NewStats: 3,259,573 , 8,170,540 topics. Date: Sunday, 25 May 2025 at 03:52 PM 4xs26

I'll be updating this thread for the purpose of sharing ideas on Federal Government Policies and it's effect on us.

You can always scroll to the last page for the most recent discussion

Today's discussion:

Nigerian banks have begun full implementation of the Central Bank of Nigeria's revised guidelines on International money transfer operations in the country. The CBN released revised guidelines for the operations of International money transfer operators (IMTOs) and instructed banks to begin paying dollars and other foreign currency payouts from abroad in naira to boost forex supply and starve the black market traders.
https://nairaland.unblockandhide.com/7995248/banks-pay-customers-money-sent

What does this mean?

It simply means every dollar you have in your domiciliary is only imaginary. It is only dollar written on paper.
When you want to collect that dollar, you will be given the equivalent at bank rate.

This means more dollars for the bank and less Dollar for the people.

The people need as much dollar as the bank does. In fact, the bank needs you to make more dollars so you can bring it to them.
But now, only the bank has dollars and the people don’t.

How is this a problem?

Rather than the banks, it’s the “business people “ that need dollars the most for international business transactions.

Note that the reason Nigeria remains the biggest economy in Africa and one of the largest in the world is basically due to fertile international business transactions.
Dollar is the most used currency for international transactions, hence the constant need for it.

You want to argue about Russia and China but we will come to that.

Cont’d: But banks won’t give “business people ” dollars anymore. Who do they turn to so as to remain in business.

Scenario 1:
Mr Emeka needs to pay $20,000 for spare parts he ordered from China. Mr. Jinxing who is the supplier says he can never accept Naira as a mode of payment because he can't change it easily in China

Mr Emeka then calls Alhaji Subairu who ‘used’ to be a Bureau D change agent in Wuse market to buy dollar notes that he will give Mr. Jinxing

Alhaji subairu didn’t go to shop today because the Government is about to put him out of business. He tells Mr Emeka he would call him back in 30minutes.
Alhaji Subairu actually still have $30,000 cash that he had not deposited in the bank before Government came with their caterpillar to demolish the dollar black market business.

Alhaji Subairu calls Mr Emeka back and tells him he doesn’t have much dollar notes left but because they’ve been good friends for over 20 years he says “I know a dollar to naira is #1500 in the bank but I’ll sell to you my good friend. However, just so I don’t run out of business completely, I’ll sell to you at a rate of #2000 naira to $1 dollar”
Mr Emeka needs the dollar notes so desperately so he agrees and as a business man, he knows he will make his money back in Ladipo market. It’s the consumer buyer that will suffer it.

This means the Naira has been further devalued.
Because from the initial #1500 to $1 , it is now sold at #2000 to $1 due to artificial scarcity.

Scenario 2:
I, Investor officialgarri and superstar Airforce1 just got paid $100k and $50k cash respectively for a business transaction and a music show in Las Vegas. Doings ..
We were both somewhere in Abuja and I asked Airforce1 if he’s mad or about to run mad. I’m asking him because Airforce1 said he wants to go and deposit his $50k in his Nigerian USD domiciliary .
I explained to Airforce1 that when he wants to take back his money from the bank, the bank will pay him only the Naira equivalent at #1500 to a dollar.
Airforce1 says nothing is wrong with that , it’s still my money.
But because I’m more exposed and business oriented, I then proposed to Airforce1 that I’d buy his dollars at the rate of #1600 to a dollar.
He’s so happy and agrees.
I took the cash to Alhaji Subairu in Wuse Market and sells to him at the rate of #1900 to a dollar.

This means P2P transaction and we do not need the bank for dollar transactions anymore. The banks begin to starve

Scenario 3:
(In this scenario, we will assume banks now allow the use of our ATM card to buy things online using USD)

Lalasticlala (not the Nairaland ) sees a computer he likes on AliExpress and wishes to pay with his Nigerian bank card. In one click , he was debited in just the Naira equivalent. In two weeks, his laptop trully arrived. He was happy with his bank, AliExpress and Nigeria.

But what he didn’t realize is that Seun(not Nairaland founder) who is a “working boy” has an IQ of 165
In fact Seun re that he made so much money from dollar arbitrage till late 2021 when the CBN said “enough is enough”

Seun just discovered that like before, foreign fintechs are now accepting our cards again and they charge at the official rate of #1500
So Seun launches Omo-ogbon fintech app and begins to buy dollars at the official rate.

“But why are you buying dollars ?” Lalasticlala asked Seun.

