A solution I propose is that which involves

The CBN provides dollars to primary or secondary holders (Banks/MFBs. maybe even BDCs) who in turn resell under the condition below.

1. The verified holders are only allowed to sell via a tech platform where every inflow and outflow of dollar will be monitored. Each FIs will be audited and heavy sanctions placed on defaulting institution.
2. The dollar will be exchanged/bought only through the platform and cannot be cashed out in any way
3. The platform allows anyone to register just like any Fintech App with verifiable KYC.
4. The users of the platform exchange naira into forex at the CBN determined rate and can then use this to pay for anything on any website
5. Any third-party provider that wants to accept dollar payment or facilitate this can integrate to this platform, getting their token and deducting via this platform. This will only happen for intl transactions like school fee, visa fees etc.
6. The dollar/forex cash on the platform will only be valid for a maximum period of 48-72 hours after which it will be liquidated back to it's naira equivalent should it be unused.
7. Dollar cash cannot be a legal tender in Nigeria for any reason.

Advantages
All Nigerians can access dollar without leaving their house.
Every dollar transactions can be monitored.
Almost zero scarcity which usually leads to higher exchange rate.
Nobody will be able to hoard dollar and all physical dollar cash.

Cc NLFPMOD, Lalasticlala, dominique, FOD, puskin, naijacutee. Help push to FP for audience validation and feedback if this will work.

Your understanding of macroeconomics is LIMITED. And your proposed solution is LAUGHABLE.

You want to convert people's Dollars to Naira by FORCE. And you think people will use the platform?

Funny!

The description makes it sound like another fintech idea that solves ZERO problem. It'll NOT stop Nigeria from bleeding money from the excessive need for importation.

Nigeria's problem is a balance of trade that is skewed HEAVILY on the side of importation. We need to shift it back to equilibrium at least.

That can only be done by making exportation easier. Increasing the quality of our local products so that the can REPLACE import and possibly become viable for export is also a thing.

Cutting the cost of governance will ALSO help.

Majority of the construction projects in Nigeria are handled by Julius Berger and CCEECC. Both of which will eventually REMIT their profits to their home country. To do that they'll need to convert whatever Nigeria pays them to dollars.

That puts more pressure on the Naira.

Getting Nigerian contractors to handle our construction projects will go a long way in relieving the pressure on Naira.

Plus, Nigerian contractors may do it cheaper and lessen the inflation rate. That's also a positive for our exchange rate.

Another thing is that Nigeria needs to convince more companies to set up more factories in Nigeria.

To do that, Nigeria needs to fix its power issues and its insecurity issues. But that's a LOT of work. And that's why they adopt PHONY solutions like the one you suggest.

Namaster:
Your understanding of macroeconomics is LIMITED. And your proposed solution is LAUGHABLE.

You want to convert people's Dollars to Naira by FORCE. And you think people will use the platform?

Funny!

The description makes it sound like another fintech idea that solves ZERO problem. It'll NOT stop Nigeria from bleeding money from the excessive need for importation.

Nigeria's problem is a balance of trade that is skewed HEAVILY on the side of importation. We need to shift it back to equilibrium at least.

That can only be done by making exportation easier. Increasing the quality of our local products so that the can REPLACE import and possibly become viable for export is also a thing.

Cutting the cost of governance will ALSO help.

Majority of the construction projects in Nigeria are handled by Julius Berger and CCEECC. Both of which will eventually REMIT their profits to their home country. To do that they'll need to convert whatever Nigeria pays them to dollars.

That puts more pressure on the Naira.

Getting Nigerian contractors to handle our construction projects will go a long way in relieving the pressure on Naira.

Plus, Nigerian contractors may do it cheaper and lessen the inflation rate. That's also a positive for our exchange rate.

Another thing is that Nigeria needs to convince more companies to set up more factories in Nigeria.

To do that, Nigeria needs to fix its power issues and its insecurity issues. But that's a LOT of work. And that's why they adopt PHONY solutions like the one you suggest.

Absolutely right.
So on point!

Namaster:
Your understanding of macroeconomics is LIMITED. And your proposed solution is LAUGHABLE.

You want to convert people's Dollars to Naira by FORCE. And you think people will use the platform?

Funny!

The description makes it sound like another fintech idea that solves ZERO problem. It'll NOT stop Nigeria from bleeding money from the excessive need for importation.

Nigeria's problem is a balance of trade that is skewed HEAVILY on the side of importation. We need to shift it back to equilibrium at least.

That can only be done by making exportation easier. Increasing the quality of our local products so that the can REPLACE import and possibly become viable for export is also a thing.

Cutting the cost of governance will ALSO help.

Majority of the construction projects in Nigeria are handled by Julius Berger and CCEECC. Both of which will eventually REMIT their profits to their home country. To do that they'll need to convert whatever Nigeria pays them to dollars.

That puts more pressure on the Naira.

Getting Nigerian contractors to handle our construction projects will go a long way in relieving the pressure on Naira.

Plus, Nigerian contractors may do it cheaper and lessen the inflation rate. That's also a positive for our exchange rate.

Another thing is that Nigeria needs to convince more companies to set up more factories in Nigeria.

To do that, Nigeria needs to fix its power issues and its insecurity issues. But that's a LOT of work. And that's why they adopt PHONY solutions like the one you suggest.

While you mentioned that Nigerians use dollar for importation, paying of foreign companies for work done, statistically, can you compare the amount of USD spent on importation compared to the total USD issued by the CBN to BDCs, Banks or other institution?


All those you mentioned as solution may work but it's what is supposed to be the standard for any working country and not the solution to the immediate problem Nigeria is facing which is hoarding of Forex.

I won't be surprised that you're guilty of hoarding forex without having any use for it