₦airaland Forum

crownprince2017:
Sohsoh abi wetin be your name, you no allow us sleep when mecure was rising praising yourself despite people cautioning you, now mecure is coming down at the surface of the fy result we no see you again.

Can you now see the true leader between mecure and fidson now?

Sunrisepebble:
It’s my darling company since NASD days

KarlTom:
You missed the point.
It's MORE about making a request in the best possible way not really about being a 'giant'...

jckgroup1:
You see clearer standing on the shoulders of giants. Aj8 no doubt is a giant

Sunrisepebble:
When did Seplat join the Karltom index ?

Agbalowomeri:
When last did they generate any revenue? The shareholder don give up on the company

mikeapollo:
Forty percent (40%) is a huge, significant stake in any company, so no major decision should be taken without the knowledge, vote, consent, awareness, contribution etc. of such shareholder.

jckgroup1:
Have you considered the possibility of back door majority stake /take over of the coy.

mikeapollo:
It is better that way. It has legal implications.

feelamong:
Union Dicon Salt Plc has notified the Nigerian Exchange Limited and the investing public that it has been unable to establish contact with its majority shareholder, Aims Limited, which holds 64 million shares representing 40% of issued equity.

The company is urging the shareholder to immediately reach out through its Lagos office or official communication channels.

Source: NGX

Broveens42:
Let it be on record that a governor in Nigeria supervised these federal road projects
1. Owerri-okigwe (48km, completed)
2. Owerri-orlu (37km, completed)
3. Owerri- umuahia (57km, completed)
4. Owerri-onitsha (90% completed)
5. Owerri-portharcourt (ongoing)
6. Naze-nekede-ihiagwa road(ongoing)

zendi:
Chimex38, your man's reward for job well done.

If nobi even you be the man sef, impossible is nothing.

In which case, congrats.

https://businesspost.ng/economy/tinubu-picks-taiwo-oyedele-as-minister-of-state-for-finance/

Agbalowomeri:
How we go fit buy stocks in Iran at give away prices?

Bagwa:
Hope you gerrit 😀

freeman67:
Yes, It is an ongoing issaunce for 364 days. Which is to start counting from March 5th.

The major disadvantage to it is that it is not secured. Which makes it more risky than TB and some secured or asset backed one.

The second is the 10% WHT deduction. Which will make that 18.7088 later be about 16.8379 but then all other instruments like it are deducting too.

Lastly your Inability to access your funds till it matures except you completely liquidate at FMDQ or whatever it is listed, if listed. So you should be sure you will leave it till maturity if interested so astl not to street yourself.


That said, personally I would have invested in it if I had the funds but right now I don't. Majority of my funds are invested in other CP's. It's part of the ways I take my own risks.

CP is one of the underlying assets of MMF's. Infact majority of these high rates we see from some of these other Asset Managers are from the CP's, PN's and call deposits and co. Though it requires some due deligence too. The track record of the issuer, the arranggers and agents marking them, perusing their financials to see the possibility of your funds coming out, their ratings and so on are all important. I have personally invested twice in Daraju CP's and was paid at maturity without issues.

Like TB's, CP's are short term deposit too. Difference is that TB is issued by government and CP's are issued by companies. Government have a higher capability of paying back. However, the SEC, and the arrangers and agents will want the financial markets to be safe for investment by others and their brands too worth believing so they are the first to scrutinize the issuers ability before marketing it to customers and allowing the listing, if the issuer meets the requirements.

MMF rates are set daily meaning if your are enjoying 20% now, it's not guaranteed for the week. Any rate locked in on CP remains minus deduction of 10% WHT.

Also, most time the yield is always more that the rates you see. The yield there is about 23% and what you see and calculate is what you get no no deductions of management fees, handling charges by anybody.

If you were to do just the minimum of 5M for the 364 collecting your interest upfront will be about N839,589 after WHT and N1,032,000 after WHT if your decided to roll over with the interest. Divide these 2 sum above and see, either 365 for daily rates, 12 for monthly rates and 4 for quarterly rates and see what you then you can also compared with your MMF. So for me it's worth it.

For me also, I do them directly with the arrangers and agent when I do, so I don't incurr any extra cost other thank transfer charge and stamp duty from my end and WHT from their end at maturity.

Agbalowomeri:
What if the dividend is more than 25m

KarlTom:
This is the perspective I was viewing it from

mikeapollo:
But we criticized him for it, and he could not perform well because he lacked the courage to fire his family, friends and cronies from his region/ethnic group. That is the hallmark of nepotism....it breeds mediocrity, sycophancy, hero-worship, ''baba sope'' syndrome,
and ultimately failure.
The appointees would never be able to tell the president the truth when he is wrong because they would want to keep their jobs.

