Dear Erica, The CBN Is Coming For Your Dollars

September 8, 2020

Citizen is a column that explains how the government’s policies fucks citizens and how we can unfuck ourselves.


Imagine my surprise when I opened Twitter on Sunday night, only to realise that fans of Erica were donating money to a GoFundMe account opened on her behalf after she was disqualified from the Big Brother Naija show. 

And they were not sending this woman money in naira. They were doing it in – wait for it – DOLLARS. I can’t lie, I was shook.

But the more I think about this the more I want to say to Erica’s fans: “Be careful, the CBN is looking for dollars”.

Roses are red, CBN wll find the dollars you kept under your bed

On Friday last week, the CBN placed a Post No Debit (PND) order on 48 companies, on the allegation that they transfer foreign exchange outside of the country, in a way that hurts Nigeria’s economy.

The order largely affected gaming companies, and it is alleged that over $48 million dollars were taken out of Nigeria into foreign accounts – a move the CBN maintains does not help the FX scarcity situation in Nigeria.

Meanwhile, What Is A ‘Post No Debit Order’?

Note that A ‘Post No Debit‘ is an order  that blocks all money debit transactions from taking place on a bank account, and this recent order placed on these companies is further proof that the Central Bank is taking the foreign exchange issue in Nigeria extremely seriously.

Meanwhile, this dollar directive is not isolated and the CBN has been doing all there is to streamline dollar processes in the country. Many Nigerian commercial banks now cap their international dollar outflow for customers at $100 daily.

But why is the CBN so concerned about dollars?

For much of 2020, FX instability has remained a major problem for the Nigerian economy. The supply of dollars has been on a decline for months due to low oil prices and the absence of foreign capital inflow into the country.

Because the sale of crude oil is denominated in dollars and oil sales accounts for 90% of Nigeria’s foreign exchange earnings, a crash in the international price of oil therefore affects Nigeria’s foreign exchange position badly. 

We have seen the CBN devalue the naira at the official rate to N380, all in avoid the FX speculation. Essentially, $14,000 in any account is big deal, and the CBN might just be coming for Erica.

Join The Conversation

Bring a friend.

You'll like this

August 13, 2020

There are more than 23 million people living in Lagos. So how best do you decongest? Extort, sorry tax people! In the space of four days, the Lagos State government has come up with barrage of taxes aimed at sending everyone back to their villages. Here’s the tea: First, there is the new taxes on […]

December 2, 2019

And it’s not the gyrating, shouting nursery rhymes and snap chatting kind.  … to understand that it is seeking approval from the senate to borrow $30 billion dollars to develop infrastructure in the country. This loan, if approved will: Almost rival the country’s proposed 2020 budget, which stands at $34 billion. Increase the country’s debt […]

Watch

Now on Zikoko

Recommended Quizzes

September 1, 2021

August is over, and here are some of our best quizzes from August. Enjoy: 1. QUIZ: Only Ajebutters Can Get 10/21 On This Quiz Some people like to form ajepako when they’re really ajebutter. Are you one of them? Let’s find out. 2. QUIZ: Sorry, If You’re Under 25 There’s No Way You Can Pass […]

April 3, 2020

While the rest of the world loves to treat our continent like a country, there are actually 54 African countries. So, in a bid to test your knowledge (and educate you), we’ve created a quiz to see how many of their capitals you can correctly name. Go ahead:

April 1, 2020

Everyone has a Nigerian bank that matches their personality. You could either be as likeable as GTB, as efficient as Access or as mature as First Bank. Either way, all you have to do is take this quiz and we’ll let you know with almost 100% certainty. So, go ahead:

October 10, 2019

2019 is certainly Burna Boy’s year, but, if we are being honest, so was 2018. Since his transcendent mixtape, Outside, the afro-fusion star has refused to get his foot of our necks — dropping a string of fantastic singles and then capping it all off with his career-best album, African Giant.  So, in a bid […]

February 26, 2020

Are you all set for marriage, or are you still figuring it out? Well, if you’re curious to know the answer, then this is the quiz for you. All you have to do is create your own ideal Nollywood wedding film, and we’ll tell you if you’re ready to say “I do”. Go ahead:

More from Citizen

Watch

Trending Videos

Zikoko Originals

September 13, 2022
Vs The World is a Zikoko original video series that follows best friends Astor and Hassan as they take on the world.
August 23, 2022
Zikoko Ships is a Zikoko Original series where we invite two people who share a relationship to play the Zikoko card games
December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X