₦airaland Forum

wisdom77:
Please who knows the next auction for Zenith Bank.

Same date for every bank; should be Wednesday, 13th February. Best to submit Monday preferably, but before 1pm Tuesday.

However, if you are interested in Secondary Market, you can walk into a branch with a minimum of =N=1million and invest in TBills same day. The rates they had yesterday ranged from 8.5% for 73 days to 14% for 353 or 360 days.

obashiakpu:
Please what is the difference between primary and secondary market in Treasury bill...

Check out my detailed answer in a recent page:
https://www.nairaland.com/878880/treasury-bills-nigeria/679#75118802

obashiakpu:
...For a small amount like 200k, which is better?

For small amounts, the flat deductions at the start make a bigger difference. You avoid some/all of (those commission fees & 5% VAT) in the Secondary Market. Without doing the math, we suspect Secondary Market will give higher net yield/interest if you wanted tenures close to 91 or 182 days. However, depending on which bank you use, Primary market might give better returns for a duration close to 364 days.

If you have to wait 2weeks for the next Primary market, then a same day Secondary market will likely give a better return. For example, one scenario is you lose a Primary market bid and your money sits in limbo (aka current account) for 2weeks till the next auction:

> say your bank's bid for 364days was 14.85%, but you missed that
> you might have gotten 14.85% in Primary, but the next day it could be sold for 14.5% in Secondary
> if you wait for the next primary auction, even if you get 14.85% again, your money has not earned (14.85%p.a. * (2weeks / 52weeks.per.year)) = 0.57%p.a. in that time
> this is same as you accepting a Secondary market rate of (14.85 - 0.57) = 14.28% the day after the primary auction you missed
> you would have earned more accepting 14.5%, even 14.3% in the Secondary market

Note: our assumption above is your N200k did not earn anything for the 2weeks before the next primary market auction. The calculations become more favorable for Primary market if you had your money earning a high rate during the 2week wait; e.g. in a top savings account, even better if you have a reliable Money Market Fund you have held for the minimum holding period and can push money in/out quickly and at no cost/charge.

In summary, if a long wait is involved till the next auction and/or your bank has some deductions that apply to primary market only (not secondary), most scenarios for N200k likely have Secondary market earning you higher, and with less stress.

moneywoman74:
First Bank said that their minimum
amount for treasury bill is #1m, was there this morning.

We are not sure if individual branches have their own minimums. We doubt this. If you are interested in investing less than N1m, send an email to firstcontact@firstbanknigeria.com; they should confirm it is N100k and help put your request through).

Nnamz:
Ping Express is not in the CBN list. Should it be trusted?

No. 11...but we have no experience with them.

dejiotus:
...Anyone with a more recent info on Stanbic minimum amount for the secondary market can update the house. I am aware also that the minimum amount varies from bank to bank

Some Commercial Bank Secondary Market minimums:

N100k
Access, Diamond, Ecobank, FCMB, FirstBank, Heritage, Stanbic IBTC, Sterling, Union, Wema, etc. (might be more)

N500k
GTB (however, members/gurus on this thread argue it is N100k), Keystone, etc.

N1m
Fidelity, Providus, UBA, Zenith, etc.

N250m
Unity

We believe Skye/Polaris will probably be N100k too, need to confirm...

Nnamz:
...sorry for long post lol.

No shortcuts in proper analysis. Thanks for the comparison!

Pascopele:
of January 2019?

Yes, 23/01/19

234ng44uk:
Azimo? I find them disgusting. Their documents verification sucks and their rate isn't even competitive enough. Try exchange4free instead. Thank me later.

Thanks 234ng44uk ...Our money fell for Exchange4free first, and we cannot complain; we have had good service experiences with both. But, speaking only of rates, Azimo currently has the Abokifx touch. There is also https://aftabcurrency.net, #1 on that aging CBN list: [url]https://www.cbn.gov.ng/Out/2016/CCD/Press%20Release%20on%20Illegal%20IMTSOs.pdf[/url], but we have no experience with it.

Nnamz:
Doesn't work for Canada. I also use world remit. Right now it's going for 265 to 1 CAD

Thanks Nnamz...I should have noted it was built for Europe. Considering the rate you mentioned, you can compare their offer to the following:

1. https://www.transfast.com/
2. https://www.ping-express.com/send-to

Unfortunately, we have no experience with the above, but believe they were on the approved CBN list years past now: [url]https://www.cbn.gov.ng/Out/2016/CCD/Press%20Release%20on%20Illegal%20IMTSOs.pdf[/url].

Teejah80:
...which one is advisable,91,182 or 364 days...Whenever I want to do anything in Naija,I usually buy naira from wordremit...

2 things:

1. Rates for 364 days are typically the highest. Considering you get the interest upfront, you can compound your reward and get the true yield by choosing to reinvest the interest. Plus, you only get charged certain transaction/processing fees 1nce a year, as opposed to 4times with 91 days and 2wice with 182. So, if you are sure you do not need the funds for that long, 364 days is best for earnings.

2. Compare exchange rates you will get from https://azimo.com/en/ to your usual worldremit on your next transfer.

Pascopele:
are there no lower days or duration

On that day (last Wednesday, 23rd), tenures were as low as 50 days @ 11%p.a.

purityval:
...overtime I haven’t seen anyone investing with zenith bank or talking about their rates.

Is it that Zenith doesn’t perform...

Doubt not...considering secondary market, we know on 23rd Jan Zenith had tenures and rates pretty close to the last primary auction stop rates for 91 days (11%) and 182 days (13.1%), including:

92 days: 11.5%
176 or 190 days: 13%

You might find better for those tenors, but these are competitive!

