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Treasury Bills In Nigeria - Investment (5) - Nairaland

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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)

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Re: Treasury Bills In Nigeria by feelamong(m): 5:42pm On Apr 20, 2012
http://af.reuters.com/article/nigeriaNews/idAFL6E8FK5Y220120420

LAGOS, April 20 (Reuters) - Nigeria plans to issue 140.61 billion naira ($894.86 million) in treasury bills ranging from 3-month to 1-year maturities at its regular monthly debt auction next week, the central bank said.

The bank said it would auction 34.88 billion naira in 91-day paper, 45 billion naira in 182-day bills and 60.73 billion in 364-day bills next Thursday.

Nigeria, Africa's second biggest economy after South Africa, issues treasury bills regularly to reduce money supply, curb inflation and help lenders manage their liquidity.

Yields were lower across the board compared with the last auction, while dealers anticipate strong demand at this one on the back of continued interest from offshore and local institutional investors. ($1 = 157.13 naira) (Reporting by Oludare Mayowa; Editing by Tim Cocks)
Re: Treasury Bills In Nigeria by ogedanny: 3:09pm On Apr 21, 2012
Investing in foreign stocks is the best...

1 Like

Re: Treasury Bills In Nigeria by feelamong(m): 9:56am On Apr 23, 2012
http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/36346-banks-seek-safety-in-treasury-bills-instead-of-lending

A BusinessDay study shows that while banks that have so far released their 2011 results grew lending marginally, a good number of them are pilling up investments in Treasury Bills. For instance, GTBank invested N256.81 billion in Treasury Bills for the financial year ended December 31, 2011, 63.27 percent up from N157.29 billion in 2010.

The bank’s loan book increased only by 20.49 percent, up from N593.4 billion to N715 billion the previous year.

First Bank invested N187.45 billion, a 688.93 percent increase compared to N23.76 billion in 2010. The bank grew lending by 9.32 percent, from N1.12 trillion to N1.23 trillion. Diamond Bank bought Treasury Bills worth N94.58 billion, as against N57.3 billion the previous year, indicating a 65.06 percent increase. It increased its loan book by 10.48 percent from N307 billion to N339.2 billion
Re: Treasury Bills In Nigeria by feelamong(m): 9:57am On Apr 23, 2012
feelamong: http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/36346-banks-seek-safety-in-treasury-bills-instead-of-lending

A BusinessDay study shows that while banks that have so far released their 2011 results grew lending marginally, a good number of them are pilling up investments in Treasury Bills. For instance, GTBank invested N256.81 billion in Treasury Bills for the financial year ended December 31, 2011, 63.27 percent up from N157.29 billion in 2010.

The bank’s loan book increased only by 20.49 percent, up from N593.4 billion to N715 billion the previous year.

First Bank invested N187.45 billion, a 688.93 percent increase compared to N23.76 billion in 2010. The bank grew lending by 9.32 percent, from N1.12 trillion to N1.23 trillion. Diamond Bank bought Treasury Bills worth N94.58 billion, as against N57.3 billion the previous year, indicating a 65.06 percent increase. It increased its loan book by 10.48 percent from N307 billion to N339.2 billion

This is why I insist that TBills are the best kept secrets of Naija Banks......They tell you to give them fixed deposit at 8% and go around to invest the money in TBills for about 14-17%p.a

5 Likes

Re: Treasury Bills In Nigeria by Nobody: 12:25am On Apr 24, 2012
@Feelamong, does one stand to anything if perhaps Nigeria splits up before the maturity date of an investment he made on the Bills?
Re: Treasury Bills In Nigeria by feelamong(m): 8:21am On Apr 24, 2012
kay-one:
@Feelamong, does one stand to anything if perhaps Nigeria splits up before the maturity date of an investment he made on the Bills?

Hmmm.....If Naija splits today then everything will be looked once more cos like in every split..All assets and liability will be shared among the newly created entities.......

2 Likes

Re: Treasury Bills In Nigeria by Nobody: 11:47pm On Apr 24, 2012
feelamong:

Hmmm.....If Naija splits today then everything will be looked once more cos like in every split..All assets and liability will be shared among the newly created entities.......
Is it your kins men that wants to split it!p?

2 Likes

Re: Treasury Bills In Nigeria by jamace(m): 6:20am On Apr 25, 2012
blink182: Is it your kins men that wants to split it!p?

grin The guy is thinking of investment risk with worst case scenerio in mind. grin The guy could be Noah's (biblical) eldest son o grin

2 Likes

Re: Treasury Bills In Nigeria by feelamong(m): 8:04am On Apr 25, 2012
blink182: Is it your kins men that wants to split it!p?

My brother ..when we were in the SSS we were taught to look around for any possible risk before embarking on any operation....

