Wailing on the Economy
I love to read books and that habit means I frequent bookshops a lot. However, since I resumed duties as a Senator, I have not had as much spare time as I used to have so rather than buy in stores, I buy majority of the books I read online. So you could imagine my shock when I tried to purchase some leadership and management books from a foreign bookshop online only to find that my account, which is well funded, would not work! Then I got an email from my bank explaining to me that due to the realities of our economy, my ATM card is being restricted. I was shocked!

At first I thought the Economic and Financial Crimes Commission (EFCC) had incorrectly fingered me as a recipient of the fabled Dasuki money (I did not receive a dime and I did not solicit for such funds). But then a number of my friends reported similar experiences to me. Even at that, I could not believe that Nigerians could be precluded from spending their money as they deemed fit, until the British Broadcasting Corporation (BBC) news headline confirming my worst fears-Nigerian credit/debit cards are being restricted by the Central Bank of Nigeria (CBN)!

To say I was shocked would be an understatement! Forget about my books, what about people in more desperate circumstances than I was? This policy disproportionately punishes honest, hardworking and patriotic Nigerians who have domiciled their accounts, businesses and properties in Nigeria as a vote of confidence on their country. Many Nigerian politicians notoriously have foreign accounts and may not feel the pinch as much as ordinary Nigerians. And the thing is that it is precisely our politicians who have put us in this state and not the long-suffering Nigerian masses.

After I got over my initial shock, I made enquiries as to how people are copping with this economic blockade and I was moved to tears by the results of my findings. If you think that the naira is losing value solely because of the falling crude oil prices, you will be wrong. Part of the reason for the downward trend is a unique and new type of capital flight that has arisen in response to the realities of our forex restriction regime. You see, Nigerians, faced with the inability to use their ATMs abroad are heading to the Black Market, to buy foreign currency in unprecedented numbers and are then flocking to neighbouring countries like Benin Republic and the Republic of Ghana to open accounts there, because ATMs from Beninese and Ghanaian banks work overseas while those from Nigerian banks don’t. Imagine that!

Even if we must ban the use of Nigerian ATM card abroad, is it not better to take into account some realities before we implement such drastic measures? With the hugely successful Bank Verification Number (BVN) registration process, the CBN has the verified account details of all elected and appointed politicians in Nigeria. If at all we must ban, why not ban it for politically exposed people like me instead of ordinary Nigerians that depend on it? Do not punish regular everyday Nigerians for the wrongs of the political class! A lot of the small and medium scale enterprises that employ the majority of Nigerians, depend on their ATM cards to do business abroad.

What do Nigerians who are in foreign hospitals for life threatening illness do if they can’t access funds via ATM? What do Nigerian students schooling abroad and who depend on their parents to fund them via naira ATM do? How do bloggers pay for hosting if ATMs will not work on foreign sites? Is this the anti Social Media Bill via the backdoor? What do thousands of young Nigerians who promote their businesses to the world via Facebook/Twitter Ads do? #PunishpoliticiansnotNigerians!

These people are not just statistics. They are young men and women who trooped out in their millions to vote in the All Progressive Congress (APC) to power. And now how are they being rewarded? There is no fuel and when you complain you are told that former President Goodluck Jonathan is the cause of the fuel scarcity! Really? When electricity improved in June it was not Jonathan’s fault but when there is fuel scarcity in December, six months after he handed over, it is his fault. As our young people will say, issorai!

The sad thing is that while Nigerians are going through these hardships and trying to take it in their stride, their governors, who they look to for help, are threatening to reduce the minimum wage! At the time the new Minimum Wage Bill was signed into law by President Jonathan, the ₦18,000 wage was equivalent to $130. Today the minimum wage is worth only $75 and rather than thinking about how to raise it, our hovernors are conspiring on how to reduce it. It is like spanking a child and when the child is crying you begin taunting the child. How sad!

With this policy on ATM use abroad, those in power are making Nigeria into a country where the poor pay for the sins of the rich and powerful. Nigeria is going through tough times and what we need is a government that includes not one that excludes! Blaming all our woes on Jonathan is just escapism and a revision of history. If we need to conserve our reserves, there are practical and commonsensical actions we could take rather than this action, which seems rather knee jerk.