Chuksgeo:
Hi I am interested in the 91 days term , please how can I get involved, I also own an account at GT bank,
thanks.

You are lucky then, as tenures close to 91 days are widely available in GTB and other banks, and you do not have to lose out on rates as they will be close to or even better than the last 91 days primary stop rate (11%, https://www.cbn.gov.ng/rates/govtsecurities.asp). There are 2 ways, taking GTBank as our example:

1. Primary Market: there are typically 2 auctions a month held every other Wednesday. Go to branch or email your account officer or gtconnect@gtbank.com for help if you cannot make it today, preferably by 1pm (giving allowance for waiting/queuing), as the next auction is on 30th Jan. It is not clear what their minimum is as you might be told N500k, but some customers here argue it can be as low as N100k. This amount and deductions need to be in your account for the ready. Your email should include the duration and amount you are interested in investing.

2. Secondary Market: as before, ensure your account is funded, then go to branch or email your account officer and request available tenures and rates for the day. You should be able to choose and get debited same day. This is typically available 10am to 2pm (1pm to be safe) on working days.

PS: In a branch, you might need to ask for Treasury (Bills) or Currency Trading desk/unit if helpdesk think you are speaking another language. If they cant help, or insist Fixed Deposit is the best thing since sliced bread/pure water, contact your account officer or GTConnect https://www.gtbank.com/help-centre/contact-us.

chigozienan:
pls how is TB with access bank as in rates. They are my banker so want to know if I can a good deal with them

Depends on the Tenure you have in mind, and whether you are asking about Primary or Secondary Market.

For example, assuming Secondary Market, we know AccessBank offered 13.25%p.a. for 309 days on 23rd Jan. However, for tenures above 300 days a number of other banks had rates 14%p.a. and above. Since the last primary market auction held 16th Jan, the top 5 we saw included rates from GTB (seen on this thread), Wema, UBA, Union and Stanbic.

Some examples:
Wema 17th Jan - 273 days @ 14.83% (Wema typically offers many tenors)
UBA 24th Jan - 252 days @ 14%...350 days @ 14.5% etc. (2 others exist in that range)
Union 28th Jan - 255 days @ 14%...353 days @ 14.25% etc. (2 others exist in that range)
Stanbic 28th Jan - 263 days @14.1%

Always verify with your bank before jumping ship as rates move daily. However, it's good to know your options...with TBills, it is ok for your money to be a fickle friend, all roads lends it to the same FGNigeria.

eghos24:
Please what's the difference between primary and secondary?
I have a million naira to invest. How do you advice I go about it.

There are a few:

Amount
Primary - 50m to participate directly, but banks pool funds so accept as low as N10k (UBA etc.)
Secondary - 250m to participate directly, but banks pool funds so accept as low as N100k (Access, Diamond, Ecobank, FirstBank, Heritage, Stanbic IBTC, Sterling, Union, Wema, etc.)
You - have N1million, I believe most banks, if not all, accept this or less for either Primary or Secondary.

Tenor
Primary - 91, 182 and 364 days
Secondary - 7 to 364 days
You - want less than 91days, or any duration less than a year but not fixed at 91, 182, or 364, then you will have to go secondary. Note TBills mature typically every other Thursday, so you can pick an ideal date for getting back your capital with Secondary market which gives more flexibility.

Availability
Primary - typically sold 2wice a month, every other Wednesday and becomes effective Thursday
Secondary - available as much as every working day, effective same day
You - dont want your million earning 4.2-6% or less before the next auction on 30th Jan, and you dont have a high earning suitable MMF you can pay into and withdraw from in a timely fashion, without charge, then consider investing secondary instead.

Cost / Deductions at start
Secondary can be just marginally/negligibly cheaper as at least some banks do not charge you Commission Fees, and 5% VAT on (Transaction/Processing Fees & Custodian/Safe Keeping Fees).See post by teeielts360 on page 676 https://www.nairaland.com/878880/treasury-bills-nigeria/675.
You - have a per-minute sim, and cry when you hang up a call & notice you had just exceeded the minute mark by 3seconds. Or just believe every little helps. Then, for some banks 14.2% for 364 days in secondary market is better than 14.2% for 364 days in primary market. E.g., you might not be charged the N100 commission fee in the secondary market.

Risk should be same as ultimately, the FGNigeria owes you, is the issuer. Not the bank, so should be one of the lowest risk investment as FGNigeria also supplies the local currency/Naira on which tbills is based.

LadyBeee:
please which bank is offering 15%?

If you are interested in the Secondary Market, the most generous rates we typically see come from Wema Bank; they had 14.83% for 273 days on 17th, a day after the last primary auction. More recently, 2 days ago (24th), UBA had 14.5% for 350 days.

It is currently more common to find 14% rates for 300-360 days. Before the auction, it was closer to 14.25-14.4% for that same duration. Maybe banks expect rates in 30th January's auction to come in lower than the 16th...

cooldudeng:
Please always do your DD before going into any investment vehicle

My comment above is not a recommendation but based on my personal experience

Also, Sterling bank has not come out to say they own it. However, attached is a survey I was sent after I exited my investment

Just like the appearance of Sterling in that survey, I-Invest is now listed at the bottom of Sterling's investment page: https://sterlingbankng.com/personal/investment/. That still does not mean they explicitly declare ownership.

234ng44uk:
Exactly what I'm saying. Highest fixed deposit for that amount that I know if is Diamond HIDA at 4.5%. How is that better than even the worst treasury bills out there?

Best fixed deposit for NGN1million we know of is 10.5%p.a. from Ecobank (30 - 90) days. However, like you say, it does not beat the tbills rates available, especially as it falls to 9.45%p.a. after 10% withholding tax is deducted.