Economist in the house, please is this a good or bad development?

Because what my small sense tells me is that it is a good development for the person receiving the money. Since you can change it how you want, you can as well change it at black market rate and get more Naira for your Dollar rather than the smaller bank rates.

However, I'd still prefer an economist or someone knowledgeable in this field to explain the effect of this CBN directive on the banks, and on the person receiving the money. Why did CBN decide to do it this way? Does this method not disfavor them? I need more insight please. Whoever can help me out, I'll appreciate

obiekunie2:


sorry sir, this explanation doesnt tarry.

it says - mobile services and bank accounts are temporary suspended.

if these avenues are suspended, how do you receive the fund??

how do you now send for cash pickup??



this country is ssoooo confusing and complicated!


PLS CAN SOMEBODY SHED MORE LIGHT ON THESE?

TIME TO GO GHANA, NIGER OR COTONOU AND OPEN AN ACCOUNT.


edit:

pls can you people just STOP! quoting me!

na question i ask for matter wey no clear for my eyes no be insult i insult!

anybody that owns a lot of forex will understand the fact that any government policy that have to do with forex will always pick your interest cause this our government no get insurance for anything concerning Forex!

I FULLY UNDERSTAND THE TOPIC SINCE THE THIRD POST! SO MAKE UNA LEAVE ME HAND ABEG!

OVER SABI WEY FULL NAIRALAND!

Before december 2020 they can send you USD from abroad into your NAIRA account.
now if they send you USD you either go and pick the USD and sell or put it in your DOLLAR DORM account

northvietnam:


Yeah cuz dollar will be readily available any where and anyhow ... but it’s good . Another foolish president will still come with another policy that will make dollar high ..

If dollar is low , things will be very cheap in the market , I mean very very cheap cars inclusive

This is what the policy was meant to achieve.
Dollar hoarders will soon organize # bring back our bussiness #.
This is what former finance Minister Anthony Ani was talking about.
IfMONEY TRANSFER FRAUD!!!!!

COLLUSION AMONG CBN,COMMERCIAL BANKS,WESTERN UNION,MONEYGRAM,ETC TO KILL THE NAIRA INSTALMENTALLY �!!!

By Chief Anthony Ani,FCA,Former Minister Of Finance.

"A MATTER OF NATIONAL EMERGENCY DEMANDING OUR DEAR PRESIDENT BUHARI'S URGENT ACTION!

"RE: $BILLION DIASPORA REMITTANCES: WHERE ARE THE DOLLARS?"

The above question was posed in an article in The PUNCH newspaper edition of September 9, 2019, by columnist Henry Boyo.

I have been a daily reader of The PUNCH for the past 10 years and I have not yet, read any comments from anyone on this question.

There is a need to discuss this issue, as it appears that there is massive foreign exchange laundering going on in our banks.

As the architect of the Diaspora remittances in 1996, I am naturally concerned at the abuses disclosed by Boyo.

When in 1995, we at the Ministry of Finance reviewed the country’s sources of foreign revenues, we found out that nothing was coming in from Nigerians in the Diaspora, whereas India and Jamaica were living on foreign exchange from their citizens abroad.

When I enquired why Western Union and MoneyGram could not receive money from Nigerians abroad, I was told that it was due to our tax laws.

As a Chartered Accountant student in 1962, I studied Comparative Commonwealth Taxation in Nigeria, Jamaica and the UK, and I found out that the tax laws of these countries had the same wordings on imposition of tax (“tax is imposed on income accruing in, derived from or brought into”).

The question then to me was why income “brought into” India was not taxed in India? On enquiry, I found that India had modified its tax laws to accommodate its citizens living abroad who wanted to send money in foreign exchange to India.

In 1996, I had proposed (and it was accepted by the Federal Executive Council) in a new law, regarding Nigerians repatriating remuneration from abroad, Nigerians repatriating dividends, royalties, fees, commissions from foreign countries receipts by authors, sportsmen/women, musicians, play writers, artist, etc.

