I have been reading some information on treasury bills and I am interested but I would like you guys to tell me the top 5 banks or institutions where I can invest in treasury bills with the lowest amount possible. Thanks

ALL YOU NEED TO KNOW ABOUT INVESTING IN TREASURY BILLS IN NIGERIA

Would you like to put money aside and earn significant interest returns in only a few weeks or months? You might consider buying treasury bills, a popular and accessible form of investment.

Treasury bills are one of the safest forms of investment in the world because they are backed by the federal government. They are considered risk-free. They are also used by many other governments throughout the world.

1. What is a treasury bill?

Treasury Bills are short-term debt instruments issued by the Federal Government through the Central Bank to provide short-term funding for the government. They are by nature, the most liquid money market securities and are backed by the guarantee of the Federal Government.

They are usually issued for tenors of 91 days, 182 days and 364 days at the primary market auction held fortnightly by the Central Bank of Nigeria. The interest rate (stop rate) at the auction is not fixed but fluctuates based on demand and amount offered by the apex bank. The difference between the value of the bill and the amount you pay for it is called the discount rate and is set as a percentage.

2. How does treasury bill work?

Basically, the Federal Government issues treasury bills at discounted prices for maturity periods between 91 and 364 days. At the end the selected maturity period, the government buys the bills back at full price. For example, let’s say you buy a 182-day ₦200,000 treasury bill at a discounted rate of ₦180,000.

The Federal Government of Nigeria writes an IOU for ₦200,000 and agrees to pay back in 182 days. You don’t get any monthly interest payments, rather you make your money back when the bond is purchased back from you at full price. In this case the T-Bill pays 11% interest rate (₦20,000/₦180,000 = 11%) over the 182-day period.

3. Treasury Bills Vs. Government Bonds.

When the government is going to the financial market to raise money, it can do it by issuing two types of debt instruments – treasury bills and government bonds. Treasury bills are issued when the government needs money for a shorter period while government bonds are issued when they need debt for more than say five years.

Treasury bills; generally shortened as T-bills have a maximum maturity of 364 days. Hence, they are categorized as money market instruments (money market deals with funds with a maturity of less than one year). People usually use the terms “notes” or “bonds” to refer to longer-term treasury instruments.

4. Benefits of investing in treasury bills.

It is a risk-free investment as it carries the guarantee of the Federal Government.
Treasury Bills are very liquid and can be converted to cash quickly.
A liquidity-active secondary market for ease of entry and exit (though at a cost).
It is a discount instrument enabling the investor to earn interest upfront, thereby, increasing the effective yield on investment (on the assumption that the interest earned is re-invested).
Interest earned is tax exempted.
They can be used as a collateral.
Also Read: Nigeria’s Top 5 Mobile Banking Apps In 2018.

5. How to buy treasury bills in Nigeria.

If you are interested in investing in treasury bills here’s how to go about it. Treasury bills are usually held by financial institutions including banks. Treasury bills can be bought through your bank the process is simple. Get in touch with your bank and you will be put through. The minimum amount of treasury bill you can buy depends on the dealer. Some banks offer a minimum of ₦50,000, while some offer a minimum of ₦500,000.

You can invest your T-Bills for 91 days, 182 days or 364 days. This means for example that, if you invest for 91 days, your investment will mature after three months. If you invest for 182 days, your investment will mature after six months and so on.

6. Who can buy treasury bills?

Individuals, Firms, Trusts, Institutions, and banks can purchase T-Bills.

HOW TO INVEST IN THE NIGERIAN STOCK MARKET

The Nigerian Stock Exchange, or NSE, is one of the largest stock markets in Africa. Featuring top companies from every conceivable industry in Nigeria, the NSE is home to the many traders who perform the actual transactions that allow investors to buy and sell shares of stock.

Over billions of naira pass through the NSE annually, and anyone who is looking to grow his income can invest in the exchange with a brokerage account and some market knowledge.

What is a Stock Exchange?

A stock exchange is an organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply.

Stock exchanges basically serve as primary markets where corporations, governments, municipalities, and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures; and secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system.

One of the major responsibilities of a stock exchange is to impose stringent rules, listing requirements, and statutory requirements that are binding on all listed and trading parties.

The Nigerian Stock Exchange (NSE).

The Nigerian Stock Exchange (NSE), founded in 1960 as the Lagos Stock Exchange, services the largest economy in Africa. It provides access to capital for Nigerian and international companies that take advantage of the capital market to fund their strategic business expansion.

As a registered company limited by guarantee, the NSE is regulated by the Securities and Exchange Commission of Nigeria and licensed under the Investments and Securities Act. All listings are included in the NSE All-Share Index, which was formulated in January 1984 with a base value of 100. Only ordinary shares are included in the computation of this index.

The NSE is a founding member of the African Securities Exchanges Association and also a foundation member of the World Economic Forum. The Nigerian Stock Exchange currently has over 160 listed companies including the like of Zenith Bank, Unilever, UAC Foods, Oando and Julius Berger in its portfolio.

How to invest in the Nigerian Stock Exchange?

Buying stock on the Nigerian Stock Exchange (NSE) is not the same as most of the other purchases you make. You can’t simply walk onto the floor of the NSE and fill a shopping cart as you do at the grocery store.