Seun said “Dey play. Shay it’s Buhari’s anti-money laundering policy that made you see me finish “
So Seun began to use his digital dollars in his Omo-ogbon App to buy USDT (crypto version of dollars which is usually sold at around the prevailing black market rate)
So in his repeat wash and rinse procedure, he has dragged Buhari’s legacy in the mud

Russian Scenario:
Russia is at war and despite the high sanctions from major countries, their Rubble is strong because they transact in Rubbles instead of the dollar.

Russia is at war and they have a big ally which is a major market in the world —China, so they shifted their market.
But let’s leave china out, Russia gives out gas to Europe (UK, , e.t.c) or Europe will starve or spend double if not more to get gas from another continent

Nigeria in this instance is a member of OPEC which means we can’t really determine the currency of exchange on our own.
The OPEC abducted the US dollars as it’s means of exchange in the 1971 and 1973 agreement, hence, PETRODOLLARS

Don’t forget that we refine our oil overseas as well.
America’s leverage against the world is the dollar and President Vlir Putin further confirmed this in his February 6 Tucker Carlson interview.
Therefore, transacting Oil which is our major source of income outside the International Market currency is almost impossible

So why did the FG through the banks implement this policy?

Your banks told FG that 80% of Nairalanders have at least $20k each in their doms. Rich rich people
So they are hoarding the money that should be out there in the market.

Note that Dollars asides market forces can be affected by News either positively or negatively.

I saw a nairalander’s comment that said he was on a queue in the bank to collect his money.

Hence,
Panic withdrawals. Everyone will panic then lots of people will go to the bank to collect their change before the Government begins to give them #100 to one dollar.
This panic withdrawals mean more money for the FG. Lagos sense.
Gradually and without announcement, the policy will be reversed.

Are the banks happy with this policy?

Yes for Now and No later

We are in a difficult situation and the country is in a dire need of production. Production leads to export. Export leads to more dollars. More dollars mean it will lose its value gradually and this inturn leads to Naira appreciation.
Oil
Agriculture
Tech e.t.c are key to this development


Rest in Peace Herbert Wigwe


Modified:

1:17pm
Now the FG/CBN are back on track

The CBN has decided to continue to supply the BDC dollars , however at what seemed to be a pegged rate.

It would have been wrong to starve them completely.

This Government for a fact is showing workings...not Cho Cho Cho

If I want to buy goods from Alibaba or any oversee manufacturer, I will transfer the dollars in my domiciliary to the supplier. Many people won't withdraw dollar cash as per se. It is for business.

MadamExcellency:
If I want to buy goods from Alibaba or any oversee manufacturer, I will transfer the dollars in my domiciliary to the supplier. Many people won't withdraw dollar cash as per se. It is for business.

While MadamExcellency keeps money in her dom basically for business transactions, HisExcellency gets paid his wage from Fiverr and Upwork and that's what he withdraws to feed his family.

Basically, money in dom s are not just there for business. It could be savings as well

Officialgarri:

While MadamExcellency keeps money in her dom basically for business transactions, HisExcellency gets paid his wage from Fiverr and Upwork and that's what he withdraws to feed his family.

Basically, money in dom s are not just there for business. It could be savings as well

Who told you I don't do upwork?

MadamExcellency:


Who told you I don't do upwork?

I'm only giving a scenario. You should get the main point already

Nice analysis...

I am my own Alhaji Subairu.

My money dey under my mattress.

My price or no deal.

Igbo and their beer parlour analysis 😀🤣


So we should allow some people to hold Dollar im their while the country is suffering for the currency?

If you lack comprehensive knowledge of the subject matter why no ask people around you to analyze it for you.?


The policy is to annihilate people starching the dollar im their while others suffers for it. Then is frown at people trading dollar on the street.

Why would some people be selling dollar on the street to make profit bcs they have connections while the economy suffer for the same dollars?

No politician will be able to withdraw dollars and starch it in their house any longer

If you are not happy about it go to court

Officialgarri:


What does this mean?

It simply means every dollar you have in your domiciliary is only imaginary. It is only dollar written on paper.
When you want to collect that dollar, you will be given the equivalent at bank rate.

This means more dollars for the bank and less Dollar for the people.

The people need as much dollar as the bank does. In fact, the bank needs you to make more dollars so you can bring it to them.
But now, only the bank has dollars and the people don’t.

How is this a problem?

Rather than the banks, it’s the “business people “ that need dollars the most for international business transactions.