Such income repatriated into Nigeria in foreign currency was 100 per cent exempted from tax, provided the foreign currency was repatriated through a domiciliary account with a Nigerian bank!

With the promulgation of this law, First Bank Nigeria Ltd brought in Western Union in August 1996 while the USA(UBA) brought in MoneyGram a few weeks later.

In 1996, Nigerians abroad repatriated about $4.5bn (about 50 per cent of our gross revenue from oil) and we ensured that these amounts were brought into Nigeria, intact, in foreign exchange.

The receipts increased exponentially in 1997 and 1998 and we also made sure that they were received in Nigeria, in foreign currency.

The receipts helped to stabilise our exchange rate mechanism at N82 to a dollar, throughout my tenure as the Minister of Finance, to the extent that the naira was internally convertible currency.

Some years ago, on my visit to London, I went to Western Union office, at Marble Arch, to test by remitting £500 to my son in Nigeria.

I first had to convert the money to dollars and to my surprise, Western Union gave me a quote in naira to be claimed by my son.

I refused their naira equivalent and insisted that my son must be paid in dollars.

It was obvious to me that there was an arrangement between our Nigerian banks and Western Union/MoneyGram, whereby the former pays from their excess naira liquidity while the later retains the dollars abroad.

In other words, the dollar remittance is retained abroad and is laundered by the Nigerian banks. This is definitely against the law which provide that all remittances must be brought into Nigeria in foreign currency via domiciliary account.

If by chance, as in my case, the dollar is remitted into Nigeria, the Central Bank of Nigeria on August 14, 2014, introduced the Outward Money Transfer Service and authorised the same MoneyGram and Western Union to re-export, in tranches of $5,000 per transaction, to Nigerians abroad, on payment of the naira equivalent at the CBN rate of exchange.

Thus, Nigeria is the only country in the world re-exporting its remittances.

It is relevant to note that the naira is not a convertible currency but remittances which are meant to stabilise our exchange rates are re-exported!

There is something wrong at our Central Bank.

It could be that we have imported the mentality of commercial banking into the CBN. We now need real central bankers to govern our Central Bank.

We have central bankers amongst those in the CBN, and we also have central bankers amongst the members of the Nigerian Economic Society or, alternatively, indeed, we can even go outside Nigeria to employ central bankers.

The fact is that the Diaspora remittances are not retained in Nigeria and there is a collaboration between the CBN, Nigerian banks and Western Union/MoneyGram; in such an event, government must investigate the infraction, punish the money launders, and recover all past Diaspora remittances retained abroad!
Copied!

The Outbound Money Transfer Services must be stopped and all our remittances retained for naira stability and the nation’s development."
October 8th,2019.

Etubom Anthony Ani is a former Minister of Finance,1993-1998.

*[Please share in all your social media platforms or tag until it goes viral for Urgent Action by President Buhari.We have endured too much fraudulent bewitchment as a People and Nation.]*
Caveat emptor: Post as copied.

Atk1nson:
so what happens to the like of worldremit that directly credit a/c in naira?

, pls fp, we need more light on this

luckily they have a new feature, they send to your USD account if you have any

Uniquisite:


For real?

So much dollar currency circulation in Nigeria will crash the value against Naira? Lol

That means Fraud, Depleted foreign reserve, Corruption, Import dependency, lack of foreign investment, inflation all play a little role

And imported goods will be cheap

And a coward like you can't engage in sensible discourse.except to throw insults at your mother's age mate. Idiotic dunce like you. Now run off in your diapers kid!

loswhite:
The internet can make a dunce look like a prof....smh

golddust6000:
it means that the money is too huge to transfer direct to your account, all you have to do is go to your bank branch office to fill form and pay charges before the money will be released.

Charges again? For my own money

Wahala for person wey still dey do international cash transfer ooo

Wetin do Crypro currency...

We've been having commercial bankers as our central bank chiefs. They work for their banks e.g Emefiele Zenith bank.

Since most of our youths are into yahooyahoo, their remittances would go a long way in ensuring a strong Naira. My people say 'Omo buruku l'ojo tie'. A bad child has his good days.

