casiello:
Which branch?

toyin street,ikeja.though the rates may change

zamirikpo:


I don't understand......do u mean TB still remains max. 1yr tenure. I tot they changed it to btwn 2-3yr tenure.

TB is a short term monetary instrument,hence it can't exceed 1 year

chyima:


toyin street,ikeja.though the rates may change

Thanks

Thanks everyone for the education so far. I have spare cash of 1million naira. I recently approached my bank- stanbic ibtc for TB, The guy at d desk told me to do FD. I insisted on TB. When he saw i knew what i wanted, he angrily told me to come back on wednesday 16/8/2017 that there will be primary market opening that day. As a newbie, when should i arrive the bank? What and what should i ask for and what should i expect? I dont want to sell myself out as a novice on that day. Please hint me sirs. I know u guys have answered similar questions b4. But just refresh it. Thanks

Gaddaffi121:
Thanks everyone for the education so far. I have spare cash of 1million naira. I recently approached my bank- stanbic ibtc for TB, The guy at d desk told me to do FD. I insisted on TB. When he saw i knew what i wanted, he angrily told me to come back on wednesday 16/8/2017 that there will be primary market opening that day. As a newbie, when should i arrive the bank? What and what should i ask for and what should i expect? I dont want to sell myself out as a novice on that day. Please hint me sirs. I know u guys have answered similar questions b4. But just refresh it. Thanks

If you go on Wednesday, nothing for you because applications for TBs have to be submitted through the branches latest 2 days working before the TB auction date and Wednesday is the auction date. Just make sure you are at their doorstep on Monday morning as they open their doors and tell him to give a primary auction TB form to fill. Do not fill your own rate. Go with the bank rate.

zamirikpo:


I don't understand......do u mean TB still remains max. 1yr tenure. I tot they changed it to btwn 2-3yr tenure.

yes naira dominated tb remains one year Max ,what will happen if the govt raise 3 bn dollar @ 7 it will convert it to naira to pay up interest on existing tb ,going forward the volume required by the federal govt will reduced it will be strictly for inflation control and liquidity ,but remember the govt will have to pay back the foreigners in dollars at maturity ,this will eat up foreign reserve balance position of Nigeria and make the naira loss value then inflation goes up due to high exchange rate then Naira tb jumps to 20 percent again ....the foriegn money will be bonds not tb for 2 to 3 years NB treasury bills is not only used in nigeria plus brazil,america ghana kenya and more than 100 countries for over 50 years ...it cant be stop cos it interwooven in the stability of financial system over 6 trillion naira pension fund is there

Alikote:
it for the dollar loan ,tb main purpose is to tackle liquidity in Naira/inflation ,provide short term loan 1 year its universal

the issued some last year over 500 million dollars @ 7 percent

they central bank cant starve out the private sector from borrowing from the loan term fund available cos we have just few billions available for long term borrowing if u encourage people to move fund to 3 year tenure in mass it will lead to collaspe of banking system and there ablity to loan to industries

chyima:


TB is a short term monetary instrument,hence it can't exceed 1 year

As stated by chyima, T-bills are short term debt instruments, and so the tenors remain 91, 182, and 364 days.
One of the things we need to be clear about as per this new policy is that the finance minister is only trying to adjust some of the nation's FISCAL policies, but as money market investors, what affect us more are the MONETARY policies which the CBN's MPC fixes.
If Emefiele had been the one who mentioned this, I would have been more bothered.
The nations sells about 5 trillion naira worth T-bills annually.
Now what the minister intends doing is cancelling about 1 trillion naira of these bills and replacing them with longer-tenor foreign currency bonds. so when some of the currently running bills mature, they won't be rolled over, instead proceeds from the bond subscriptions will be used to settle the holders of the treasury bills. Now, if the finance ministry was the one responsible for issuing T-bills, or if the sole aim of issuing the bills were to be for just fiscal purposes, then one would automatically anticipate a reduction of about 20% (about 1 trillion naira) in the amount of bills that get issued. But since the bills are an important tool through which the CBN achieves a significant portion of its monetary objectives, there are no guarantees that T-bills issues will reduce by up to 20%.

If this plan gets ratified by the National Assembly, I don't think the values of T-bills issued will reduce by more than 10%, and for FOREX stability reasons, the CBN is likely to yet keep rates at about16% for the longest tenor bills, and they'll probably consider a 100 basis points cut in the MPR at the next meeting. These will be to help reduce to some extent the private sector crowding out concern that the minister mentioned.

The forecast is for oil prices to remain under $70 for at least the next few years, and while it is true that there'll be dollar inflows from the bonds, there'll also be outflows from investors who would like to offset naira assets in preference for these dollar bonds. So the CBN will try to strike a balance.
What will eventually come out of this is that the CBN begins to bear more of the borrowing cost, while the FG bears less. This will however be a win-win for all. The CBN is able to maintain its forex stability, FG has less debt service burden, investors yet have enough incentives.
Please I'd like to get other viewpoints on this.