That is reason nepotistic govts fail all over the world. We saw it with Buhari and we also know this govt performance is unconvincing and shaky, unless we play politics and deceive ourselves.

unite4real:
WHT has always been deducted before dividend is paid. This is not new. has always been 10%. I hope it has not increased sha

bassdow:
Abeg where I go see the bolded. Might be interested. on what platform

nicestlady:
Please can someone help me clarify how the capital gains tax works? If I sell shares and take the sales proceeds to my bank account, will the cgt be deducted? What percentage? What if I don't take the money out but use the proceeds to buy more shares. What happens then?

Iamblessed8888:
Not a huge fan of commercial papers either. I rather do fixed deposit.

The company can default. Infact the bigger the company, the more the risk of default because they know you cant fight them. Imagine taking someone like Dangote to court. Even the judge will be laughing at you

kalu61:
I saw a commercial paper listed on Stambi IBTC app @18.7% pa
Daraju Industrial Ltd

What's your take with MMF rate drop from Stanbic?

emmasoft:
My Observations

I have taken time to read through different posts, and I’ve noticed that many of us assume certain things and treat them as logical conclusions.
Here are some important facts we should understand, regardless of personal opinions or assumptions.

I have said this many times and will repeat it: the safety of your funds is determined by the underlying assets, not the fund manager. All fund managers go through the same screening process and operate under the same SEC regulations. A Money Market Fund (MMF) is regarded as a low-risk investment not because of the manager’s name, brand, or history, but because the underlying assets are primarily government instruments, particularly T-Bills, and by regulation, fund managers cannot invest outside approved instruments.

In the structure and operation of a Money Market Fund, the parent company of a fund manager is not involved in managing investors’ money. The system strictly revolves around four key parties:
•The Fund Manager
•The Custodian
•The Trustees
•The SEC

Each has a clearly defined and independent role in safeguarding investors’ funds, and they are paid for the services rendered.

I once invested in a fund (not an MMF) where the fund manager encountered issues. Investors were transferred to another SEC-qualified manager. During that period, only fund administration was affected; the investments themselves remained intact. Once the new manager took over, dividend arrears were paid accordingly. That is the worst-case scenario I have personally witnessed.
In another instance (also not an MMF), the fund was sold, and investors’ money was returned.
Let’s not confuse personal perspectives with corporate regulations and the actual structure of the business.

Growing up, I used to believe only First Bank and Union Bank were truly safe because they were the most established and popular at the time. We referred to banks like GTB as “new generation banks” and questioned whether they would survive. Today, we know better.
So let’s not equate customer service quality, technology, brand popularity, or Assets Under Management (AUM) with the nature or safety of the fund itself.

There are many types of mutual funds, each with a different risk profile. Depending on your risk appetite, you can choose what suits you.
Regardless of interest rate or AUM size, all fund managers operate under the same SEC regulations. The SEC audits asset managers consistently, without discrimination based on size or structure. Whether a firm is independent or a subsidiary, it must meet strict regulatory requirements before being licensed.
A parent company has no obligation to customers of an asset management firm. In many cases, the parent company is simply another investor. Using the same resources as allowed by the SEC with a parent company doesn't make them answerable if anything goes wrong with the asset manager.

Additionally, custodians must meet strict regulatory criteria and must have no affiliation with the fund manager. This independence is intentional and serves to safeguard investors’ funds. Moreover, not all banks can serve as a custodian.

Let’s focus on facts, regulatory structure, and the nature of the underlying assets, not assumptions, and not just headline interest rates taken out of context.
If a fund manager offers a higher rate, that does not automatically make the MMF riskier. It may simply reflect how the underlying assets are positioned at a particular time within SEC guidelines. Investors can always review fund fact sheets to understand asset allocation and compliance.

By the way, managers that are considered “low rate” today were once the highest-paying in the industry, and that had nothing to do with whether they are subsidiaries of banks.

If you are uncomfortable with fund managers offering higher rates, that is perfectly fine; your decision may reflect your personal risk tolerance. If you are comfortable with higher rates, that is also valid, provided you have done your due diligence.
One thing is certain: MMFs are classified as low-risk investments because of their structure and regulatory framework, not because of the name behind them. If the extreme scenarios some people imagine were easily possible, MMFs would not be categorized as low-risk investments.

If this is a stocks/equity thread, it will be understandable when we focus on risk, but it’s not the case here. If MMF has this kind of wahala, then we should not refer to it as low risk, and then we'd better just go into stocks and face the risk at once with the attendant returns.