In a news story on Bloomberg, the magazine quoted Shoprite’s South African CEO, Whitey Basson, as saying the retailer’s seven stores in Nigeria sold more Moet & Chandon champagne than all the liquor shops in South Africa last year. May be you did not get me. Mr. Basson is not just saying that Shoprite sold more Champagne in Nigeria. No. He said that Shoprite sold more Champagne in Nigeria than all the stores in South Africa (including their competitors) combined! To put it in perspective, Shoprite has less than 20 stores in Nigeria and over 400 in South Africa! Now these are the foxes that spoil our economic vine!

The problem is not that we are drinking so much champagne, the problem is that we are importing the product and paying for it with our foreign reserve. I could understand if we were importing life saving medicines, but Moet & Chandon champagne is a luxury. In 2014, official records show that 768,131 bottles of champagne were imported into Nigeria at a cost of over $100,000,000. When you factor in the fact that one company, International Wine and Spirits, claims that it sold 1.1m bottles of champagne in Nigeria, it means that more of the product is being smuggled in through our porous borders than those coming in through official channels.

And who are the champagne drinkers in Nigeria? Certainly not regular Nigerians who are eking out a living using their ATM cards as a cashless form of skin business over the border.

No. It is the political elite again who are to be blamed. In the past 50 years, Nigeria has paid for maybe a million people to go on pilgrimage. Imagine if we had paid for a million people to start businesses instead! If we had done that, we would not be so dependent on oil rent. We would, like other nations, be dependent on taxes paid by a productive population who makes the things that they consume. We would have saved billions of dollars the state paid as air tickets, Basic Travel Allowance and other incidentals.

Not that I am against pilgrimages. If ones religion requires pilgrimages as a sacrifice then by all means go. But if government has to pay for your pilgrimage, then how is it a sacrifice? It is no longer a sacrifice. It becomes a holiday! I advise the present administration to swallow its pride and instead of vilifying Ngozi Okonjo-Iweala, should consider consulting her for advise on how she was able to coordinate the economy in such a way that Nigeria enjoyed seven years of economic stability in which our currency maintained its value and workers were paid on time and regularly too. Propaganda can only sustain you for so long. Blaming others can only fool weak minded people for just that long. But over time, it will keep becoming clearer and clearer that the emperor is naked. May we never get to that stage.

My name is Ben Murray-Bruce

This policy is really embarrassing those who campaigned for change.

I have consistently maintained that the CBN's current FX Policy is beyond ridiculous.
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It is obvious that the president is sentimentally attached to the value of the Naira, but I blame the CBN Governor more for the current situation. He doesn't look confident enough to man up to the president. If every oil exporting country (including Canada & Norway) has seen its currency value depreciate against the dollar due to decline in oil prices, then it is foolhardy for the CBN & the FG to grandstand.
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It is complete nonsense to allow private citizens & businesses (by extension the whole economy) to suffer simply because of attachment to strong Naira value.
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We will only know how bad things are when the NBS releases its economic numbers for Q4-2015.

Good Thinking Good Product.

Ben M. Bruce making sense as usual.

Relocate to Namibia or GH pending when bubu lifts his economic siege on Nigeria.

Chubhie:
Relocate to Namibia or GH pending when bubu lifts his economic siege on Nigeria.

am sure u are a 12 year old kid........

meccuno:
am sure u are a 12 year old kid........

And you must be the octogenarian brain behind Buhari economic siege........

Who no go......

Bevista:
I have consistently maintained that the CBN's current FX Policy is beyond ridiculous.
---
It is obvious that the president is sentimentally attached to the value of the Naira, but I blame the CBN Governor more for the current situation. He doesn't look confident enough to man up to the president. If every oil exporting country (including Canada & Norway) has seen its currency value depreciate against the dollar due to decline in oil prices, then it is foolhardy for the CBN & the FG to grandstand.
---
It is complete nonsense to allow private citizens & businesses (by extension the whole economy) to suffer simply because of attachment to strong Naira value.
---
We will only know how bad things are when the NBS releases its economic numbers for Q4-2015.

How can he challenge a military dictator?

Give it to him for standing against the redesigning of Naira as a means to punish corrupt Nigerians when it would've also greatly affected businesses across the country considering the time limit attached to the project.

