Investment in fixed income must serve as a routes to raise capitals or mitigate risk ......coupons must be used to try other more rewarding ventures or coupons used for daily living expense...

GBfoods, a culinary products manufacturer, in partnership with the Central Bank of Nigeria, the Kebbi State Government and the Emirate of Yauri, has completed the building of a N20bn tomato processing factory, in Kebbi State.

A statement from GBfoods says the factory is the second largest in Nigeria and the only fully backward integrated plant in the Economic Community of West African States, and has the largest single tomatoes farm in Nigeria.

When all phases of the project are finished, it stated, the factory would be the largest fresh tomatoes processing factory in sub-Saharan Africa.

The statement said, “The investment in the world-class factory and adjoining farm includes a drip irrigation and fertigation infrastructure, greenhouses, seed planting robots, an incubation chamber and a plethora of agricultural machinery.

“The farm will serve a dual purpose. It will produce industrial tomatoes in the dry season and soya beans in the raining season.

“The tomato factory will convert fresh tomatoes into tomato concentrate used for producing Gino Tomatoes Paste and Gino Tomato Pepper Onion Paste while the soya beans will be used to process soya-bean oil which is a critical ingredient for GBfoods’ Bama and Jago Mayonnaise.”

It added that the project created over 1,000 jobs including 500 farming jobs, 150 factory jobs and 150 construction jobs.

Just a quick question, what airline goes from Lagos to Douala, I was told Asky Airline but I've never heard of them, have you used their service before and how would you rate them?

Cheers

Cyberknight:


I've been to Douala and seen the Dangote plant there too. But I've also seen the port expansion that was carried out at the Douala port, and the modern highway built to link the ports with the interior of the country and ultimately the CAR border.

jabolo:


With management scooping up 65% of the excess gain, could you please share the implied Expense Ratios for those six years? Thanks.

From the fact of the fund,
The fund manager gets paid out of the excess gain of the fund and its shared as stated
35% for investors
15% reserved
50% for all the various fees (Trustees, custodian and others) that make up the expense ratio.
Over the years the excess above the SDF is in the range of 4% sometimes slightly less or more.
Whatever now accrued to the fund manager each year now depends on what that percentage translate to in terms of real figures.
This is a win win case because the fund manager have to work hard to make sure there is excess since that is where their fees comes from.
The investor on the other hand already has a Guaranteed rate which is not affected by the performance of the fund in anyway.

ahiboilandgas:
Just dont pill up money in fixed income at poor rate without strategy......even the 11.3 it will take 9 years for investment to double but what the real value by then .....example if with 40m i can buy 5 2 bedroom apartment in festact at 8m each .....with the growing populations what will be the selling price of each by 2030 .....may be 20 m ....so after 10 years my bonds will be around 80m ....how many apartments can 80m buy in same festac in 2030 80/18 =4....so i have lost 1 apartments worth (20m) ......that not my only lost i have also lost annual rents of 2.5m x10 years =25m .....grand lost will be 45m in value ....nb reinvesting coupons =rental increases .....empty apartments =failed bids...

Sorry to slightly disagree with you. Many would prefer to put 80m in fixed deposit and earn 10%, rather than invest same 80m in real estate and earn 20%. Remember you are going to have less stress with your 80m in fixed deposit. Unlike investing same 80m in real estate, where you have to contend with some devilish tenants, costs of repairing facilities in your commercial house from time to time. Real estate is indeed profitable in Nigeria, but you must be ready to face the stress and high blood pressure that goes with it, even if you have a good lawyer or agents helping you out, you can only mitigate the stress a bit, but cannot be completely eradicated.

Donbrig:


Sorry to slightly disagree with you. Many would prefer to put 80m in fixed deposit and earn 10%, rather than invest same 80m in real estate and earn 20%. Remember you are going to have less stress with your 80m in fixed deposit. Unlike investing same 80m in real estate, where you have to contend with some devilish tenants, costs of repairing facilities in your commercial house from time to time. Real estate is indeed profitable in Nigeria, but you must be ready to face the stress and high blood pressure that goes with it, even if you have a good lawyer or agents helping you out, you can only mitigate the stress a bit, but cannot be completely eradicated.

am just giving hypothetical example from the tweets...nb returns on investment is not based on emotions , high bp and social factors ....it based on economic indexes, accounting principle, weighed average , rate and return,risk and rewards etc ......dangote can choose to place 100bn in fixed income at 5 percents or build obajana at 100bn and earn 35 percent returns .......rental income can be any where like mr emma say i can part own 1004 estate via uac or several choice properties in ikoyi via share holding in such firms ....