Note that the reason Nigeria remains the biggest economy in Africa and one of the largest in the world is basically due to fertile international business transactions.
Dollar is the most used currency for international transactions, hence the constant need for it.

You want to argue about Russia and China but we will come to that.

Cont’d: But banks won’t give “business people ” dollars anymore. Who do they turn to so as to remain in business.

Scenario 1:
Mr Emeka needs to pay $20,000 for spare parts he ordered from China. Mr. Jinxing who is the supplier says he can never accept Naira as a mode of payment because he can't change it easily in China

Mr Emeka then calls Alhaji Subairu who ‘used’ to be a Bureau D change agent in Wuse market to buy dollar notes that he will give Mr. Jinxing

Alhaji subairu didn’t go to shop today because the Government is about to put him out of business. He tells Mr Emeka he would call him back in 30minutes.
Alhaji Subairu actually still have $30,000 cash that he had not deposited in the bank before Government came with their caterpillar to demolish the dollar black market business.

Alhaji Subairu calls Mr Emeka back and tells him he doesn’t have much dollar notes left but because they’ve been good friends for over 20 years he says “I know a dollar to naira is #1500 in the bank but I’ll sell to you my good friend. However, just so I don’t run out of business completely, I’ll sell to you at a rate of #2000 naira to $1 dollar”
Mr Emeka needs the dollar notes so desperately so he agrees and as a business man, he knows he will make his money back in Ladipo market. It’s the consumer buyer that will suffer it.

This means the Naira has been further devalued.
Because from the initial #1500 to $1 , it is now sold at #2000 to $1 due to artificial scarcity.

Scenario 2:
I, Investor officialgarri and superstar Airforce1 just got paid $100k and $50k cash respectively for a business transaction and a music show in Las Vegas. Doings ..
We were both somewhere in Abuja and I asked Airforce1 if he’s mad or about to run mad. I’m asking him because Airforce1 said he wants to go and deposit his $50k in his Nigerian USD domiciliary .
I explained to Airforce1 that when he wants to take back his money from the bank, the bank will pay him only the Naira equivalent at #1500 to a dollar.
Airforce1 says nothing is wrong with that , it’s still my money.
But because I’m more exposed and business oriented, I then proposed to Airforce1 that I’d buy his dollars at the rate of #1600 to a dollar.
He’s so happy and agrees.
I took the cash to Alhaji Subairu in Wuse Market and sells to him at the rate of #1900 to a dollar.

This means P2P transaction and we do not need the bank for dollar transactions anymore. The banks begin to starve

Scenario 3:
(In this scenario, we will assume banks now allow the use of our ATM card to buy things online using USD)

Lalasticlala (not the Nairaland ) sees a computer he likes on AliExpress and wishes to pay with his Nigerian bank card. In one click , he was debited in just the Naira equivalent. In two weeks, his laptop trully arrived. He was happy with his bank, AliExpress and Nigeria.

But what he didn’t realize is that Seun(not Nairaland founder) who is a “working boy” has an IQ of 165
In fact Seun re that he made so much money from dollar arbitrage till late 2021 when the CBN said “enough is enough”

Seun just discovered that like before, foreign fintechs are now accepting our cards again and they charge at the official rate of #1500
So Seun launches Omo-ogbon fintech app and begins to buy dollars at the official rate.

“But why are you buying dollars ?” Lalasticlala asked Seun.

Seun said “Dey play. Shay it’s Buhari’s anti-money laundering policy that made you see me finish “
So Seun began to use his digital dollars in his Omo-ogbon App to buy USDT (crypto version of dollars which is usually sold at around the prevailing black market rate)
So in his repeat wash and rinse procedure, he has dragged Buhari’s legacy in the mud

Russian Scenario:
Russia is at war and despite the high sanctions from major countries, their Rubble is strong because they transact in Rubbles instead of the dollar.

Russia is at war and they have a big ally which is a major market in the world —China, so they shifted their market.
But let’s leave china out, Russia gives out gas to Europe (UK, , e.t.c) or Europe will starve or spend double if not more to get gas from another continent

Nigeria in this instance is a member of OPEC which means we can’t really determine the currency of exchange on our own.
The OPEC abducted the US dollars as it’s means of exchange in the 1971 and 1973 agreement, hence, PETRODOLLARS

Don’t forget that we refine our oil overseas as well.
America’s leverage against the world is the dollar and President Vlir Putin further confirmed this in his February 6 Tucker Carlson interview.
Therefore, transacting Oil which is our major source of income outside the International Market currency is almost impossible

So why did the FG through the banks implement this policy?