Why we are refinancing local debts with $3bn – DMO
Abdulfatai Ayobami Ibrahim / 12 hours ago


Everest Amaefule, Abuja

Refinancing Federal Government’s maturing local debts with $3bn external borrowing will not only crash the rate of domestic borrowing but also allow some borrowing space to the private sector, the Debt Management Office has said.

In a statement issued in Abuja on Friday, the DMO said borrowing from foreign sources to refinance the local debts would also allow the government time to repay the loans when the economy must have fully recovered from recession as well as when the economy must have been diversified.

The Minister of Finance, Mrs. Kemi Adeosun, had shortly after the Federal Executive Council meeting in Abuja on Wednesday announced the plan to borrow $3bn from external sources to refinance local debt of $3bn.

The FEC approval followed a proposal by the DMO for the refinancing of part of the country’s domestic debts, particularly Nigerian Treasury Bills, through the borrowing of $3bn.

The DMO said the move was informed by the lower dollar interest rates in the International Capital Market, adding that Nigeria was expected to borrow at a rate not higher than seven per cent while issuances of the NTBs in the domestic market were at rates as high as 18.53 per cent.

According to the office, external borrowing is cheaper by about 12 per cent and will result in substantial cost savings for the FGN in debt service costs.

The DMO said, “Besides reducing the cost of borrowing, the $3bn is expected to be raised for a tenor of up to 15 years, which is very long compared to the maximum tenor of 364 days for the NTBs.

“This move will effectively extend the tenor of the government’s debt portfolio. The longer tenor enables the government to repay at a time when the economy would be stronger and more diversified to meet the obligations.”

It added, “The reduction in the level of the FGN’s borrowing from the domestic market will result in a reduction in domestic interest rates and free up borrowing space in the economy, particularly for private sector borrowers.

“The $3bn from the refinancing will also represent an injection of foreign exchange into the economy which will boost the country’s external reserves.”

The DMO said that the approval of the National Assembly would be obtained for the proposed refinancing before implementation in line with the Debt Management Office Act 2003.

Copyright PUNCH.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

NL1960:


If you go on Wednesday, nothing for you because applications for TBs have to be submitted through the branches latest 2 days working before the TB auction date and Wednesday is the auction date. Just make sure you are at their doorstep on Monday morning as they open their doors and tell him to give a primary auction TB form to fill. Do not fill your own rate. Go with the bank rate.

I am grateful. I will go to d bank very early and demand for the form and see d reply they will give me. If they push me aside because they are always reluctant when you talk about TB, me too will angrily transfer my cash to first bank. shikena!

Gaddaffi121:
I am grateful. I will go to d bank very early and demand for the form and see d reply they will give me. If they push me aside because they are always reluctant when you talk about TB, me too will angrily transfer my cash to first bank. shikena!

If you had gone on Wednesday as he told you, he will now say that application has closed and then advised you to fix it till the next bidding date which is 2 weeks away.

NL1960:


If you go on Wednesday, nothing for you because applications for TBs have to be submitted through the branches latest 2 days working before the TB auction date and Wednesday is the auction date. Just make sure you are at their doorstep on Monday morning as they open their doors and tell him to give a primary auction TB form to fill. Do not fill your own rate. Go with the bank rate.

Thanks for the reply bro. I am also a newbie like the guy that asked question. I also will like in for the next primary auction. Please are you sure that it is on Wednesday that they will do the next auction?. If yes, I am rushing to the bank on monday

dipoolowoo:
Nigeria to Sell N62.4b Treasury Bills Next Wednesday
https://www.businesspost.ng/2017/08/09/nigeria-sell-n62-4b-treasury-bills-next-wednesday/

okochaik:


Thanks for the reply bro. I am also a newbie like the guy that asked question. I also will like in for the next primary auction. Please are you sure that it is on Wednesday that they will do the next auction?. If yes, I am rushing to the bank on monday

See the post above and the CBN NTB calendar below. I have a GTB 182-day TB maturing on 17/08/2017. So na una own TB money dem go take pay me on 17/08/2017.

NL1960:




See the post above and the CBN NTB calendar below. I have a GTB 182-day TB maturing on 17/08/2017. So na una own TB money dem go take pay me on 17/08/2017.

Thanks a lot bro, I will be on my way on Monday for my first time on TB. I really appreciate your help and all other people that gave me informations in the past. Una well done

RealityShot:

savings bond covers a long period..2yrs
crude price can rise, Buhari can win again, many things can happen ..thats why the rate for long term investments must be lower.

i hate to say it but ELECTION PLANS have started!
everything the govt does now must be tied to 2019 elections.

This dollar Bond will expire AFTER that election, ring a bell?

On paper, its a good deal..FIs dont have to convert to Naira again

You have said it all. This is really Nigeria Sometimes i do forget

Alikote:
yes naira dominated tb remains one year Max ,what will happen if the govt raise 3 bn dollar @ 7 it will convert it to naira to pay up interest on existing tb ,going forward the volume required by the federal govt will reduced it will be strictly for inflation control and liquidity ,but remember the govt will have to pay back the foreigners in dollars at maturity ,this will eat up foreign reserve balance position of Nigeria and make the naira loss value then inflation goes up due to high exchange rate then Naira tb jumps to 20 percent again ....the foriegn money will be bonds not tb for 2 to 3 years NB treasury bills is not only used in nigeria plus brazil,america ghana kenya and more than 100 countries for over 50 years ...it cant be stop cos it interwooven in the stability of financial system over 6 trillion naira pension fund is there

Thanks for this simplification......you , awesomej and chyima have done justice to this refinancing issue.

