enque:


I do CPs with Meristem and they clearly state all deductions in the proof of investment letter.

freeman67:


My issues with TB is the sudden 10% WHT they are deducting from accrued interest these days.

Nigerian banks have notified their customers that tax will now be charged on bonds and short-term securities on which tax is due, effective from January 2, 2022.

This followed the expiration of the Federal Government Finance Order 2011 which exempted bonds and short-term government securities from income tax for 10 years between 2011 and 2021.

One of the banks, Fidelity Bank, disclosed this in a notice to its customers on Wednesday, titled ‘government tax waiver on bonds expires’.

On December 9, 2011, President Goodluck Jonathan signed the Companies Income Tax Exemption Order 2011, which introduced tax exemption on T-bills and promissory notes, government and corporate bonds, and the interest earned on these instruments for a period of 10 years, starting from January 2, 2012.

Taxes will be charged on short-term Federal Government of Nigeria securities, such as Treasury Bills and promissory notes; bonds issued by state and local governments and their agencies; bonds issued by corporate bodies including supra-nationals; and interest earned by holders of the bond and securities, the bank said.

“For clarity, please note that the two taxes due on income earned on investment (including that of short-term securities) are: Withholding Tax – a 10 percent charge that is deducted at source and is applicable to both individuals and companies income tax – applicable to only companies at 30 percent,” it said.

According to the bank, bonds issued by the Federal Government remain exempted from this regime as this was hitherto not taxable, and all investments in non-FG bonds, Treasury Bills, promissory notes and other short-term government securities shall now attract 10 percent deduction at source at maturity (withholding tax on interest).

“This is payable to the relevant tax authority in accordance with applicable tax laws for Personal Income Tax (for individuals) and Company Income Tax (for companies),” it said.

NL1960:


Risky but possible. The Microfinance banks change interest per month and it is on flat basis and not on reducing balance basis. Some change as high as 6% per month. 6% per month is 72% P.A.

freeman67:


That's good, Afrinvest also does that but they will bill you from all angles possible, they will charge you for the transaction even after the issuer have settled them. Then tell you that the investment is sublet to them because they are stockbrokers and not merchant bank so they have to bill to get their own.

Thus, I prefer merchant banks like FBNQUEST, Coronation and the likes. Coronation usually don't do any other deductions apart from the principal because they are most times either the lead arranger or one of the arrangers and the cost is borne by the issuer from their end. However, on this tax thing, they do not stipulate it on the proof, and when you ask they'll refer you to their mail/advert where it's stated that ' Applicable taxes shall apply except where otherwise exempt'. How I want take the follow up on exempt and none exempted again?

Infact there have been an instance that they have to come me to send them my TIN just when it was close to maturity. That is the only thing I don't fancy about them.

VeeVeeMyLuv:

This is not possible

This is misleading

ojesymsym:
Just curios, what is misleading?

VeeVeeMyLuv:

He said an individual can get 72% return on investment for a period of one calender year. That's not possible.

ojesymsym:
Check again.

That is not what he said. He said some microfinance banks charge as much as 6% interest rate on loans per month which translates to 72%P.A. He then implied that if they can charge their customers that amount then perhaps they may be able to pay investors up to the amount that was in the sheet that he was replying to.

Chikebrain:

Does FBNQUEST offer CP

VeeVeeMyLuv:

Okay thanks

Boyhood:
16.5% pa

davit:


Is this a Commercial Paper?

Hogwarthtrades:


Returns talked about here is weighted in naira. check out morningstar (search NSE all share nigeria), you can check out investing.com for daily /weekly or monthly return up to 2004 i think. The last 3 years pretty much an anomaly.

emmasoft:
Let your Detty December money make some money for you before it gets Detty.

MMF Rate is responding to High Tbills rates as earlier noted. The MMF rate is on the way up try and go up with it.
By tomorrow it will be December, take advantage of increasing MMF rates and make more money this December.
I will advise folks to take this opportunity and drop your funds for the festive period and January 2024 in MMF to have better returns.

Click the link on my signature to start investing in the Stanbic MMF or contact me.

freeman67:


He is not looking to make a new investment, he talking about the already subscribed SUKUK VI.

There are other CP's with higher rates; like SKDL and Robust international with coronation. My issues with TB is the sudden 10% WHT they are deducting from accrued interest these days.

Foodempire:


Kindly explain the bolded. I thought there's no withholding tax on treasury bills, is this new?

jedisco:


The NSE has been sideways since 2008 and only this year exceeded its high of 2008. The years ahead are looking up but then it underperformed in a decade when most major markets were in full swing.

Weighting in naira also doesn't do justice to an individuals ROI as the naira has lost on average 10- 12% against the dollar yearly. I.e a 10% return might equate to just holding usd instead

VeeVeeMyLuv:

Nov 8th & Nov 20th ( last for the year)

VeeVeeMyLuv:

Nov 8th & Nov 20th ( last for the year)

OGHENAOGIE:
when is the next auction and why is Nov 20th the last to bid for TB.. thks for update

VeeVeeMyLuv:

There will probably be auctions in December

OGHENAOGIE:
alright I ll check but is there any where one can know current rates for 90 days...

VeeVeeMyLuv:

https://www.nigeriagalleria.com/Galleria_Finance/Nigerian-Treasury-Bills-FGN-Bonds-Auction-Results.html

Chikebrain:
This is fairmoney interest rate. How is this rate possible. I'm almost tempted by it

Olaide1295:

I won’t touch that bank with a 10-ft pole. I’ve seen their numbers and it’s not nice. Lots of non performing loans