Your banks told FG that 80% of Nairalanders have at least $20k each in their doms. Rich rich people
So they are hoarding the money that should be out there in the market.

Note that Dollars asides market forces can be affected by News either positively or negatively.

I saw a nairalander’s comment that said he was on a queue in the bank to collect his money.

Hence,
Panic withdrawals. Everyone will panic then lots of people will go to the bank to collect their change before the Government begins to give them #100 to one dollar.
This panic withdrawals mean more money for the FG. Lagos sense.
Gradually and without announcement, the policy will be reversed.

Are the banks happy with this policy?

Yes for Now and No later

We are in a difficult situation and the country is in a dire need of production. Production leads to export. Export leads to more dollars. More dollars mean it will lose its value gradually and this inturns lead to Naira appreciation.
Oil
Agriculture
Tech e.t.c are key to this development


Rest in Peace Herbert Wigwe

Your last paragraph is lies or crap. What is republic of Togo, Benin , Cameron and Niger republic producing ?. How come their currency CFA is stronger than ours Please stop analysing what you don't understand.

Local production will assist the purchasing power of locals . Exported goods will not increase dollar supply to Nigeria because all businesses men exporting already have s in those countries and readily keep their dollars in their foreign overseas and not even in local banks.
Our politicians with help of Road contractors and funny contractors also help ship out state allocations in dollars. Federal government and MDA are doing same.
The Naira is falling due to high demand from corruption and not business transactions.
The Naira should be fixed at N80 to $ and government should tighten both import funding and unnecessary or frivolous dollar requests.

The question should be why do you need cash withdrawal for the USD? I have a Dom linked to my PayPal, payment will just be deducted for whatever service or product I need, still carried out a transaction last Thursday.

If I need to convert to naira, bank will change it at the prevailing market rate.

Realdeals:
The question should be why do you need cash withdrawal for the USD? I have a Dom linked to my PayPal, payment will just be deducted for whatever service or product I need, still carried out a transaction last Thursday.

If I need to convert to naira, bank will change it at the prevailing market rate.

From the basic analysis and scenario, you still ask what dollar notes are needed for

MadamExcellency:
If I want to buy goods from Alibaba or any oversee manufacturer, I will transfer the dollars in my domiciliary to the supplier. Many people won't withdraw dollar cash as per se. It is for business.

I thought the policy won't affect people with domiciliary s

Afospecialk:
Igbo and their beer parlour analysis 😀🤣


So we should allow some people to hold Dollar im their while the country is suffering for the currency?

If you lack comprehensive knowledge of the subject matter why no ask people around you to analyze it for you.?


The policy is to annihilate people starching the dollar im their while others suffers for it. Then is frown at people trading dollar on the street.

Why would some people be selling dollar on the street to make profit bcs they have connections while the economy suffer for the same dollars?

No politician will be able to withdraw dollars and starch it in their house any longer

If you are not happy about it go to court

You know the title of this thread alone is enough to understand the purpose of this thread .

No be everything be fight. You can counter my argument with your own facts and I can agree or disagree.

I'm not Igbo by the way, however, it's not a crime to be one

hmm

BANKS AND BLACK MARKET OPERATIONS ARE LIKE THE TEETH AND THE TONGUE

Officialgarri:

Damn bruh!! I like your analogy. Even the most ignorant person will understand it

Some people don't read.

I don't totally agree with your analysis.
If I have dollars in my dom , I can use it to buy whatever I want from China or any other Country outside Nigeria.You don't really need physical dollar in Nigeria.

lwisee:
I don't totally agree with your analysis.
If I have dollars in my dom , I can use it to buy whatever I want from China or any other Country outside Nigeria.You don't really need physical dollar in Nigeria.

Dollar was 1480 when I made this post . Today dollar is 1537

The analysis is straightforward actually. It's not rocket science

Because you don't need physical dollar doesn't mean Mr Emeka doesn't need it

Basically we are in trouble



Before this tinubu utopia economic policies will germinate any good , 1 dollar = #7,000



Will there still be ronu

Realdeals:
The question should be why do you need cash withdrawal for the USD? I have a Dom linked to my PayPal, payment will just be deducted for whatever service or product I need, still carried out a transaction last Thursday.

