This is War: The VAT, CBN and the aboki
Emefiele: I have given instructions to our experts to go after his website and let it be clear that we will go after him because we can’t allow this to continue. Aboki fx: $1 = N1
America has Holywood. Nigeria has Nollywood. Nollywood is drama. Nigeria is drama. You can't take it away from us. There should be an explanation why the World Happiness Report 2021 listed Finland as the happiest place while Nigeria ranks 59.
Every day comes with its comedy. A comedy that is not so funny.
In the past week, there’s been a VAT war between states and the federal government of Nigeria. Well, federal is broke, states are broke - the bigger lion wants all the money. Some states like Rivers took the matter to court.
Then Emefile struck. It’s the war between CBN and the black market. First, it was banning the BDC guys from selling fx. Before the ban on the 27th of July, CBN allocates $20,000 every week to BDC operators.
There’s a better expert view from the guys at RiseVest (disclaimer: this is not an ad):
“In Nigeria, there are two markets: the NAFEX market which is cheaper but not available to everyone, and the black market which is expensive but available.
The black market rate is the floating market rate, and its prices are determined by demand, supply, and speculation. The exchange rate at this market closed at N545/1 on Friday 17th September 2021.”
This is what the CBN governor - Godwin Emefiele, said about Abok fx: “The CBN act section 2, does make it clear that only the Central Bank can determine the value of the naira, and yet a single individual living in England continues to manipulate the exchange rate and make a huge profit which he withdraws through an ATM in London.”
If you follow Nigeria closely, you never can tell what’s coming next. For now, let the champion wins.
Have a good evening.
Samson Omamuzo (LINKEDIN)
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Samson Omamuzo (LinkedIn)