So its good he is looking at that risk although it is very unlikely to happen..

3 Likes

Re: Treasury Bills In Nigeria by balogunsam(m): 8:52am On Apr 26, 2012
ahh!!! SSS ke Thats scary ooo....soooo u were once...mmmm.. Anyway,the delaing house u mentioned reccomending,whats the lowest amount they accept one to invest for the 91 day period. Also,do u recommend i just walk into a bank and ask to invest in Tbills or its better to deal with licensed dealing houses like the ones u recommended? Thanks. Good job!
Re: Treasury Bills In Nigeria by jamace(m): 12:51pm On Apr 26, 2012
balogunsam: ahh!!! SSS ke Thats scary ooo....soooo u were once...mmmm.. Anyway,the delaing house u mentioned reccomending,whats the lowest amount they accept one to invest for the 91 day period. Also,do u recommend i just walk into a bank and ask to invest in Tbills or its better to deal with licensed dealing houses like the ones u recommended? Thanks. Good job!

Minimum to invest is N100k but some banks have raised theirs to a minimum of N1.0M, to scare away poor people from disturbing them sad sad.

I recently discovered that banks are reluctant to sell TB to people like us. I was in 2 different banks and I must confess that the reception became cold immediately I said, "I want to buy Treasury Bills". In both banks the receptionists told me "pump and play" that they dont gain when people like us invest in TB instead of savings or fixed deposits. Ammagedon!! shocked shocked

Govt should please wade in o. These banks dont want low income earners to survive. Is this the epitome of capitalism?

2 Likes 3 Shares

Re: Treasury Bills In Nigeria by feelamong(m): 1:03pm On Apr 26, 2012
jamace:

Minimum to invest is N100k but some banks have raised theirs to a minimum of N1.0M, to scare away poor people from disturbing them sad sad.

I recently discovered that banks are reluctant to sell TB to people like us. I was in 2 different banks and I must confess that the reception became cold immediately I said, "I want to buy Treasury Bills". In both banks the receptionists told me "pump and play" that they dont gain when people like us invest in TB instead of savings or fixed deposits. Ammagedon!! shocked shocked

Govt should please wade in o. These banks dont want low income earners to survive. Is this the epitome of capitalism?

You are absolutely correct.. Tbills is one of the best kept secrets of banks..Infact when I was working in a bank The MD asked us not to mention it to clients......they take ur money at 2-5% and then go ahead to place it in Tbills at 14-16%!

The people I deal with actually insist on N1M minimum........ Although over time I now give them N500k once in a while and they take it! (Relationship sake)
Re: Treasury Bills In Nigeria by efismikoko(m): 1:43pm On Apr 27, 2012
Feelamong pls can u help me I want to buy tb my acct office is not even redi to talk wit me cos she's enjoying my fixed deposit how do go abt it pls my email add is mickgare@yahoo.com tanks God bless u
Re: Treasury Bills In Nigeria by feelamong(m): 2:17pm On Apr 27, 2012
efismikoko: Feelamong pls can u help me I want to buy tb my acct office is not even redi to talk wit me cos she's enjoying my fixed deposit how do go abt it pls my email add is mickgare@yahoo.com tanks God bless u

I have replied you now..
Re: Treasury Bills In Nigeria by feelamong(m): 2:19pm On Apr 27, 2012
http://af.reuters.com/article/nigeriaNews/idAFL6E8FR66220120427

LAGOS, April 27 (Reuters) - Nigeria sold a total of 140.61 billion naira ($893.33 million) in treasury bills ranging from three months to one year, with yields fell across the board after a heavy subscription by local and offshore investors, the results of the auction by central bank showed.
Nigeria sold 34.88 billion naira worth of the 3-month bond at a return of 13.84 percent, lower than the 14.0 percent same tenor paper was issued at the previous auction, while it sold 45 billion naira of the 6-month bills at 14.59 percent, compared with 14.94 percent at the previous auction.

The central bank issued 60.73 billion naira worth of 1-year paper at a yield of 14.64 percent, below the 15.07 percent at an auction early in the month.

"The yields were generally lower that market expectation because of he projection of higher inflation figure for the month of March," one dealer said.

However, demand for the paper rose significantly to 540.68 billion naira, its highest in years, compared with 474.51 billion demanded by investors at the April 13 auction.

Nigeria, Africa's second biggest economy after South Africa, issues treasury bills regularly to reduce money supply, curb inflation and help lenders manage their liquidity. ($1 = 157.40 naira) (Reporting by Oludare Mayowa; Editing by Tim Cocks)
Re: Treasury Bills In Nigeria by balogunsam(m): 7:12am On Apr 28, 2012
feelamong:

You are absolutely correct.. Tbills is one of the best kept secrets of banks..Infact when I was working in a bank The MD asked us not to mention it to clients......they take ur money at 2-5% and then go ahead to place it in Tbills at 14-16%!

