₦airaland Forum

Does anyone here know if there is a section on this forum dealing with Commercial Papers? Drop me a link if you do pls

Acidosis:
Banks (like GTB) are advertising and begging customers to take loans at ridiculous rates based on CBN directives. Now a larger part of this loan ends up in TBills. You see it makes no sense?

The essence of loans I believe is to encourage new startups and improve business processes. Sadly, many of these banks like GTBank give loans at 1.75% rate only to Salary earners (with salary account). Question is, how can a salary earner do business or encourage startup?

This directive seems like a 'cold war' between CBN and Banks, each trying to play smart.

By denying individuals opportunities to invest in TBills, salary earners will avoid loans, those taking the loans will divert to real businesses and startups (like franchise, agrictechs, fintechs, etc.), and banks will be forced to consider entrepreneurs without a salary account.

Risk..risk...risk.... a salary earner has a lower risk profile though one just does not understand how it works to be encouraging him/her to be distracted. But hey you are right. This over-regulation needs a further looking at... and there are loads of ideas to offer

Viqtour:
Good day house.

I did my T bill on December 28th 2018 for 300 days and it's expected to mature today.

I used First Bank and they usually credit me before 10am of the maturity day.

However, I have not been credited till now. Please has any body experienced this recently with First Bank and is it possible I don't get paid on the date of maturity?

Today has not ended. When you get alert, come and pay your dues here for taking up our time.

crowntoro:
I would like to invest in T-bills, Is it advisable I wait for primary market which is next week or I do for secondary market by going to the bank today? And please what's the rate for first Bank in the last primary market auction?

To be honest sir, the decision is yours. Secondary market stems from primary investors calling up funds and the financial institution swapping the remainder of the portfolios. Considering these are historical placements, the interests may be higher but expectedly, the bank will take its own margins, offer you yours and cancel off any costs of the swap.. so you may very marginally find it close to what current primary market rates are. Truth be told, banks are in it to make money and you have little choice but to take what you are given. So in answer to your question, when you see the rates and tenor, you will know.

And to your second question, call up FBank early in the morning by 10am and you will get a secondary rate for that day

Boyhood:
Ok now I understand you better.. and from here, it's obvious to you that a leap year plays NO part. did you calculate their charges? commission, custody fee, transaction fee etc?? If you did, what did you arrive at? or better still if you have the certificate, follow every Kobo recorded there and see where the short fall lies.

Just the discounted value sir. Excluding commission, custody fees and transaction fees. These charges were added

kryptem:
He means whether normal years of 365 days or leap years of 366 days, T-Bill subscription is 364 days, which is lesser days in normal years or leap years; the total days for T-Bill sub are captured within for both!

This does not answer the question.
Let me break it down. Assume you invested N1m Oct 01 for 181days, at say 10% which ends 31 Mar 2020. 2020 being a leap year. How would the discounted value be calculated? I would assume this should be N950,410.96 but a bank calculates it as 952,944.08.. which is like N2,533.12 extra taken by the bank. How does this work out? 181 is 181days.. what part does a leap year have to play in this?

Assistance anyone?

Has anyone here invested in TBills for a period which crosses into a leap year? Do you know how the discounted values are calculated?

atigro:
How does 15.80% for 92 days firstbank today secondary market sound like? Good or bad?

Best offer of the week. Go ahead and offer thanksgiving!

Todays CBN OMO rate

18.6% for 321 days

You cant beat that..could you?

Mascotlawman:
Please what will be the interest rate of 500k for three months? I really want to go into this TBS ,as shares is not paying me anymore. And which of these banks will give me a better rate, GTB, ECOBANK, UNION BANK, Fidelity BANK? I will appreciate ur response.

Did you mean to type "interest" and not "interest rate"? This is why you are not getting an answer.

If you use the cut off rate at the most recent auction of 13.799% as your guide, assuming your bid was successful- In 91 days, you will earn roughly N17,200 as upfront interest.

Hope this helps!

gmcb:
Good day all, How can someone be part of the Open Market Operations. Saw on CBN website that there was one last Friday 3rd February. Please how do I ensure I do not miss out of the next one? Where should I look out for the next one. Thanks for all your contributions here.

Yes you can. Talk to your bankers and they should be able to guide you. You may be required to provide a standing instruction and keep your account funded. There is no timetable or pre-warning - so just look forward to waking up one morning up and see your account debited without warning.

zamirikpo:
see updates.....above........so rates would certainly remain dsame.

In other words, the economy continues to run on autopilot

samkay12:
Very good question; given the much smaller rates you get in Europe.
To be honest it is a lottery.
You could do this and the exchange rates will be even worse when your TB matures.
For instance someone who had done what you wanted to do a year ago would have lost a lt of money.

Say £ is 590 and you invest £1000 = NGN590,000 x 18.5% (1 year TB)
If the £ goes up to 690 then it has been a waste of your time
If it goes over 700 then you would have lost money

If you feel the exchange rates will be much much better when your tenor elapses then yes; Otherwise don't do it.

Also consider the fact that you may have to go to Black Market to get your forex (or your money getting stuck in Nigeria due to scarcity);
So you really are depending on things getting much better for this to make any sense to do.

Thats My 50kobo

Look at the big picture in the Nigerian context. If you saved the naira equivalent of $1000 in your Nigerian bank account, and the Naira got devalued in 364 days time, you'd be worse off - and probably get $600 worth of your savings (even with interest included). However if you invested at a good rate in TB for the same period, you will be most likely to be able to achieve the same or higher net present value of your funds in 364 days. If the economy picks up, you are better off. If the economy doesnt, you can still afford the same value locally like when you started off. So see it as a Nigeria-centric investment; and a wiser option to save

Can someone help out with this question please - If the CBN cut-off rate is say 14% and your bank bid at 13.9% but still won, what rate will your bank offer you the Tbills - 13.9 or 14.0?

Anyone traded in the secondary market this week?

freeman67:
Did anybody submit a bid for 182 day with stanbic that went through?

I applied for 182 days...I ticked the yes option for them to bid on my behalf as against 17.2.% that I had in mind and it didn't go through.

The option they had for secondary was about 195 days for 14.9 which way below what CBN gave out...

I did. I had 17.5 in mind for 182 but most unlike me I decided to let them have a go - big mistake - they lost woefully and had the temerity to turn around and offer 15% for 195 in the secondary market - I never felt so insulted.

samgborigi1:
I am a married guy who got married 3 years ago. I never had premarrital relationship. I had a couple of girl friends before I got married but no sex involved because of my christian background. I have a small slim penis which I wish could be longer fatter and bigger. Most of the time within 3-5 min already come. Many a time my wife will beg me not to come but before you know it I have come. I pity her most of the time. I want enjoy sex fully. Pls I need help. What can I do? I need practical advice. Which drugs or what can you guys recommend?

I hope you found a solution that worked for you already. This is a marriage - your wife and you will to work on it and become used to each other's bodies. I can sense from your post that there is still a bit of shyness between you both. The size of your member makes no difference - rather its how you use it. Most young men are brainwashed by what they see in pornography - marriage is different.

For a start, your wife and you need to engage in extended pre-intimacy. let her give you a BJ as part of the mix and help you come first. After that session rest a bit and continue into the next session with handling followed by penetration. You will be less likely to come quickly a second time than in the first. Try this and adjust to whatever sequence works for you both - ultimately what you are comfortable with is what should make your marriage work for you both. Best of luck and dont thank me!