Yusuf7777:
The directive is to your advantage. It means you can only receive the USD in cash or request a transfer to your domiciliary account if u have one. The reason is to stop the company from paying you in Naira at some unfavourable rate.
So the beneficiary should should go the branch and get USD cash to request transfer to his dom account.

sorry for the ignorance, whose account will the money be sent to if the receiver doesnt have a domicilliary account. and is this for dollars alone or all currencies

I still sent money today in naira but not western union or ria but with smallworld with rate of 580.

Ouchbabe:

Please what is the maximum amount someone abroad can send to you here in Nigeria according to CBN?

The maximum amount sent per transaction depends on the money transfer services, they have their limits.

jojofola:
Nawa.

Every policy from this Cabal Government is Anti People.
So worldremit and co can no longer ease our stress?

By 2023, we will have a thousand Madueke cases.

now bad family members or friends will know when you want to credit your account as they will now pick the dollars for you

now stories want to start again

i change dollar at N400 when they actually changed it N475

so if you sent home $1,000, an ungrateful relative just milked you off N75,000 without saying thank you


worse case scenario they can tell you armed robbers stole the money from them on their way from the bank to the mallam store

this is crazy - and Buhari has put the interest of his brothers selling forex ahead of us who work hard to send the money home to do projects


it’s story time again from friends and family in naija - as for me- i will just keep my money, i don’t have time for bs

Uniquisite:


TF

You are absolutely wrong to think CBN is doing this to favor those receiving money from abroad

The CBN is trying to cut the IMTOs naira profit down and hence move the gain to the BDCs. This in no time will ensure a saturation of dollar with the bureau de change and thereby forcing the exchange rates down. But the gain will only be temporary as the festive period is here.

What happens when demand picks up after the yuletide season is over? Importers will definitely search for more dollars on the street and drive demand again. Will the CBN have the reserve to defend the demand?

Akainzo:

That anyone can decide to bet against the Naira by purchasing USD and keeping in the bank, which adds no value to the economy, is the biggest travesty of the economy I have seen.

You couldn't have said it any better. Tens of billions of dollars lie fallow in domiciliary accounts because that seems the safest bet for any salary earning Nigerian.

bigtt76:
Exactly but a bad policy.

1. It's recognizing the black market and legit helping to channel forex there.

2. The black market would get saturated at a point in time because no business man or woman would go there to source forex for business and the black marketers would not sell to the banks at the CBN rate

3. Naira in circulation would be mopped up at a point in time resulting in the dollarization of the economy (no one would want tk be paid in naira)

4. At the end of the day, beneficiaries would have no option but to exchange with the banks or hoard in their domiciliary accounts.

SENDING MONEY TO NIGERIA MAKES NO SENSE, GUYS STOP IT, ENJOY YOUR MONEY WHEREVER YOU ARE

EarlyCareer:
English is hard sha...

Bigtt76 has explained already.

- All money sent in dollars will be received in dollars.

- Receivers have to go to the bank to pick up the money which will be paid in dollars to them.

- Money sent will no longer be paid directly into receiver's bank account or wallet. This is temporary.

- this means that once dollars is picked up, you can now change to naira as you wish.

My advice is that people invite their aboki to the bank to ease the changing of the money ...otherwise bank will reduce the worth ...I know say black market is always higher ....don't attempt to go with your dollars cos criminals are not happy this time . N.a. bank go even tell them how much u collected from them. Don't ask me how I know ...I once withdrew money from a bank ...a reputable one for that matter ...immediately I headed home,and as I was opening my door to enter ...behold 6 men gang was already knocking at my door ...I became afraid ....I asked through the window whom they are and they said police ....I was shocked ...I opened the door and the entered and told me they where on patrol so the just wanna greet me...I was surprise with this type of greeting when I just came back from bank ...I understand they followed me from bank ....long story short I gave them drink money and immediately they left I had to go sleep in my sisters place that day ...the next day I travelled for my business...we need to be careful this time

binghammer:

You couldn't have said it any better. Tens of billions of dollars lie fallow in domiciliary accounts because that seems the safest bet for any salary earning Nigerian.

