Must everything be imported?

Does this mean that one can't pay for school fees with those cards from Nigeria here?

When APC was complaining about dollarization of our election .. Ediotic PDP sychophants told em to shut up.. No wonder their hero left when he lost ...

Lunatics ..

Dentale:
Activa are you arguing just for the sake of it? The point is that travellers haven't been able to buy PTA/BTA for weeks now! After making me to open current account, a few days later Union Bank stopped selling PTA stating that they received a circular from CBN to stop. Whether it is a ban or suspension or pause or whatever the point is that citizens are unable to get forex for genuine purposes. Now they want to stop people from using cards abroad. Who benefits then? Black market will keep rising and the stupid banks will continue exchanging at black market rates.

Do you think cbn manufactures dollars?

Where will cbn get dollars for every purpose of your country doesn't earn enough?

Crude oil price has fallen by more than 60% compared to a year ago. Oil contributes 90% to our foreign exchange earnings.

TeOwl:
are you trying to use it online or in an ATM?

ATM since Monday..I can't make withdrawal

Activa:


Do you think cbn manufactures dollars?

Where will cbn get dollars for every purpose of your country doesn't earn enough?

Crude oil price has fallen by more than 60% compared to a year ago. Oil contributes 90% to our foreign exchange earnings.

I agree but the oil drop isn't affecting only Nigeria. A few months ago they rejected dollar cash deposits. Now they don't have dollars. Didn't anyone at CBN anticipate this? It's not as if the dollar dropped suddenly. At the end of the day, CBN is benefiting commercial banks and black market operators with no thought of how travellers or SME businesses will survive. Imagine the situation now? What do you suggest people abroad do when they didn't get PTA/BTA and now cards are being disabled for international transactions? They can't even access the dreaded black market from abroad.

There is no job in the country, and he's blocking the source of income of guys who are doing small importation to survive. What sort of heartlessness is this? GEJ was "stealing" and things were moving, now Saint Buhari is not stealing and we're in this mess! Do they even know the long-term effects of this mumulistic policy?

A more realistic approach of monetising foreign exchange allocations to the federating entities (states, LGAs, and e.t.c) would probably be to disburse foreign exchange vouchers to the respective beneficiaries which could be redeemed for Naira as and when needed.

Futhermore, the above referred modus would, over time, ensure that both the interest rate and inflation rate fall to the desired single digit. This singular reform would go a long way to revert the economy to equilibrium.

1. Do the above (check excess liquidity).
2. Get the refineries working (including new ones) so we stop importing refined products, rather exporting refined products.
3. Review importation of food, and some other silly items.
4. Improve power supply.
5. Encourage exports (all).
6. Work on security.
7. Attack corruption and stealing of public funds.
8. Checkmate currency racketeering from the FG, CBN, banks, BDCs, to independent racketeers.

Do 90% of those, and watch the Naira appreciate, probably trade @ less than N150 to $1, regardless of if a barrel of oil is sold @ $1/barrel or not!


https://www.nairaland.com/844884/solution-fuel-subsidy-wahala-look

http://eaglereporters.com/2015/06/01/buhari-vs-a-clueless-mpc/

"The problem of the Nigerian economy will remain intractable until the CBN's monopoly of the forex market is dismantled" _ Les Leba.

http://www.lesleba.com/ these guys no more about the economy than all of Nigeria's economic team from the past and now put together, but their voices are consciously drowned.


https://www.youtube.com/watch?v=MLSvITJc9uk

Caracta:


I didn't call it a ban actually. I called it a SUSPENSION...temporary suspension.

My sister, these are tough times for the country. We don't have enough exports. We import too much. We also didn't save for the rainy day.

If CBN stopped the restriction for foreign exchange, we would deplete the foreign reserves in no time and be unable to pay for essentials like food, drugs and critical equipment.

It's a clear choice - spend the limited fx on non-essentials or on essentials?

Cotton:


To the best of my knowledge, inflows (transfers) have not been blocked. Received payment last week by inflow, so long as you satisfy the bank's KYC requirements. What has been blocked are cash deposits and local dollar inter-bank transfers

but cbn has to create an option for cash deposite,sme use this method for importation of raw material...you cannot throw the baby away with the bath water

obailala:
... A lot of Nigerians obviously do not know what is going on, a lot of people have absolutely no idea how close Nigeria is to a total economic collapse and the CBN and FG obviously isnt communicating maybe in order not to cause panick.

Economics 101:
The nation is import dependent which means there's a high forex outflow. The main source of forex inflow is oil and oil prices have crashed massively to an 11-year low (even though expenditure has increased massively). Right now the nation spends more forex (via importation) than it earns (oil export) and consequently, the stock of foreign exchange is reducing drastically.