In summary, everyone should invest in what they are comfortable with. Going from Lagos to Abuja, one can decide to trek, take a bike, a vehicle, or fly; each will eventually get there, but...

Remember, making money without tears is our goal!

Hemanwel:
OP, you wey your account balance dey in millions, you wan go complain about an ordinary N5,300 deduction. Dem nor go take you serious, aje!

Neurotika:
You’re still pushing the same strawman argument I challenged from the start. I’ll reiterate it again: Brand history, corporate pedigree, “decades of consistency,” aren’t safety signals!. It’s a flawed logic not even supported by facts.

Read up on corporate failures and understand how these things actually work. Even the Reserve Primary Fund you said you researched on wasn’t rescued as a going concern…its parent refused to inject capital, the US Treasury guarantee explicitly excluded it, redemptions were frozen, and investors only got partial recovery after the fund was liquidated.

Besides, govt bailouts are usually selective and political…Nigeria is even a closest example to learn from. CBN literally called Skye Bank “too big to fail” in 2014, pumped in cash, then watched it collapse and get seized anyway. What of Heritage Bank? Other struggling banks kept getting the liquidity window but Heritage wasn’t fortunate and got liquidated outright.

Look, you can’t assume a parent will ride to the rescue unless you’re sitting in the boardroom reading their actual policy papers. The only public, verifiable window outsiders have is the latest CBN/SEC capital-adequacy returns, liquidity coverage ratios, and SEC risk filings.

Until you quote those current numbers to show Stanbic actually beats its peers today, talks of intertwined operations, flagship status, and brand protection is just hopeful narrative and cope. It’s a nice little story that doesn’t survive the facts. I’ve said enough on this.

Preator:
You dnt play in the capital market though. Yours is money market.

Per your earlier post, UBA does not really distinguish the deposits from others. However, in their FS, you will see a note covering how much they hold in money market funds from other institutions. Taking 2024 FS, you will see the money market deposit vs total deposit is quite low. Additionally, high liquidity, low loans ans advance vs deposit ratio makes them the custodian of choice.

Preator:
Oga, i am not sure which industry you work in o but i make a living, until recently, as a Business Finance advisor. Any deposit in a nigerian bank, including those held as a custodian have the same NDIC protection limit which is N5m. Anything after this you will get after the assets have been sold, if money remains.

There is no subcontracting. The Custodian acts as a banker to the fund manager same way they act as bankers to other individuals and businesses. The fund manager gives instructions to the custodian same way you give instructions to your bankers via transfer instructions.

Government needs money and your fund manager decides to lend. They instruct the custodian to move money to government. Government repays later to the custodian with interest. The fund manager instructs the custodian to credit the account of unit holders (investors) with their money and accrued benefits. I'm sure you've seen that your inflows come from UBA.

If UBA fails after government has remitted what it owes, na gobe be that. During winding up process, ordinary depositors are the last to be settled apart from the NDIC guaranteed limits.

You are free to select your custodian as long as its not your own group bank.

By the way, Stanbic has well over 2Trillion in AUM, only N5m of that is guaranteed by NDIC. You posit that the stanbic Group will settle that amount for reputation sake and without any regulatory obligations to do so? How much is their entire balance sheet in nigeria?

This is all hypothetical anyway since it's almost impossible for banks(DMB) to fail now in nigeria. Heritage will be the last one for a long while.

Neurotika:
I sometimes chuckle to myself when I read some arguments put forward in this thread. It just shows you know nothing about accounting and finance. A huge AUM tells us nothing about the safety of a fund manager…it simply indicates the scale of client money under its care. That money belongs to investors, not the firm. It represents a fiduciary liability that generates fees, and in times of stress it can quickly become a burden if redemptions begin to feed on themselves.

Judging safety by the size of AUM is no more reliable than judging a bank by the size of its deposits…both are liabilities, not capital. Anyone that is savvy with US market will remember what happened to The Reserve Primary Fund in 2008 during the financial crisis. It oversaw tens of billions in assets, yet when liquidity pressures mounted it still broke the buck. Scale gave it no protection once confidence and market liquidity vanished…

The same applies to the claim that a large parent company guarantees safety. Subsidiaries are separate legal and operational entities. A parent will step in only when doing so serves its own strategic or reputational purposes. There is NO automatic obligation. Corporate groups regularly sell or close businesses the moment continued ownership no longer makes economic sense.

At the end of the day, real financial strength is determined by capital adequacy, strong corporate governance, disciplined liquidity management and rigorous risk management…not by headline AUM figures or the prestige attached to a corporate name.

I’m also dropping this here for future readers with little knowledge of how the financial system works. Misinformation is a dangerous virus we should always frown upon.