No Minister, Director or Chairperson under Buhari can outshine him without consequences. He wants to be seen, that's why Federal Executive Council was once called-off instead of allowing my Prof to chair the session.

LadyExcellency:
How can he challenge a military dictator?

Give it to him for standing against the redesigning of Naira as a means to punish corrupt Nigerians when it would've also greatly affected businesses across the country considering the time limit attached to the project.

No Minister, Director or Chairperson under Buhari can outshine him without consequences. He wants to be seen, that's why Federal Executive Council was once called-off instead of allowing my Prof to chair the session.

Not completely true. Even though the president was vehemently against removal of subsidies, Ibe Kachikwu prevailed on him with superior argument that has caused him to approve subsidy removal.

It is the job of the CBN Governor (as a professional) to prevail on the president with superior argument why the current FX policy might be counter-productive and end up having a NET negative effect on the economy.

Ben Bruce, don't be an Ignoramus. It was the banks that banned the use of ATM cards abroad, not CBN

Genius100:
Ben Bruce, don't be an Ignoramus. It was the banks that banned the use of ATM cards abroad, not CBN

are u sure u r in this country at all? The banks. Do u know how much d banks make from ur withdrawal? Why will dey stop it. It's a FG/CBN policy thinking they want to fight corruption but not knowing they r punishing Nigerians.

This is the result when you mistake CAPITAL FLIGHT for CORRUPTION.

With. Such mistake, the economy can never grow!

#bringbackNOI

in my honest opinion if yu wanna make dollar do well in the market.....cancel bureau the changii

nd let banks exclusively sell dollars... cos this bureau the changi peaple are economic sabeutouurs.....

This man makes so so much sense.

nice epistle from the twitter constituency, let us join hands together to make naija great

jpphilips:
Ignorant people, most of you should go and read about balance of trade before coming to sh!t ignorance everywhere, the balance of trade is tilting towards more outflow than inflow hence the need to reduce outflow.
Somethings are not common sense as expected, the average Nigerian mind is already overwhelmed, poor fellas!!

What do you produce that would guarantee inflow?

Nice Write-up. I concur

CBN has stated that it did not ban forex operations. Rather the banks have decided to restrict forex operations. And the reason is simply because of lack of foreign currency. Let me briefly explain how atm and online shopping works.

You, the zenith bank account holder with say a Mastercard, decide to purchase an item worth 100 dollars on amazon. You have it's equivalent in your account in naira but amazon requires the dollars. Now you use your naira card to pay and you smile away and not worry about what happens next. Here's what goes on that you probably don't know. Amazon contacts zenith bank for your 100 dollars. Zenith takes its naira equivalent from your account but pays amazon in dollars. Zenith uses your naira to buy up more dollars from CBN and the cycle continues.

The problem now is that with falling oil prices, our dollar reserves are low. CBN simply has few dollars so they can't sell easily to banks like they are used to. And with Nigeria having less things to export, the banks are now dollar strapped. CBN is actually trying to channel its dollar reserves to helping the manufacturing sector to see if we could boost exports in the near future. So little day to day activities with our atm cards have to suffer now in order for us to have a better tomorrow. Imagine what will Happen if CBN commits dollars to Dangote refinery and it's built fast, then we will be exporting petrol and earning more dollars.

While things are currently bad, Nigerians should be patient and understand that such restrictions are needed for now otherwise our currency value will crash so much that 1 dollar may become 1 thousand naira.

It already proved that most of our senators no get sense. Dude, go use PayPal or pioneer. And I almost though u said u read a lot!

Mtchewwwww!!!!

Besides, why u wan use ATM wen ubdey hear the news abt the restrictions? Abi u think say na PDP era where u get preferential treatment cos you're one stupid polithiefcian?

Oz4realsss:
What do you produce that would guarantee inflow?

then produce something!

What u guys dnt knw is that banning this tilt moat company to consider restrictions against your country.

Genius100:
Ben Bruce, don't be an Ignoramus. It was the banks that banned the use of ATM cards abroad, not CBN

It pains so much to sight these types of comments.. .if you don't understand something, it human to ask questions and who so ever has the answer shall gladly provide it for you.

The bank has no power of its own, all their activities from A-Z are being monitored by the CBN.. I mean ALL.. .