As long as TB remains within the usual tenure, we stand a chance. Rates May hover around 13 - 15%

Alikote:
yes naira dominated tb remains one year Max ,what will happen if the govt raise 3 bn dollar @ 7 it will convert it to naira to pay up interest on existing tb ,going forward the volume required by the federal govt will reduced it will be strictly for inflation control and liquidity ,but remember the govt will have to pay back the foreigners in dollars at maturity ,this will eat up foreign reserve balance position of Nigeria and make the naira loss value then inflation goes up due to high exchange rate then Naira tb jumps to 20 percent again ....the foriegn money will be bonds not tb for 2 to 3 years NB treasury bills is not only used in nigeria plus brazil,america ghana kenya and more than 100 countries for over 50 years ...it cant be stop cos it interwooven in the stability of financial system over 6 trillion naira pension fund is there

Thanks for this simplification......you , awesomej and chyima have done justice to this refinancing issue.

As long as TB remains within the usual tenure, we stand a chance. Rates May hover around 13 - 15% which is better than any FD.

awesomeJ:


As stated by chyima, T-bills are short term debt instruments, and so the tenors remain 91, 182, and 364 days.
One of the things we need to be clear about as per this new policy is that the finance minister is only trying to adjust some of the nation's FISCAL policies, but as money market investors, what affect us more are the MONETARY policies which the CBN's MPC fixes.
If Emefiele had been the one who mentioned this, I would have been more bothered.
The nations sells about 5 trillion naira worth T-bills annually.
Now what the minister intends doing is cancelling about 1 trillion naira of these bills and replacing them with longer-tenor foreign currency bonds. so when some of the currently running bills mature, they won't be rolled over, instead proceeds from the bond subscriptions will be used to settle the holders of the treasury bills. Now, if the finance ministry was the one responsible for issuing T-bills, or if the sole aim of issuing the bills were to be for just fiscal purposes, then one would automatically anticipate a reduction of about 20% (about 1 trillion naira) in the amount of bills that get issued. But since the bills are an important tool through which the CBN achieves a significant portion of its monetary objectives, there are no guarantees that T-bills issues will reduce by up to 20%.

If this plan gets ratified by the National Assembly, I don't think the values of T-bills issued will reduce by more than 10%, and for FOREX stability reasons, the CBN is likely to yet keep rates at about16% for the longest tenor bills, and they'll probably consider a 100 basis points cut in the MPR at the next meeting. These will be to help reduce to some extent the private sector crowding out concern that the minister mentioned.

The forecast is for oil prices to remain under $70 for at least the next few years, and while it is true that there'll be dollar inflows from the bonds, there'll also be outflows from investors who would like to offset naira assets in preference for these dollar bonds. So the CBN will try to strike a balance.
What will eventually come out of this is that the CBN begins to bear more of the borrowing cost, while the FG bears less. This will however be a win-win for all. The CBN is able to maintain its forex stability, FG has less debt service burden, investors yet have enough incentives.
Please I'd like to get other viewpoints on this.

Thanks for your down to earth explanation. Appreciated.

Guys on this thread are the best ever...

Lets suppose the Plan of the finance ministry sees the light of day. When will the National assembly ratify it, and when will this take effect on the NTB market.

I think these info would help us make informed decisions and salvage what we have now.

Answers please!

Good evening house,

I have 1 million naira to invest.
Please advise me on how to invest it in money markets : tb, fd etc etc.

Thanks

TBills
@Opomulero

Acme77:
TBills
@Opomulero

Thank you

Treasury Bills Market Closes Week Bearish
https://www.businesspost.ng/2017/08/13/treasury-bills-market-closes-week-bearish/

What is treasury bill?can someone explained it to me.and how do one get money to invest on it?

jom28gy:
What is treasury bill?can someone explained it to me.and how do one get money to invest on it?

The easiest way is just go and rob your bank. Then deposit the money into your bank account. Then apply for Tbills in the same bank..

Thank me later..

jom28gy:
What is treasury bill?can someone explained it to me.and how do one get money to invest on it?

get money ke?

TRADY IS THE BEST YOU CAN EARN BITCOIN!!!
Are you looking for where to invest your precious bitcoin!I think this is for you.
I opened my account for about a month and I have being recieving 5% daily to my bitcoin address without any stress!!!!I mean it's real.
All you need to do is to open an account with my referral address https://trady.io/?ref=sanzino and deposit a minimum of 0.001 bitcoin and start earning 5% daily!!!
You can thank me later!!!!!!hit the link https://trady.io/?ref=sanzino

Please guys can I buy with $$ denominations?

opomulero:


Thank you

You are welcome

Did I asked question for joke?if you don't know you keep quite.