NCR - Nigerian Banks, ATMs and more business

[oseitutu]

I have been watching the developments in Nigeria as bank after bank has been deploying new ATMs from mainly NCR. There is an NCR entity quoted on the NSE. Now I want to know whether they are in any way connected to the NCR overseas that has won several contracts to supply ATMs. If they are, then the maintainance contracts should mean good business for them both now and in the future. Then one could consider buying the stock now. However if not, then one would hold his money. Does anyone have this information?

[forumasto]

NCR overseas has about 60% of NCR NIgeria.

You can read get a lot of info from the various links below.


http://www.sunnewsonline.com/webpage...4-2006-001.htm

[Onwuka Iroabuchi, S]

My brother I heard about the ATM deal last year; some group of money managers from HSBC were supposed to train some First bank workers, on the official use of ATM'S. Nigerian Guardian reported this...

The real question is whether or not we need this ATM in Nigeria...am personally opposed to sending foreign currency to our third world country for fear that it might pose unnecessary challenge on the local currency...think cur. inflation.

[oseitutu]

Originally Posted by Onwuka Iroabuchi, S

My brother I heard about the ATM deal last year; some group of money managers from HSBC were supposed to train some First bank workers, on the official use of ATM'S. Nigerian Guardian reported this...

The real question is whether or not we need this ATM in Nigeria...am personally opposed to sending foreign currency to our third world country for fear that it might pose unnecessary challenge on the local currency...think cur. inflation.

The ATMs will dispense (and in fact are already dispensing) local currency. And about your being opposed to foreign currency, when foreign currency comes into a country, it increases supply and thus is a good thing. I do not understand your opposition. Where is the link to this Nigerian Guardian report?

[Onwuka Iroabuchi, S]

Well, foreign currency in any local market is just bad news. I mean I can go hours on the topic but I want to understand that transporting Naira to America is completely unacceptable. Yes, Soludo might get a high water mark for his overzealiant monetary policies but I think he is old school and I also think that Sanusi had a better grip on our money market with leverages he procured for local financial institutions unaffiliated with Banks.

Sanusi blocked dollars pouring into the economy for purposes of local incentive. That is letting Naira-off, the challenge possed by other currencies in he country. It was necessary to force Western Union, Virgo, and the Travellers Check to buy into our Naira as part of a contigency bottom line on the bpp. The value of any currency depends on it's usability, we might owe all the world but your money has material value or actionable value if it can be used outside the country by others and stuff. It will be recalled that during Sanusi's era, Naira was falling at same time oil price was going up. To a buyer...we are talking export quality stuff as pe oil but to an average Nigeria oil is bad business but the currency didn't experience any major setback and was hence inn cruise control, prooving option for any well meaning Nigerian. He/she can diversify...on his value, leading him/her to seek direct investment in country and monitor the performance of our unit of exchange.

Western Union made so much money in Nigeria that it was bad business to pull out, they couldn't. They were only interesed in keeping Nigeria poor or at least keeping the money transfer industry to themselves...and thier prompt reaction was to increase the amount of money people pay to send money to Nigeria, that is service was at least twice what it was in past. They were eventually dragged to court and fined a restitution. By increasing the money Nigerians paid they could revolve around the Forex exchange, buy and trade in US dollars before any 0.00001% gain is made by Naira at the expense of U.S dollars...without adding to any acceptable quota for capital financial gain on and by currency agains our dollar. In sense Nigerian Naira is radioactive stuff to U.S traders

But Soludo did the opposite when into power...by lifting this barn on foreign currency he saturated power on these Dollar/Eu in hope of attracting foreign investors, which might perhaps keep our ocal market competitive. From my experience here in New York, this is a move in the right direction but given the aoens and limitations of investor confidence and advanced psychology of money...that move to the world, flashed Soludo as naive and peradvently amartuerish. Such wooing of investors will never happen, the best that can happen is angst-ridden companies like MTN and other exploitatorates seeking no permament seat in NSE, offering our local poor Nigerians European prices for a daily need as communication, fleecing the country with brutes' effeciency to the weakening of thier buying power. Nigeria is facing a complete collapse of it's structure finacial...and all these bad news 'henning' in the North will gradually reach the south unless something is done. There is such a thing as standard deviation...and linear combination...but what is that in explicating poverty in Nigeria-if the currency had to fight for it's right in it's home. Besides, our market is not that intergrated as to face a dogged American challenge of Naira

It is morose at best, to think that ATMs in Nigeria will only dispense local cash...perhaps so, but with things gradually falling apart in Nigeria for transborder trade and money market...the price cannot be higher as data markets all over the world is watching how many Nigerians are sending money in dollars and picking it in dollars without any feasibility study on it's compound effect on our local currency

[oseitutu]

Onwuka, I have to thank you beacuse you have taken time to highlight some important points though I must confess, your discourse was a few steps ahead of my comprehension (probably because my monettary economics training is self guided, so I may have missed several important aspects).
There are several points I must draw your attention to. This may not be the right thread to carry out this discussion but let me point these out to you. I may start another thread if this discussion continues.
1. Naira has been stable for at least 3 years now against the dollar, and the british pound. Sanusi NEVER achieved that. All we saw was a free fall, to the extent that if you wanted to save money, you were adviced to open a domicillary account...IN NIGERIA!
2. Western Union made....and is still making money in Nigeria. With a net flow of forex into Nigeria, what happens? Nigeria has more forex to spend in the international market. If there was no inflow of foreign currency, the demand will be so high that the forces of demand and supply would make it very costly. This is what was happening even after the western union was introduced to Nigeria in 1994 by First bank. Nowadays, our banks are more liquid, are more respected internationally and direct bank to bank transfers are possible from oyibo land to 9ja land. Did Sanusi achieve that? NO!
3. You attract foreign investors by having a predictable cost of production. You achieve that by having stable costs viz-a-viz stable naira to the dollar and other currencies. Soludo achieved that.
4. The compound effect of sending money home is galvanising development. Would you sell Nigerian crude oil in naira? Even if you did, the buyers will come with their various currencies and buy Naira from us and then use it to buy your oil.
I am sorry but I am wondering why I am responding to your enry. Possibly because I think you have a lot of tghings all wrong-sided and many other people will be reading this string. Just take it this way:
Naira stability is a good thing.
ATMs in Nigeria is a goood thing.
Influx of forex is a good thing.
Soludo has done well....better than anyone so far. Soludo is the solution!

[c kenneths]

There are things that are not even supposed to be argued about, like comaring Sanusi's ploicies to Soludo's. its like comparing darkness to light, at the end of Sanusi's tenure(i cant even remember when he was there or when he left.) but how many awards did he win?

Our ATM's dispensing foreign currencies? ha!