Nigerian banks are the culprit here.

Cbn should sanction all the Nigerian banks if they are truly serious about this thing.

But they can't because of Personal interests, and corruption.

jaybee3:


Let’s assume this is a brilliant idea, here are some pertinent questions for you to consider:
1) How should CBN source the outflow naira since they can’t simply use QE as soln
2) CBN can’t simply source Naira from the banks (Monetary Deposits) they regulate as that will simply turn them into a direct competitor

The 25 Commercial banks can do that

They were doing that before this evil party came and turned the entire system upside down and dumped it into the dustbin.

Cmeo:
Thank you Oyedele. These fundamental facts are what will drive us to a better management of our economy not just vague figures. This is qualitative analysis not just quantitative analysis that those neocolonialsts are giving us.

The factual fact!

MeineMutter:
All those TransferGo, TransferWise (Wise) etc are responsible. The dollar didn’t come.

Government should ban them.

Only companies like Moneygram, Western Union, Ria etc really remit dollars to Nigeria.

Greed too is k..1lling our people. They want to get money at black market rate and they are complaining Nigerian Naira is not better. Eating your cake and still trying to have it.

So blaming government failure on private individuals is the way then?

Cmeo:


No nation is immune of corruption, whether US, Vatican or Saudi Arabian. Regulations is what keep it at bay because regulations comes with penalties that deter people from unholy practices

Regulations that regulators are the first ones that break?

Aren't you following Emefiele's ordeal and all the things he did...

Even in those countries you mentioned, can anyone have the effrontery to take the kind of actions leaders take here....where someone will steal and will still laugh and get away with it because his friends are the judges, police offers and other enforcers of the law

We don't have strong institutions and some people are bigger than the regulations and laws. SIMPLE.

linearity:


I don’t see the difference, that $1,000 does not necessarily have to hit Nigeria.

That $1,000 triggered the payment of N1.2mil from a local bank in Nigeria to the intended recipient in Nigeria, thereby increasing the demand for Naira which would have helped the exchange rate of Naira if our monetary policies are right.

Also that N1.2mil would trigger economic activities in that region of Nigeria which would have otherwise be dormant. A bricklayer would be paid, a market woman will collect part of that money in exchange for garri, etc.

The situation is the same if the person brought the physical dollar into the country, they will go to aboki and aboki will go to his bank and get N1.2mil to give the individual.

The reason FG is not happy is because they want to be in custody of that $1,000. Why would anyone in their right senses give the FG $1 in exchange for N800, when they can get N1,200 across the street?

The thing sef dey one kind.
All these rubbish won't stop until we begin to hold our leaders accountable in real life.

pacespot:


So na so flutterwave and Cos be blocking dollars from reaching Nigerian banks thereby causing the Naira to crash against the greenback?

But I think most of the problems are from Nigerian banks, I have a lot of dollars in my forex trading account but I'm not allowed to do bank withdrawal of dollars even though I have a domiciliary account linked and from which account I transferred the money I used to start trading in the first place. It is same story if you want to withdraw dollars from Binance. Nigerian banks will convert the dollars into Naira, so that means Binance gets to keep my dollars while sending Naira into my account. You can't even transfer dollars from your domiciliary account into another account these days.

The stress is too much and they are expecting people not to look for apps that won't stress them.
Wetin con be the benefit of the dorm account when restrictions just full ground yakata

BennyDGreat:


Regulations that regulators are the first ones that break?

Aren't you following Emefiele's ordeal and all the things he did...

Even in those countries you mentioned, can anyone have the effrontery to take the kind of actions leaders take here....where someone will steal and will still laugh and get away with it because his friends are the judges, police offers and other enforcers of the law

We don't have strong institutions and some people are bigger than the regulations and laws. SIMPLE.

It is true some people could seem bigger than some regulators but they are not bigger than all of us equipped with the power of social media. We as citizens needs to play our part by saying something if we see something

ubev01:
So after paying from their naira reserves, how do they replenish their naira reserves without dropping dollar for naira, and it's not like they close shop after selling their naira. Make it make sense

It's a two way thing.

Some people are paying naira here for the companies to help them with things like subscription, application fees and other kind of payments abroad.

Then those foreign guys drop dollars..... everything eventually balances as long as they have large influx of people on both ends.

Cmeo:


It is true some people could seem bigger than some regulators but they are not bigger than all of us equipped with the power of social media. We as citizens needs to play our part by saying something if we see something

Ahh Baba....this thing don pass social media criticism.

There must be a way to hound those people and physically put them in prison to suffer without privileges. If not, we will only shout on social media and those people will still walk free or at most get like 2/3 years in jail when they ought to use life in prison.

grandstar:


Leave the Fintechs alone. It's a lame excuse.

Common sense dictates the Naira paid out to the recepient is backed by forex. The grammar of it entering or not entering the country is semantics.