Donbrig:


Sorry to slightly disagree with you. Many would prefer to put 80m in fixed deposit and earn 10%, rather than invest same 80m in real estate and earn 20%. Remember you are going to have less stress with your 80m in fixed deposit. Unlike investing same 80m in real estate, where you have to contend with some devilish tenants, costs of repairing facilities in your commercial house from time to time. Real estate is indeed profitable in Nigeria, but you must be ready to face the stress and high blood pressure that goes with it, even if you have a good lawyer or agents helping you out, you can only mitigate the stress a bit, but cannot be completely eradicated.

If you buy better house for better place with 80m,you and tenant no go get issues.
People that will give you trouble won't be able to afford beginners rent for that kind of property in the first place.
So if you buy 40m mini duplex for lekki,you go come dey drag with tenant untop 2.5m rent?
He who goes for that property can afford it effortlessly almost 80% of the time.
Default is rare.
Na all those old,backwater properties weh tenant dey drag with landlord for wella

Donbrig:


Sorry to slightly disagree with you. Many would prefer to put 80m in fixed deposit and earn 10%, rather than invest same 80m in real estate and earn 20%. Remember you are going to have less stress with your 80m in fixed deposit. Unlike investing same 80m in real estate, where you have to contend with some devilish tenants, costs of repairing facilities in your commercial house from time to time. Real estate is indeed profitable in Nigeria, but you must be ready to face the stress and high blood pressure that goes with it, even if you have a good lawyer or agents helping you out, you can only mitigate the stress a bit, but cannot be completely eradicated.

in Lagos business school and investment class ....u are giving two scenarios to calcualted the pay back period .... (pure finance no emotions) ...items like high bp , devilish tenates and stress are not added to p/l accounts ...we have items like depreciation,appreciations , cash flow , income, debt, insurance premuims , valuations,.....this give a investor a clear picture of what is doing ...

Theconglomerate:
If you buy better house for better place with 80m,you and tenant no go get issues.
People that will give you trouble won't be able to afford beginners rent for that kind of property in the first place.
So if you buy 40m mini duplex for lekki,you go come dey drag with tenant untop 2.5m rent?
He who goes for that property can afford it effortlessly almost 80% of the time.
Default is rare.
Na all those old,backwater properties weh tenant dey drag with landlord for wella

very true ....dangote group cannot be draging rents with union properties owner of union homes ....i can own shares in union homes....

ahiboilandgas:
very true ....dangote group cannot be draging rents with union properties owner of union homes ....i can own shares in union homes....

I never knew they sell shares on already built buildings.
Why?
Is it to pay back the bank loan they used to build the property or what?

Donbrig:


Sorry to slightly disagree with you. Many would prefer to put 80m in fixed deposit and earn 10%, rather than invest same 80m in real estate and earn 20%. Remember you are going to have less stress with your 80m in fixed deposit. Unlike investing same 80m in real estate, where you have to contend with some devilish tenants, costs of repairing facilities in your commercial house from time to time. Real estate is indeed profitable in Nigeria, but you must be ready to face the stress and high blood pressure that goes with it, even if you have a good lawyer or agents helping you out, you can only mitigate the stress a bit, but cannot be completely eradicated.

Nb am not a fan of property but enterprise....but a land bought for 800 k in 2004 was sold for 18m jan2020 .....it bet inflations,poor rates and devaluation......

Theconglomerate:
I never knew they sell shares on already built buildings.
Why?
Is it to pay back the bank loan they used to build the property or what?

na oga emma go fit answer ...one of my mentors has about 14 apartments in 1004 estate ...so i was surprise that the man paid 30mx14 ...until mr emma explain to me how they used uac to buy each apartments at 3m from federal govt in 2004 ..now sold for 37m in 2020.

Hello everyone, i need a serious advise, i have a property in lekki phase 2 axies, i bought the property 2015 but rent returns is not encouraging couple with the damages left behind by the tenant, i believe i can get about 60m to 65m been that 2015 i paid 58m including agency and lawyer, my question here is should i sell the property maybe invest in government bond like 15years, the yearly coupon i will get will be channel to develop 50by100 i owned in asaba delta state or should i hold on to the property hoping that dangote refinery can increase the value of the property or should i cut my lose and cash out.

Thank you.

Comeandcollect:
Just a quick question, what airline goes from Lagos to Douala, I was told Asky Airline but I've never heard of them, have you used their service before and how would you rate them?

Cheers

Yes, I've flown with Asky on the Lagos-Douala route.
Their service was OK - departed on time both ways. Clean plane. It's run by Ethiopian Airlines, so quite reliable.
They gave Arik a real run for their money on that route before the latter fell into the hands of the Nigerian government. I'm not sure if Arik still operates on that route anymore.