The people I deal with actually insist on N1M minimum........ Although over time I now give them N500k once in a while and they take it! (Relationship sake)

ah! Its still the same thing. Even d dealing houses evidently arent so different from d banks..since dey accept minimum of 1M too. Arent there people who accept 50-100k I'm just a young man who just finished d university....cant i start investing with just as little as that? If i had the funds,thats the kind of business i'll start...a dealing house for low income people...everyone shld av a chance...so much for Tbills.
Re: Treasury Bills In Nigeria by fromacho: 5:00pm On Apr 28, 2012
Filling station for lease in Port Harcourt. N5m per yr..minimum of 5yrs. For more info contact 08028221720
Re: Treasury Bills In Nigeria by ayandee: 3:34pm On Apr 30, 2012
Feelamong, i'm interested in treasury bills. i've sent u a mail
Re: Treasury Bills In Nigeria by feelamong(m): 3:49pm On Apr 30, 2012
ayandee: Feelamong, i'm interested in treasury bills. i've sent u a mail

bros.. i no be bank or discount house o!!!but anyway sha i don reply you !
Re: Treasury Bills In Nigeria by Nobody: 6:51am On May 03, 2012
@ feelamong. Pls I'll like to invest 700,000naira on treasury bills. I just made the money last week and I want to put it into some form of investment before I spend is anyhow . Pls help a brother out on how to go about buying this treasury billls. Pls
Re: Treasury Bills In Nigeria by feelamong(m): 6:30pm On May 03, 2012
edwrad50: @ feelamong. Pls I'll like to invest 700,000naira on treasury bills. I just made the money last week and I want to put it into some form of investment before I spend is anyhow . Pls help a brother out on how to go about buying this treasury billls. Pls

send me mail to feelamong@gmail.com and i will give u his contacts....
Re: Treasury Bills In Nigeria by Dextra(f): 9:29pm On May 03, 2012
All this stuffs sound like jargon to me, but I am interested in anything that will yield me income cos I got some money to invest! I wish someone can make it clearer to me.

1 Like

Re: Treasury Bills In Nigeria by feelamong(m): 10:04pm On May 03, 2012
Dextra: All this stuffs sound like jargon to me, but I am interested in anything that will yield me income cos I got some money to invest! I wish someone can make it clearer to me.

just take a walk to ur bank and tell ur bankers that you want to invest in treasury Bills...sikena!
Re: Treasury Bills In Nigeria by Nobody: 2:20pm On May 04, 2012
We are at it again. I mean the shenanigans that characterized the stock market pre-2008 which eventually led to its collapse is here again but this time the interest in Treasury Bill. If this forum members will remember, the zeal, the interest, the hype which is being exhibited in threads here are of the same magnitude that greeted the capital market before the great crash. Those who burnt their fingers have not learned any lessons by the asking the relevant questions. Questions such as: why did the market crash? why did people lose so much money? what went wrong? how could it have been done better. A little insight: Most investors burnt their fingers because they did not understand the workings of the capital market, hence it was very easy for market operators and the banks who had the money to goad gullible investors through manipulation and the creation of burble prices into buying the shares of otherwise unprofitable entities. Thus, people rushed to buy the shares of a company with little or no fundamental simply because the share price is going up and they expect to make returns in excess of 100% within a few weeks. They pay less attention to the fact that the capital market is long term market primarily driven by economic and industry based fundamentals.

In essence, we should ask the question: why is Treasury Bill offering attractive yields at this time? Is this attraction sustainable? Is what is happening in the money market in line with tested fundamental finance theory?

Nigerian Treasury Bills yields today are the most attractive in the world, except perhaps Ghana. In simple finance theory, the higher the risk in an investment, the higher the return. The reverse is also true, i.e the lower the risk, the lower the return. Treasury Bills and other Government instruments are regarded as risk-free instruments in that it is very unlikely that the investor will ever lose his/her money but at the same time, the yield is usually very low compared to risky assets such as equities.

So when government securities is offering not only a safe heaven but also the most profitable investment window, it is a red flag on the whole equation of the economy. Space will not permit me to go into the specifics, but I will like to sound a warning, that if your interest in TB is the attractive yield be careful because the dance will soon be over as the economy picks. But if you are investing because you are not prepared to take risk, go ahead as you are certain your wealth is preserved. That is the approach the banks are taking by investing their money in TB because the conditions for lending at this moment are not right after they had destroyed the capital market with the same game they are playing with government securities now. But the game is about to change! Just watch out.

2 Likes 1 Share

Re: Treasury Bills In Nigeria by yogun(f): 4:20pm On May 04, 2012
Na wa ooo

what then is the safest and most legit investment in this country

2 Likes

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