The bank would have been so glad to allow thing to be flowing left right and centre, but no CBN has to check their excesses to avoid wide range of abuse....

"Money they say is the root of all evil", so banking is a complete monitored environment and they can wake up and do anything without the approval of CBN and yes , the policy is from CBN and the banks are in tears for it too, more than their customers even...

Genius100:
Ben Bruce, don't be an Ignoramus. It was the banks that banned the use of ATM cards abroad, not CBN

When did banks start passing individual circulars that have such impacts on the economy without the CBN's directives?

Anyways, that's not the point here.

One thing we all must note is that the present administration (APC) didn't implement this policy out of selfish interest neither did they support it blindly.

Vividly, in quote, I remember General Buhari on TV (channels live interview) say that we Nigerians need to welcome and endure the policy, that it's a necessary measure which has to be put in place to check corruption and some others and that it'll be reversed soon.

Then is patience too much to exercise? Who says change is sudden? Why are we always impatient?

Like many others, I'll love wake up took morrow and see Nigeria develop like Dubai, or grow like the United States. But don't forget this only happen over time, and then that price were paid by some people for such achievement to be realistic.

Needless to say, I need not preach for so many. I am neither in support of the policy nor against it, but the truth still remain. Since we voted for this change, we should at least exercise patience, be optimistic and look forward to a good result with a little room for disappointment dangling in our hearts.

Even though the cloud is dark here in Nigeria, I choose to be positive

#ExpertzWorld #OneWorld

As long as it is not banned in naija nothing spoil

Nigerians are funny. You put a cattle-rearer in Aso Rock and expect Economic Transformation ? Hell No! I am intelligent enough to know what to expect. Cow Dung.

Genius100:
Ben Bruce, don't be an Ignoramus. It was the banks that banned the use of ATM cards abroad, not CBN

I get it.
as an ignoramus. U don't want Ben Bruce to join you.

his galleria a hit back to back. ignoramus ti take over.

jpphilips:
Ignorant people, most of you should go and read about balance of trade before coming to sh!t ignorance everywhere, the balance of trade is tilting towards more outflow than inflow hence the need to reduce outflow.
Somethings are not common sense as expected, the average Nigerian mind is already overwhelmed, poor fellas!!

yea in Ur underwhelmed mind. U reduce outflow by restricting people from spending thr money legitimately

May God bless this man for always speaking the truth...

ugojamali:
CBN has stated that it did not ban forex operations. Rather the banks have decided to restrict forex operations. And the reason is simply because of lack of foreign currency. Let me briefly explain how atm and online shopping works.

You, the zenith bank account holder with say a Mastercard, decide to purchase an item worth 100 dollars on amazon. You have it's equivalent in your account in naira but amazon requires the dollars. Now you use your naira card to pay and you smile away and not worry about what happens next. Here's what goes on that you probably don't know. Amazon contacts zenith bank for your 100 dollars. Zenith takes its naira equivalent from your account but pays amazon in dollars. Zenith uses your naira to buy up more dollars from CBN and the cycle continues.

The problem now is that with falling oil prices, our dollar reserves are low. CBN simply has few dollars so they can't sell easily to banks like they are used to. And with Nigeria having less things to export, the banks are now dollar strapped. CBN is actually trying to channel its dollar reserves to helping the manufacturing sector to see if we could boost exports in the near future. So little day to day activities with our atm cards have to suffer now in order for us to have a better tomorrow. Imagine what will Happen if CBN commits dollars to Dangote refinery and it's built fast, then we will be exporting petrol and earning more dollars.

While things are currently bad, Nigerians should be patient and understand that such restrictions are needed for now otherwise our currency value will crash so much that 1 dollar may become 1 thousand naira.

You stated fact on ground but ignore the real solution


Introduce True Federalism and you will see this problem die down

I can categorically say Ben Bruce got it all wrong, if he had been an advocate of Goodluck Jonathan's economic policies dt are based and promoted on local contents he wouldn't have been against d ban on ATM card abroad. How can we justify using the ATM card on buying several things we can produce and buy here dt will even get our youths engaged and employed. We can't continue to complain of serious unemployment and still gives foreign contents priority over over own. The objective of ATM card is to be use for (basic travel allowance) BTA dor travellers dt need to buy little little things.
100% for PMB on this, am totally in support.