For some reason, the Asky inbound leg transits through Lome - ridiculous considering the short flight time to Douala. However, Arik used to do the same thing - their inbound flight used to go through Cotonou - a 15 minute flight.

FBN EURO BONDS IS THE BEST

https://beyondtoday.fbnquest.com/assets/img/balanced-graph2.png

ahiboilandgas:
Just dont pill up money in fixed income at poor rate without strategy......even the 11.3 it will take 9 years for investment to double but what the real value by then .....example if with 40m i can buy 5 2 bedroom apartment in festact at 8m each .....with the growing populations what will be the selling price of each by 2030 .....may be 20 m ....so after 10 years my bonds will be around 80m ....how many apartments can 80m buy in same festac in 2030 80/18 =4....so i have lost 1 apartments worth (20m) ......that not my only lost i have also lost annual rents of 2.5m x10 years =25m .....grand lost will be 45m in value ....nb reinvesting coupons =rental increases .....empty apartments =failed bids...

Well said sir

Theconglomerate:
If you buy better house for better place with 80m,you and tenant no go get issues.
People that will give you trouble won't be able to afford beginners rent for that kind of property in the first place.
So if you buy 40m mini duplex for lekki,you go come dey drag with tenant untop 2.5m rent?
He who goes for that property can afford it effortlessly almost 80% of the time.
Default is rare.
Na all those old,backwater properties weh tenant dey drag with landlord for wella

Logically it makes sense. However, if the tenant is that loaded he or she wont really be a tenant in the first place. Truth is, a 2.5m rent would “possibly” have a senior manager working with a multinational as a tenant. The reality is, with the current economic downturn that job can be lost and rent would be a struggle.

Default is a risk that comes with tenancy especially in these challenging times

cooldudeng:


Logically it makes sense. However, if the tenant is that loaded he or she wont really be a tenant in the first place. Truth is, a 2.5m rent would “possibly” have a senior manager working with a multinational as a tenant. The reality is, with the current economic downturn that job can be lost and rent would be a struggle.

Default is a risk that comes with tenancy. I’ve got one on my hands.

Lots of guys in their mid careers with family will always rent semi detached duplex.
Also,what of transferring families.You don't expect a family settled in Abuja in their property that moved to lagos to also buy another house na.
They will always rent.
Bottom line,there is a market for these things always.
I didn't say risk of default is zero,but it is way way way less than in their backwater counterparts.

Looks like the CBN is planning some desperate move to strengthen the naira this coming week.
Saw that they debited N216B from banks today so that there would be little naira chasing the few dollars they might release on monday.
Truth is,how sustainable would it be?
Can they do it?
Bittersweet moments!!
Cc Gonfreecss1.
What do you think?

Ok o. Kontinue. Hmmm.

GonFreecss1:



Loool! I have been following VGIF for years! It is a good fund. I dare say it’s outperformed many other mutual funds on average.

FBN - Fixed Income fund
United Capital Bond fund
Stanbic GIF
Fbn money market fund
Stanbic money market fund
Investment one VGIF!

I have been monitoring all these funds for years now, because they have been exceptional apart from recently when the money market funds have blinked out, and the returns on VGIF have been exceptional. They are always ranging from 3rd to 1st among the low risk funds in terms of returns. If I sat down and did the maths, I think they might be number 1 on average.

Don’t take my word for it, do your research.

Mr tomatoes how market?

Theconglomerate:
Looks like the CBN is planning some desperate move to strengthen the naira this coming week.
Saw that they debited N216B from banks today so that there would be little naira chasing the few dollars they might release on monday.
Truth is,how sustainable would it be?
Can they do it?
Bittersweet moments!!

Godbpraised:
Mr tomatoes how market?

Unto which levels na?
I no understand.
You mean tomato market?

emmasoft:

From the fact of the fund,
The fund manager gets paid out of the excess gain of the fund and its shared as stated
35% for investors
15% reserved
50% for all the various fees (Trustees, custodian and others) that make up the expense ratio.
Over the years the excess above the SDF is in the range of 4% sometimes slightly less or more.
Whatever now accrued to the fund manager each year now depends on what that percentage translate to in terms of real figures.
This is a win win case because the fund manager have to work hard to make sure there is excess since that is where their fees comes from.
The investor on the other hand already has a Guaranteed rate which is not affected by the performance of the fund in anyway.

Thank you. You have answered my question. The Expense Ratio in that example is 2%.

It would have been good to see all the historic figures but most of these funds are rather opaque.