If I need to convert to naira, bank will change it at the prevailing market rate.

go through the OP post again

Dollar is headed for 7k naira per dollar

Again it's simple mathematics

The CBN doesn't produce Dollar and cannot target the supply of dollars

To get the exchange rate correct they need to do two things

1) mop up naira liquidity,the 28% inflation rate is a pointer to what interest rate, CRR rate and what the FG bonds should be trading at. FGN is still issuing bonds at 7% while running at 28% inflation, an insult to peoples intelligence and a disgrace to send emails with such a fraud

2) stop printing naira under any guise, ways and means etc

This indirectly implies reducing FGN expenditure by over 80%

Stop impoverishing people

APC is an evil party and Thiefinibiu is a bit thief ekperima

Officialgarri:

Dollar was 1480 when I made this post . Today dollar is 1537

The analysis is straightforward actually. It's not rocket science

Because you don't need physical dollar doesn't mean Mr Emeka doesn't need it

Mr Emeka needs physical Dollar in Nigeria to do what?

How are you able to achieve this please?

Realdeals:
The question should be why do you need cash withdrawal for the USD? I have a Dom linked to my PayPal, payment will just be deducted for whatever service or product I need, still carried out a transaction last Thursday.

If I need to convert to naira, bank will change it at the prevailing market rate.

The guy argument get kleg... He does not seem to know that Mr Emeka needs to do an electronic transfer to whoever he wants to pay and not be asking for cash.

He even also said when they pay him for a show in Las Vegas, he will now bring the cash to Nigeria. Who will pay him for a show in the US with raw cash?

The analysis get k-leg

lwisee:


Mr Emeka needs physical Dollar in Nigeria to do what?

Now the FG/CBN are back on track

The CBN has decided to continue to supply the BDC dollars , however at what seemed to be a pegged rate.

It would have been wrong to starve them completely.

This Government might for a fact be showing workings...
Let's watch and see ...

Cost of PMS

There was a trending news about Oando acquiring Agip and Atiku Abubakar's allegations.

Don't pay attention to those things....
Afterall, these oil companies are the saboteurs who will make it impossible to refine our own oil maximally till date.

The problem that concerns us is the big fight between two classes;


Oligarchy Vs Monopoly

And we will see the that both classes are what can save us in this country.

Before I explain the above; A major problem we have is the cost of petroleum which in affects the price of almost everything.

Oligarchy: as we are experiencing is that a certain political class will fight to get into power not because they want to help the people but because they need to be in power to protect and expand their family businesses, in other words, expand their empire.

It's a common knowledge that the Tinubu dynasty are a big investor in the oil industry.
Oando, Malta blending plant e.t.c

Summarily, the business of the Oligarch is to import oil and enjoy the benefits of "subsidy"

Monopoly
The man has come out to cry on our TV screens. He has been granting interviews to make Nigerians aware that this incumbent Government has come to destroy what Buhari's government was going to give him for free i.e refining and sales of PMS to Nigerians.

It's a common knowledge that Buhari tried to hasten Dangote refinery. Although they achieved success with Diesel (which in turn forced down the price of diesel), they failed with PMS.

Summarily, the monopolist needs to be in business no matter what it takes. He can't afford to disappoint his co-investors

Here's the problem;

Oligarchs are in power to protect their businesses, however, this is at the detriment of the common people. Because it means we will have to keep importing fuel at a higher cost.

Monopolists will be the major oil dealer in Nigeria and take "subsidy food" off the table of the Oligarchs.

However, just like in the case of cement for example, Mr Dangote can receive a call from Femi OteDollar and several investors that they need quick return on their investments. Mr Dangote will then decide to sell a litre of fuel at #2000 because we have no choice but to buy from him.

Officialgarri's Position:
In this state of hardship, The monopolist has proven to be a better choice since he once forced down the price of diesel.
Since the FG said there will be 90% decrease on domestic fuel, then hopefully we can get cheap fuel.

What the Oligarchs can do as well is to go back to the drawing board and fight the Monopolists by introducing domestic competitions

In either case, it's a win for the people

What a time to be alive

Let the FG just come out direct and tell us they want to "remove subsidy". Yes, the same subsidy they removed last year

Nice one.

Officialgarri:
What a time to be alive

Let the FG just come out direct and tell us they want to "remove subsidy". Yes, the same subsidy they removed last year

Like I said, the memo was a tactic to increase fuel price.
It was so visible. . This government no go kill person

Now everyone is talking like an ''old-taker". .. like "" I when I used to fill my tank with 12k... Oh , good old days". Good old days is 2021 o

Expect price to go up anytime again

Ajeh do you really sell garri?

WhizdomXX:
Ajeh do you really sell garri?

Ajeh, if you ask for 100 bags of Garri now, I go load and supply you straight up ...

Officialgarri:

Ajeh, if you ask for 100 bags of Garri now, I go load and supply you straight up ...

Lol. I like your analysis.