₦airaland Forum

KarlTom:
Who will help me appease the gods of DANGSUGAR

KarlTom:
I don comot eye from that side.
When the ₦4tn bond is officially announced, it will move...

Agbalowomeri:
Hallelujah

KarlTom:
We have heard you loud and clear.

When you are done, please REST!

Agbalowomeri:
What difference does it make?

KarlTom:
It will still take about 1 month for the actual issuance of the bond(s) and I think it will be done in tranches (₦4tn no be beans)

PETERiCHY:
President Bola Tinubu has approved a N4tn bond to clear verified debts owed to power generation companies and gas suppliers as part of efforts to stabilise Nigeria’s electricity market and restore confidence in the sector.

The Minister of Power, Adebayo Adelabu, made the disclosure in Abuja at the Expert Forum on ‘Uninterrupted Power: The Industrial Imperative’ organised by the Nigeria Economic Summit Group, where he outlined ongoing reforms under the Federal Government’s Renewed Hope Agenda to make the power sector sustainable and commercially viable.

According to him, the bond approval forms part of a broader financial stabilisation plan designed to address legacy liabilities that have hindered investment and liquidity across the electricity value chain.

“To stabilise the market, Mr President has approved a N4tn bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and a viable industry.”


https://punchng.com/tinubu-approves-n4tn-bond-to-clear-gencos-debts-power-minister/


TRANCORPIANS FASTEN YOUR SEATBELTS!!!

leo1234:
This last one was for 2 days.

Your profit margin on PZ should be close to 30%.

KarlTom:
@megawealth01

Told ya PZ will hover around ₦40.

Agbalowomeri:
I am with you boss
Let's go there

KarlTom:
Seems FOte$ is not done with FIRSTHOLDCO

Huge deals ongoing...

megawealth01:
What will you now say of UNITY BANK?

Streetinvestor2:
Lol I understand the joke is on the 800 guys
I will add that they equally now have dent on that CV .If they apply to new companies. The management may see them as trouble makers if verification is conducted before employment

dapix:
https://doclib.ngxgroup.com/Financial_NewsDocs/45069_P_Z_CUSSONS_NIGERIA_PLC.-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2026_FINANCIAL_STATEMENTS_SEPTEMBER_2025.pdf

PZ is fully back from losses!!!!!!!!!!

mikeapollo:
So you think PENGASSAN can decide or impose workers on Dangote refinery if Dangote is truly determined to not employ them? The worst case would be payment of damages and financial entitlements to the affected workers

Agbalowomeri:
I think the suspicion is that for example, if you sell in December and you made a kill. You can reinvest in january or febr. make small gain or breakeven, then you can move your money because you will only report for the new year which you have made little profit. I hope this is correct understanding

Olaide1295:
Like you, I find the suggestion of taking loans to avoid tax confusing especially in the Nigerian context.
But it's clear to me when I think of developed countries like UK, US.
Imagine taking a loan of 4% and then putting that in S&P 500 which has grown 11% for past 10 years.

Wealthy people never pay off their loans, they just keep accumulating more loans for their daily expenses at say 4% and use their equity/shares as collateral.
Essentially, your debt grows 4%, while your wealth grows 11%. Best part is you pay zero taxes since loan is not taxable.

megawealth01:
1. The cost of fund at 27% vs capital gains tax

If you take an asset-backed loan at 27% interest, that means you’re paying ₦27 annually for every ₦100 borrowed.

Capital Gains Tax (CGT) in Nigeria is 10% on the profit when you sell an asset.

On the surface, 27% financing cost looks much more expensive than 10% tax.

👉🏽 But the real comparison depends on:

What the borrowed money is used for:

If you use it to fund an asset or business yielding above 27% ROI, then the loan pays for itself and you still come out ahead.

If the yield is below 27%, then you are worse off compared to just paying capital gains tax and selling.

Timing of payment:

With a loan, you don’t sell the asset, so you keep enjoying potential future appreciation.