Theconglomerate:
If you buy better house for better place with 80m,you and tenant no go get issues.
People that will give you trouble won't be able to afford beginners rent for that kind of property in the first place.
So if you buy 40m mini duplex for lekki,you go come dey drag with tenant untop 2.5m rent?
He who goes for that property can afford it effortlessly almost 80% of the time.
Default is rare.
Na all those old,backwater properties weh tenant dey drag with landlord for wella

Rental default is rare in Lekki...lol are these words from the internet or the realities on the streets? Some calculations here though. The street is not smiling and doesnt obey all these theories we put up. Shine your eyes people

Theconglomerate:
If you buy better house for better place with 80m,you and tenant no go get issues.
People that will give you trouble won't be able to afford beginners rent for that kind of property in the first place.
So if you buy 40m mini duplex for lekki,you go come dey drag with tenant untop 2.5m rent?
He who goes for that property can afford it effortlessly almost 80% of the time.
Default is rare.
Na all those old,backwater properties weh tenant dey drag with landlord for wella

My good sir

You have not met characters

jossy26:


Rental default is rare in Lekki...lol are these words from the internet or the realities on the streets? Some calculations here though. The street is not smiling and doesnt obey all these theories we put up. Shine your eyes people

I just dey laugh


Characters plenty for even Lekki


Except you go for a certain CALIBRE of people.
People with reputation to lose
That kind thing

That's the only way

What is the description of the property and exact location?
You should get a housing agent to evaluate the property, a 4-bed house fully furnished at Chevron drive recently sold for good amount, I will verify the amount.

what is the nature of the property damage? Maybe post a picture here, there maybe potential buyers.

Diyke4rich:
Hello everyone, i need a serious advise, i have a property in lekki phase 2 axies, i bought the property 2015 but rent returns is not encouraging couple with the damages left behind by the tenant, i believe i can get about 60m to 65m been that 2015 i paid 58m including agency and lawyer, my question here is should i sell the property maybe invest in government bond like 15years, the yearly coupon i will get will be channel to develop 50by100 i owned in asaba delta state or should i hold on to the property hoping that dangote refinery can increase the value of the property or should i cut my lose and cash out.

Thank you.

@Nnamz there is something i would like to know, i sent you a dm, reply pls.

Say who those one in lekki are the big problem some can even stay in ur house for 6months without paying, million plus already lost before they move out.

jossy26:


Rental default is rare in Lekki...lol are these words from the internet or the realities on the streets? Some calculations here though. The street is not smiling and doesnt obey all these theories we put up. Shine your eyes people

Its 5bedroom fully detach deplux and fully furnished at ikota villa estate, for example since i bought the property 2015 i have managed to collect 3 times rent from 3 different tenants, sometime for them to move out is a problem 3 months gone and another 3 to 4 months to get a new tennant, regards to the damage as soon as they leave you have to repaint the house in and out, changing toilet, bathroom fittings,lights, and treatment of the borehole before you know it a million is gone, what i was told before buying the property is not what i am seeing.

PresidentBuhari:
What is the description of the property and exact location?
You should get a housing agent to evaluate the property, a 4-bed house fully furnished at Chevron drive recently sold for good amount, I will verify the amount.

what is the nature of the property damage? Maybe post a picture here, there maybe potential buyers.

ahiboilandgas:
i was just inform....of the unification....very painful ........in real term all our new sukus profits is gone .......is cbn now scammers .....madam shopey help me look for ireland companies looking to buying agricultural raw materials like ginger .....man need to earn in euros

I've always had mixed feelings on this administration handling fiscal economic policies.

Theconglomerate:
To me I think if you can be patient to wait for TBs to mature after one year,then you can do official export.
First stage is sampling,you first send the buyer what he wants via UPS and the likes so that you guys can finalise on quality and all that at this stage.
Since as it is your first time to sell to the buyer,e go open LC for the trade.
This LC na collateral from his bank to secure your money,so that he can't abandon the goods at the ports or take your goods and don't pay.
That is if the buyer no pay you,his bank will pay you and later collect the money from him with force.
It's your security.
Then you will register with NEPC so as to complete your NXP folder that contains a host of documents and gives you the go ahead to export.
Nigeria registrations na just money,no much bureaucracy as they don't even check All they want is money
When you and your buyer conclude and he opens LC,you contact shipper for container,buy and load and take to the ports and hand the bill of lading shipper give you to your bank and your bank will forward it to buyer's bank that will give to buyer for clearing.
Now you guys will agree on your contract when he is to pay and his bank will be aware.
When the time reach and you no see your bread,just contact your bank and your bank will contact his and you will get your money almost immediately.
But if you guys start do business for long and trust enters,you won't need this no more as you already know him and where to find him if he fùcks up.
You are not at the buyer's mercy at all,unless you load something else different from the sample you guys agreed on,so take plenty pictures of everything you do as proof for any future argument.

Nice one from you.

The NEPC was my problem when we were exporting cashew nuts. But somehow, the buyers sent thier agents down here and it was easy for us like 'buying and selling'