These checks by the CBN are simply to prevent Nigeria from becoming Greece or Venezuela. The CBN is struggling to prevent a situation where the foreign reserves are depleted on ebay businesses as you say, or by people going on leisure holidays abroad and then in a few months, the country wouldnt have any forex left to import food to feed its populace. This is no longer about the CBN trying to save the value of the naira, it is about the CBN desperately trying to save the nationfrom crashing and this is certainly not the time for people to be going randomly on leisure holidays. If only the CBN and the government would just communicate more properly and let the people know how bad things really are, how close the nation is to total collapse, maybe we wouldnt have people complaining of 'no funds for holidays' anymore. People would rather be more concerned about feeding.

Just incase you didnt know before now, I'm sure you should now understand the picture better with my explanations above and you should now understand why the CBN is desperately trying to prevent the outflow of forex; it is to save you and I from the Greek / Venezuelan situation which is imminent in a few months if oil prices don't come up.

Cc: Caracta, icecomrade, dabriggs, kenny987, kennyman2000, ugolance, seggzz, 2sex, zuby77, jaid23, erico2k2, ecel, Iko5000, musicwriter, ifyalways, godoluwa, NavierStokes

Now this is another disturbing development. Things are actually worse than it seems, yet some people still complain they dont have forex for xmas holidays.

Yes it is understandable that out dollar earnings are less then our expenditure so of course the best way is to save Forex for more important things. There is also the link regarding the fact that the less we earn in terms of Forex especially from exports the more our own economy will weaken and ultimately currency will depreciate in value.

Why I say it is cosmetic is that we allowed our selves get to this level. And like I said IF this is the naira-dollar thing then it wont work. You have explained clearly and brilliantly so that it is beyond naira-dollar thing.

worry is this move will not SUDDENLY stop Nigeria and Nigerians from being heavy importers of even toothpicks. The trend did not start today. Of course the solution must have a start date, but are we really going to get serious with other actions that will eventually elevate the economy and country out of this problem?

Will power be fixed and stable? Will security increase and get better? Will politicians stop looting? Are they also ready to cut down their holidays? Will investors trust the country to want to invest? Will they truly diversify our revenue generation from crude oil to agriculture, solid mineral mining etc? Will refineries be allowed to operate and petrochemical uses of oil encouraged in Nigeria?

Anyway we can take solace in the fact that the solution must start someday. It is either we start now and hope for the best or we suffer big time for a very long time-hoping that oil prices will go up. I hope this is move to a more sustainable fiscal solution. And I hope as leaders they are also willing to bear and share the sacrifices.

Activa:


What is the way out?

Nigeria did not save in times of plenty dollars.

Yes yoy are right but that is the least best option

dapsonlou:
Some People will come here and start Screaming Dullard. The previous administration Looted all our Dollars. Even the Election was paid for in Dollars

You people should stop this nonsense joo. Who looted all your dollars? Buhari has been there for seven months now. What about the dollars they have got? Jonathan also carried away all your fuel, he also carried away all the naira hence they cannot pay salary or do they pay salaries in dollars? Jonathan delisted Nigeria from world economic platforms, he looted all the credible elections, he is responsible for boko haram even after election, but buhari was the one that built the rail project amechi commissioned last week?

Activa:


Devaluation will increase prices and be hard on Nigerians.

Nigerians must learn to produce locally. That's the way out.

If you don't earn dollars, why should you w to spend dollars?

I tell u, if the government keep doing things this way the prices will surely increase, what do u think will happen when a dollar hit #500 Naira?, will the price remain the same?.

U talked about manufacturing but, u failed to understand that u have to put things in place before manufacturing can take place, the former administration has Automobile Road map, a policy that gave Nigerians time to adjust and see the new car plants coming up, before he can turn this economy to an industrialised one their has to be a Road map, this Government lack planning, they do things like primary school children.

Diamond bank sent me an email that my ATM card can no longer work in any ATM/POS in China, UAE and every African country (asides Nigeria of course).

babyest22:

ATM since Monday..I can't make withdrawal

This had better be a rumor! What rubbish is this? This is just like taking us to the stone ages in the world of global financial transactions so we'll need to go and be pushing paper to get things done? Rubbish, rubbish, rubbish!

obailala:
... A lot of Nigerians obviously do not know what is going on, a lot of people have absolutely no idea how close Nigeria is to a total economic collapse and the CBN and FG obviously isnt communicating maybe in order not to cause panick.

Economics 101:
The nation is import dependent which means there's a high forex outflow. The main source of forex inflow is oil and oil prices have crashed massively to an 11-year low (even though expenditure has increased massively). Right now the nation spends more forex (via importation) than it earns (oil export) and consequently, the stock of foreign exchange is reducing drastically.

These checks by the CBN are simply to prevent Nigeria from becoming Greece or Venezuela. The CBN is struggling to prevent a situation where the foreign reserves are depleted on ebay businesses as you say, or by people going on leisure holidays abroad and then in a few months, the country wouldnt have any forex left to import food to feed its populace. This is no longer about the CBN trying to save the value of the naira, it is about the CBN desperately trying to save the nationfrom crashing and this is certainly not the time for people to be going randomly on leisure holidays. If only the CBN and the government would just communicate more properly and let the people know how bad things really are, how close the nation is to total collapse, maybe we wouldnt have people complaining of 'no funds for holidays' anymore. People would rather be more concerned about feeding.