Instead, you must hire a brokerage firm (e.g. ARM Securities, Lead Capital, Meristem and Zenith Securities) to buy the stock on your behalf. Different brokers offer different levels of support and advice to their clients, so it’s important to choose the proper level of support for your needs. Once you’ve hired a broker, you will ask him to buy and sell stock for you whenever you wish to make a transaction.

Below is a step-by-step guide of the basic steps to follow to start investing in the Nigerian Stock Exchange.

1. Find a stockbroker to open a brokerage account.

2. Complete the Central Securities Clearing Systems (CSCS) account opening form.

3. Fund your stock brokerage account.

4. Submit your first trade order once you decide what you want.

Conclusion.

Buying and owning stock is an exhilarating experience when the stock price climbs and you see your investment making money. But sometimes stock loses value, and this isn’t nearly as much fun to watch.

It is crucial to understand that you can lose money in the stock market. As a result, it is best to diversify your portfolio. This means buying stock in several companies and industries rather than putting all of your eggs in one basket. It’s also important to thoroughly research a stock before buying it.

Detailed and well enumerated

HOW TO MAKE MONEY FROM BITCOIN IN NIGERIA

Bitcoin continues to be one of those mysteries that many people seem to have heard about but don’t understand. Bitcoin is a form of digital currency, created and held electronically. Unlike US Dollars or Euros which are printed, Bitcoins are mined electronically with computers.

Recently we all have been seeing in the news that how few people have become multi-millionaire just by investing a few bucks in the early days of Bitcoin. You too can make so much money by investing in Bitcoin. Before you start investing, it is vital for you to educate yourself about what Bitcoin is and several ways of making money from it.

What is Bitcoin?

Bitcoin is the first decentralized digital cryptocurrency. It can be saved, spent, invested, traded and even stolen. It is open source peer to peer digital currency launched in 2009 by Satoshi Nakamoto. Bitcoins are like a virtual digital coin that you can send using the internet. No middle man or transaction fee is involved while dealing in Bitcoin or any other cryptocurrencies.

However, bitcoin is one of the most expensive currencies. As of October 2018, you need to spend $6,221 to purchase 1 BTC. If we talk in term of Naira you need to ₦2,259,588.92 to purchase 1 Bitcoin. Bitcoin is not a physical coin. It is a paperless, transparent and electronic form of money.

How to invest and make money from Bitcoin?

1. Bitcoin Trading.

Bitcoin Trading is simply the buying and selling of bitcoin. Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins.

You can make a lot of money by buying and selling bitcoin online. Bitcoin trading is like the stock market. It is a high risk, high reward affair. The perfect strategy for making good money from Bitcoin is to purchase Bitcoin at a lower value and sell it at a higher value to earn a profit. To get the best of Bitcoin investment, start by observing the Bitcoin Market trend.

2. Bitcoin Mining.

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new bitcoins are released. Anyone with access to the internet and suitable hardware can participate in mining.

The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the blockchain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. Click here to learn more about bitcoin mining.

3. Bitcoin Exchange.

A Bitcoin exchange is a website that handles the trading of bitcoin to other cryptocurrencies such as Ethereum, Litecoin, Dash etc. A bitcoin exchange serves as a digital marketplace where traders can buy and sell bitcoins using different currencies or altcoins.

A bitcoin currency exchange is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency. People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.

4. Affiliate Programs.

Finally, you can make money from Bitcoin even not spending a cent. Some Bitcoin services are offering affiliate programs, within which you can be rewarded with some bitcoins for referring users to their services.

The sites are paying for digital marketing for your referrals and you make money by sending customers to them. It is a win-win for everyone. Not only does referrals drive traffic to their site but also provides earnings to grow their company and brand. Once your referrals go to the websites to register or invest, you will earn money.

How to purchase Bitcoin?

Bitcoin can be purchased from different bitcoin currency exchange networks. These networks allow users to buy Bitcoin from their chosen form of currency including the Nigerian Naira, US Dollars, British Pounds and Euros. In a previous post, we talked about websites to buy and sell bitcoins in Nigeria.

For you to purchase bitcoins, you need to have a “Bitcoin Wallet” which allows you to store and transact with Bitcoin. A “wallet” is equivalent to a bank account. It allows you to receive, store and send bitcoins and other digital currencies.

Conclusion.

It is time to see things the right way and follow the paradigm shift of wealth creation through cryptocurrency. Even though investing in Bitcoin comes with a very high risk due to its volatility, it can also be a sure, steady and simple way to make huge profits.

Biritiko:
https://www.nairaland.com/878880/treasury-bills-nigeria

Thank you for your response. But I decided to post this topic asking WHERE because I do not have the time to go to every bank and financial institution making enquiry regarding their treasury bill requirements. So please give me a list of top 5 banks and the percentage they offer via treasury bills. Thanks

MisterKings:


Thank you for your response. But I decided to post this topic asking WHERE because I do not have the time to go to every bank and financial institution making enquiry regarding their treasury bill requirements. So please give me a list of top 5 banks and the percentage they offer via treasury bills. Thanks

Go and ask all your questions on that thread , the. You can get someone to answer you .
Nobody will answer you on the new thread you created cos nobody will see your questions

Asking questions in this forum, we want not only to answer your question, but also try to advise you and suggest how it will be better for those who have already collaborated with this or that bank)