It's the equivalent of saying the global forex market does not affect the value of your currency because it is electronically traded and involves a lot of leverage, that it is a Kalo Kalo market.⁰00⁰

The government must sit up and do its job. The CBN needs to increase interest rates to tame inflation which will instantly arrest the weekly slide of the Naira. This will restore confidence in the local currency and start an appreciation of it.

Next, it might be best the government pegs the Naira at the official market and defends that rate, which will reduce the gap between the official plate and the black market to between 2-3%. The official rate should slightly devalued so it can be a rate the CBN can easily defend and also make the country's products and services competitive.

Remittances sent through apps should be paid in Naira. If the Naira rate is stable, most people will be fine with it.

Even with all these strategies, there will be a major flop if we don't increase export earnings by a great deal.

The imbalance will undo the good fx policies....

The government is shying away because of the work involved and want easy way out which can never be sustainable

dettolgel:


There is a difference between 90% of the dollar did not get to Nigeria and that 90% of remittance didn't get to Nigeria. Please do you guys think you are talking to kids?

One thing I give APC government is that they know how to run effective propaganda.

That the dollar did not get to Nigeria does not mean that 20 billion dollars was not remitted. It is up to the government to find a means to get their hands on it.

Why do they even need their hands on it?

It's private money. Them laying their hands on it is to make money off it.

Let them go and fix our export earnings and stop disturbing people they didn't help to succeed in life. Wetin Naija government contribute to the life of most of those people abroad?

Treadway:
I already explained this last year when some were waiting for December to come, onto say dollar will roll in......in 2023?? When there are plenty apps that they use to send money and the recipient gets naira equivalent. Ain't nobody coming around with cold hard USD anymore, but dem no hear word..

Now wey world Bank don explain same thing, maybe dem go hear. Op freestuffsng wey no kuma know him left from right dey say make govt go after fintechs that have provided ingenious and working solutions (a feeling/concept he knows nothing of) to the problems of many, because his own country are filled with inept people like him. Smh

U dey mind the guy. Like say fintech na the problem. People that are jejely doing their business.

udeh3:
These talks no follow abeg... The Fin tech companies had CAC registration, there's NDIC certification, SCUML, ICPC, CBN and other bodies that are involved when it comes to opening a company's business accounts not to talk about a FINTECH company operating in Nigeria. All financial transactions are monitored. There are auditors too, the FINTECH companies are well known, so, what stops the CBN writing policies to track them down. Are these financial money related bodies telling us that they don't know how the money gets to the fintech companies and how they can make them accountable at the equivalent rate?

If you think the fintechs are the problem. You don't have an accurate perspective of the issue at hand.

It’s fintech

Money won’t leave the country again
They will only pay u naira

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance in Nigeria!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If our financial regulatory control laws don't reach those fintechs, our tax laws should. FG must go after them and their collaborators here in Nigeria.
May God bless Nigeria for ever! Check my signature for free stuffs!

Chai see knowledge 👊👊👊. Pls what do I have to read up to know these things?

FreeStuffsNG:
90% 2023 diaspora remittances didn’t get to Nigeria — Oyedele

https://www.vanguardngr.com/2024/01/90-2023-diaspora-remittances-didnt-get-to-nigeria-oyedele/#google_vignette

It’s common sense and simple logic!
If an App/Fintech would offer me say 1300 Naira to a $, how then would I, as a rational person, go for an option that offers less, say official bank rate of 750 to $?

Make it attractive enough and the $ will flow in

BennyDGreat:


Ahh Baba....this thing don pass social media criticism.

There must be a way to hound those people and physically put them in prison to suffer without privileges. If not, we will only shout on social media and those people will still walk free or at most get like 2/3 years in jail when they ought to use life in prison.

I concur, this is a better solution.

planetx:
Are you sure they can withdraw in pounds or dollars from Nigerian banks?

Yep! But the service charge from my end is quite steep….£25!

BennyDGreat:


So blaming government failure on private individuals is the way then?

Government didn’t fail. We are the ones that failed the government. We are the government. We only have a few people to represent us as leaders. We are saboteurs. We are greedy. We are selfish. We are impatient. We don’t love our country. We are not ready to sacrifice.

Check your heart well. How many good deeds have you done today towards your country and your fellow human beings?

Any country where you see things work, it is not the ‘government’ you are talking about that made it ok. It’s the citizen that resolved to make things work.

Along Okokomaiko or anywhere around Nigeria where, for instance, container-laden truck falls on a fellow citizen, instead of fellow standbys and passerby to help, they would bring out there phones and be recording and shouting ‘ IT IS HAPPENING LIFE NOW ALONG OKOKO…. HELP US SHARE AND LIKE …
If the injured is lucky to get to hospital, fellow bad citizens would insist on getting some deposits before their fellow citizens could be attended to.

Come over here and see where a common rabbit is crossing the road. All vehicles will wait until it has successfully entered bush. We’re those people instructed by government to have good deeds?