With CGT, once you sell, the asset (and its future growth potential) is gone forever.

So — if your asset is appreciating at, say, 40% annually, then paying 27% finance cost is still better than selling and paying 10% CGT (because you keep the compounding gains on the full value).

2. Loans aren’t usually for spending but for acquiring income-generating assets

You’re absolutely right — the wealthy don’t usually borrow just to “spend”; they borrow to leverage:

Borrow against assets → free up cash → buy more assets (real estate, businesses, investments).

The original asset keeps appreciating, and the new asset generates cash flow to help service the loan.

This way, they expand their balance sheet without ever selling, meaning they legally avoid triggering capital gains tax.

3. Holding assets vs paying finance costs

Here’s the trade-off:

If you sell the asset:

Pay 10% CGT.

Lose future appreciation.

Lose collateral you could have used to borrow again.


If you borrow against the asset:

Pay interest (27% in your case).

Keep the appreciating asset.

Potentially use the borrowed funds to buy something that generates more than 27%.

So when are you better off?

If the expected return > cost of borrowing (27%), borrowing is better.

If the expected return < 27%, selling and paying CGT is cheaper.

If you need short-term liquidity, but believe in long-term asset growth, borrowing helps you avoid losing out on future appreciation

megawealth01:
1. Income vs. Wealth: Understanding the Basics

Ordinary people usually earn income from salaries or wages. Salaries are taxed heavily (in many countries, at rates of 20–40% or higher).

Rich people, however, focus on building wealth (assets like real estate, stocks, businesses, or intellectual property). Wealth can grow in value without being taxed until it is sold.

2. How Debt Comes In

When rich people need money, they don’t usually sell their assets (because selling would trigger taxes like capital gains tax). Instead, they:

1. Buy Assets – e.g., real estate, stocks, or businesses.

2. Borrow Against Assets – They use those assets as collateral to get loans from banks.

Example: If a billionaire owns #100M in stocks, they can borrow #20M from the bank using the stocks as collateral.

3. Why It’s Smart: Loan proceeds (debt) are not considered income, so they are not taxed.

3. Why Debt Isn’t Taxed

Tax laws only tax income (like wages, dividends, or realized capital gains).

A loan is not income, because it has to be repaid. Therefore, if a rich person borrows against their assets, they get cash in hand without a tax bill.

4. Using Debt to Grow Richer

Wealthy people don’t just borrow money to spend it recklessly; they use debt as leverage to grow:

Buy More Assets – e.g., borrow money to buy more property or stocks, which then generate rental income or dividends.

Business Expansion – use loans to scale businesses, increasing long-term wealth.

Lifestyle Spending

Without Selling – they can fund a luxury lifestyle (houses, jets, cars) with loans, while their assets keep appreciating.

5. Extra Benefits

Interest Deductions: In many countries, interest payments on certain types of debt (like business or real estate loans) are tax-deductible, reducing taxes even further.

Asset Appreciation:

Assets like real estate and stocks often grow in value over time, so their wealth increases while they’re borrowing tax-free.

Estate Planning: Some use debt as a way to transfer wealth to heirs while minimizing estate taxes.

6. Practical Example

Suppose a billionaire owns #500M worth of stock in a company:

If they sell #50M of stock - They pay capital gains tax (say 20%) = #10M tax. They’re left with only #40M.

If they borrow #50M from the bank using the stock as collateral → They get the full #50M cash, no taxes due.
Meanwhile, their stock continues to grow in value.

megawealth01:
Rich people use debt to get richer because debt isn’t taxed. They buy assets and borrow against them tax-free

thebargainhunte:
That one dey his own level, just expect N0.05 dividend

thebargainhunte:
#0.25 dividend is very poor

Sunrisepebble:
What have we been buying ?

Macgyver1:
Thank you. Any recommendations?

Redoil:
i remember somebody buying 7 million units oando at N65