Just incase you didnt know before now, I'm sure you should now understand the picture better with my explanations above and you should now understand why the CBN is desperately trying to prevent the outflow of forex; it is to save you and I from the Greek / Venezuelan situation which is imminent in a few months if oil prices don't come up.

Cc: Caracta, icecomrade, dabriggs, kenny987, kennyman2000, ugolance, seggzz, 2sex, zuby77, jaid23, erico2k2, ecel, Iko5000, musicwriter, ifyalways, godoluwa, NavierStokes

Now this is another disturbing development. Things are actually worse than it seems, yet some people still complain they dont have forex for xmas holidays.

You don't strangle someone and say you're not trying to kill him/her.

Another angle to it is to ban totally all importation except for pharmaceuticals and agric produce. Then make sure all payments are made in naira ,no more dollars for ministers or government officials . Then try and encourage investors into the nation most especially real estates and housing.
Pls ppl should note that this problem isnt the fault of the dullard,but his management of the situation has greatly contributed to the problem deterioration.if he had realized the situation of things on time and started work early maybe just maybe thing may have been a little different by now you

tefund:
but cbn has to create an option for cash deposite,sme use this method for importation of raw material...you cannot throw the baby away with the bath water

That's is if we have a credible minister of finance

babyest22:
OMG...I'm in serious trouble. is this why diamond bank blocked my atm for nothing? I can't even do anything am stranded. I have never experienced such before...is this the change we voted for?

Am also stranded Abroad too. UBA arbitrarily sent me a message that I cannot withdraw with my ATM card in Asia and Africa. So all of us in ASIA And Africa should do what?

Caracta:
Makes no sense. Do you want travellers to suffer?

You suspended PTA/BTAs. You cut down daily withdrawal limit on mastercards used abroad. You suspended foreign currency deposits into domiciliary accounts. You placed limits on western union and moneygram outbounds.

Now this? I laugh.

But d policy is good in other dimension. It will break the activities of speculators who pump naira in their account and carry large of ATM abroad just to withdrwan dollars abroad. This has put pressure on banks in order to settle the foreign banks whose dollars were withdrawn by Nigerian speculators abroad.
Majority of those withdrawing from foreign ATM's are speculators not importers, so the pressure will be less.

adams009:


But d policy is good in other dimension. It will break the activities of speculators who pump naira in their account and carry large of ATM abroad just to withdrwan dollars abroad. This has put pressure on banks in order to settle the foreign banks whose dollars were withdrawn by Nigerian speculators abroad.
Majority of those withdrawing from foreign ATM's are speculators not importers, so the pressure will be less.

Are U sure? With the daily withdrawal limit of 300 daily??

erico2k2:

Are U sure? With the daily withdrawal limit of 300 daily??

I'm sure, this is what many international businessmen are doing and those operating in parallel market are having represntatives in Dubai, china and India were they are withdrawing dollars on their behalf.

Endtym Use.....What d Hell

adams009:

I'm sure, this is what many international businessmen are doing and those operating in parallel market are having represntatives in Dubai, china and India were they are withdrawing dollars on their behalf.

That was b4 the restrictions came I to force.how many times do U expect them to go to the Atm to withdraw 100 dolar? Dived that by 300.

Caracta:


Western union: 199,000 naira per customer/per quarter

Moneygram: 198,000 naira per customer/per quarter.

For outbound transactions only i.e. sending money abroad.

Thanks so much... Am not in Nigeria now

So I came in here thinking there will be some sort of practical solution to this issue but everyone is just complaining.

- How do we get to perform trasactions abroad?
- What is it that works now?
- Is opening an account in Ghana the only option now?
- Can we still make payments into foreign corporate accounts by visiting the banks and making wire transfer?
- does PayPal funding still work?
- So we that run hosting companies in Nigeria and have reseller accounts on servers abroad, what do we do? Please note that no stable power here so we possibly can't run dependable servers here.
- please we need solutions. If a thread can be created, that would be fine before some businesses start fading away.

Cc seun, lalalisticlala (hope I got this)

I no fit talk

cmon:
So I came in here thinking there will be some sort of practical solution to this issue but everyone is just complaining.

- How do we get to perform trasactions abroad?
- What is it that works now?
- Is opening an account in Ghana the only option now?
- Can we still make payments into foreign corporate accounts by visiting the banks and making wire transfer?
- does PayPal funding still work?
- So we that run hosting companies in Nigeria and have reseller accounts on servers abroad, what do we do? Please note that no stable power here so we possibly can't run dependable servers here.
- please we need solutions. If a thread can be created, that would be fine before some businesses start fading away.

Cc seun, lalalisticlala (hope I got this)

I will advise you to create another thread on this and see the contribution, this place is already crowded.