We have people who have passed through some areas today and saw some dangerous things that could injure other road users. What effort have they made to inform passerby or try to remove that danger?

If you do 15 goods in a day and I do 15 goods in a day and everybody does 15 goods everyday without doing any bad, give us 10 years and Nigeria would be like paradise.

BennyDGreat:


Why do they even need their hands on it?

It's private money. Them laying their hands on it is to make money off it.

Let them go and fix our export earnings and stop disturbing people they didn't help to succeed in life. Wetin Naija government contribute to the life of most of those people abroad?

Why they need their hand on it is a different conversation. I agree with you that if they are interested in having it they should fix the system.

dettolgel:


Why they need their hand on it is a different conversation. I agree with you that if they are interested in having it they should fix the system.

Nigeria can come out of the current mess with a solid 15-20 years workable plan and a total commitment to it.

My worry is Why is Naira crashing so rapidly since 3days ago

I agree with Oyedele on this. The demand for $$$ does not compensate for FX rate going over the moon(not at the pace at least). One thing of note is that the deposits from these transactions does not show the sender’s name (the banks would know where the money is from)
If the government intends to block these currency speculators (FinTechs) from “further manipulating the FX rate” , the CBN should revert to Buhari’s tenure when they ensured that any funds going through the apps would only be received by the recipients in USD ( either in their domiciliary account or cash) . The sender pays a fee (was pegged at 1% of the transaction sum) and $$$ arrives in Nigeria.
This way, the remittances can be properly tracked and I believe FX rate would be stable as pressure on Naira would be less. Who is ready to take the bill by the horn?

MeineMutter:
All those TransferGo, TransferWise (Wise) etc are responsible. The dollar didn’t come.

Government should ban them.

Only companies like Moneygram, Western Union, Ria etc really remit dollars to Nigeria.

Greed too is k..1lling our people. They want to get money at black market rate and they are complaining Nigerian Naira is not better. Eating your cake and still trying to have it.

Animal like you has never contributed anything to the country. Did the useless CBN give them fx at official rate when they’re traveling? Didn’t they bought at the black market due to CBN’s perpetual “no fx” bulshit? Now they want to reap where they didn’t sow.. thieves. Let them go meet their co-travelers they sold fx through the back door to round trip .. nonsense

LastProphet:


Not everybody cares or has virgin island accounts, they are talking of the average joe that wants to send $1,000 out of his salary to his family in Nigeria, they get in touch with other Nigerians over there in the US who acts as a currency trader. You send the $$ into their $$ account there in the US and then they use their naija account to credit your naija local account at the black market rate. Until the thief emiefele came along it wasn't attractive to look for those individual currency traders because you could just send your money down through WU and your family goes to the bank in naija to collect it in $$ or naira at a rate close to black market. Upon useless policies emiefele was still stealing the $$ and he's still walking around asking for bail, what a country of clowns

What are talking about? Even as we speak, if you send dollars through western union to Nigeria, you will still receive it in dollars from any of their outlets in Nigeria banks.
Nothing has been removed.

RepoMan007:
So dollars goes to govt who subsidizes the sales to pilgrimage goers, fake hair buyers and wine importers among other wasteful things.
One question though, the fintechs settling Nigerians abroad in exchange for dollars, which currency are they crediting those Nigerians with? If Naira, are they printing or stealing it?

Naira of course. The thing is that these fintech companies have Naira-domiciled accounts in Nigeria which they use to settle these transactions for their users, but their dollar accounts are offshore so CBN doesn't get to see these dollars from diaspora remittance.

sonnie10:

What are talking about? Even as we speak, if you send dollars through western union to Nigeria, you will still receive it in dollars from any of their outlets in Nigeria banks.
Nothing has been removed.

Yes you receive at CBN rate set by emeifele, when parallel was over N700 the CBN ratye was 440 and they stopped giving people their $$, that's where they lost the people

LastProphet:


Yes you receive at CBN rate set by emeifele, when parallel was over N700 the CBN ratye was 440 and they stopped giving people their $$, that's where they lost the people

There had never been a time when commercial banks stopped giving remittances in dollars. From the time of Emeifele up until now.

sonnie10:

What are talking about? Even as we speak, if you send dollars through western union to Nigeria, you will still receive it in dollars from any of their outlets in Nigeria banks.
Nothing has been removed.

That’s a lie. It appears so on paper but when you go to any these banks, they will tell you that they don’t have fx and offer to pay equivalent into your account, of course at official rate. Did that many times, tried almost al the major banks and still same story. Meanwhile CBN disburse fx to them weekly but yet, they hoard it and sell to their cronies who in turn round trip at the black market for profit. Applied through trader system for school fees payment abroad and for 6 months, it’s still on “processing” even after submitting all required documents, defaulted and had to borrow funds to source for fx via black market. And when I want to send fx back home, you want me not to use black market rate? Una dey craze

The only way is for FG to mandate the Apps to pay in USD so the money is exchanged in Nigeria one way or the other.