But then when one decides to withdraw dollars he/she has been saving in Domiciliary the charges by Bank would cut a big percentage of the money. I've dollar account but I prefer this cash pickup with zero charges. I don't know why anyone would decide to save foreign currency and enrich the banks upon collection?

bigtt76:
Exactly but a bad policy.

1. It's recognizing the black market and legit helping to channel forex there.

2. The black market would get saturated at a point in time because no business man or woman would go there to source forex for business and the black marketers would not sell to the banks at the CBN rate

3. Naira in circulation would be mopped up at a point in time resulting in the dollarization of the economy (no one would want tk be paid in naira)

4. At the end of the day, beneficiaries would have no option but to exchange with the banks or hoard in their domiciliary accounts.

The Nigerian economy has been dollarized for many years. Even our inflation is imported. No economy can import so much of its needs and claim currency sovereignty. That ship has sailed.

This is a good policy.

What happens to Euro and pounds?

We are not yet dollarized. When we end up being dollarized, people would be forced to pay rent or other large payments in dollars.

Liberia and Zimbabwe are two countries with dollarized economy because their local currency is worth less and not portable.

BreconHills:


The Nigerian economy has been dollarized for many years. Even our inflation is imported. No economy can import so much of its needs and claim currency sovereignty. That ship has sailed.

This is a good policy.

dominion001:
What happens to Euro and pounds?

Abitrage is still ongoing, you get dollar's equivalent to the poor naira rates as before.

People haven't spotted this yet

Tats:
This is not good, especially at this time of the year. Some of us have naira accounts in Nigeria that we transfer money to and then distribute to others from that account. Anyway, Azimo is still sending in naira, albeit at a much lower rate than before.

Exactly, but it seems like BossMoney is still paying in naira. #388 to 1$

the nation foreign reserves is dwindling and oil sales isnt going as expected , there is recession worldwide and the nation has been borrowing hugely to finance this year budget and expenditure , cbn doesn't have the fx to sustain the nation . just wait and see what will happen in february

OasisT:
BDC and banks source their dollars from CBN and it won't be a problem if the players are sincere about the policy

paste007:
do i need to create a domiciliary account to pick the money up?

.
No,all you need is to fill a form and provide ur bvn

rusher14:


If the receiver has a domicilary account, he/she can receive funds.

Yes

bigtt76:
We are not yet dollarized. When we end up being dollarized, people would be forced to pay rent or other large payments in dollars.

Liberia and Zimbabwe are two countries with dollarized economy because their local currency is worth less and not portable.

The countries you chose as an example do not make a connection with Nigeria. One was war torn and the other pursued a Venezuelan socialist economy. Nigeria does not fit any of these shoes. Nigeria fx challenges are systematic not availability dimensioned. Nigeria has over $36bn in reserves and 21.64 tons of Gold not to talk of US Treasury bill holdings. Lets not even talk of the billions of USD hidden in those buildings and underground bunkers.

Why the new CBN regulations.

Nigerias diaspora remit over $25bn per annum beating our crude oil receipts hands down. The reason for these new regulations is to recognize that human capital is now Nigerias main fx earner and its flow needs to be freed up from bottlenecks.

When we talk about a dollarized economy, we are talking of the dollar component of our consumables. You can price in Naira with an inbuilt dollar scale. You don't have to price your goods in USD to run a dollarized economy.

Hmmm

Speaking of dom account, please help me.
I need a current account holder, not salary account or doms account holder to sign my referral form to open a access bank Dom. I am exhausted trying to get a referral. I live in Ibadan, UCH Bodija environments. My number is 0.8.1.8.0.9.6.6.0.6.1

calcal:


SENDING MONEY TO NIGERIA MAKES NO SENSE, GUYS STOP IT, ENJOY YOUR MONEY WHEREVER YOU ARE

what of family in naija?