₦airaland Forum

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

Agbalowomeri:
You and Transpower

yMcy56:
@N314
I just didn't want to mention the movement.
They came to move it up today.

It's a stock for a long termer especially.
The 257.90 day's low was too tempting...... but the stagnancy discouraged quite a lot of people.

megawealth01:
AGBA doings

Agbalowomeri:
Are you not in finance/accounting?

Agbalowomeri:
She is one of them

Agbalowomeri:
Restating results does not necessarily mean there was blunder

Umehj88:
https://doclib.ngxgroup.com/Financial_NewsDocs/44952_P_Z_CUSSONS_NIGERIA_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_SEPTEMBER_2025.pdf

megawealth01:
Shebi I sound am tire. I even did small analysis on top am. Me wey no get time to do analysis but had to because of you

Mpeace:
Excellent result we expect a full bid and a return to over N40. I no know why I no add more of this one. I just pray the price movement goes slowly so that small money will be raised for a top-up

Umehj88:
https://doclib.ngxgroup.com/Financial_NewsDocs/44952_P_Z_CUSSONS_NIGERIA_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_SEPTEMBER_2025.pdf

megawealth01:
What this means for a potential future delisting:

If PZCH still wants to delist, they’ll need to come back with a new exit offer that passes both minority shareholder scrutiny and SEC approval.

Since ₦23 and ₦37.10 were already rejected, a future offer would likely have to be above ₦37.10 to stand a chance especially considering inflation, FX pressures, and market valuation.

Minority shareholders’ rejection shows they are alert, so SEC would likely insist on a fairer valuation (often linked to recent trading averages, book value, and peer multiples).

If delisting eventually pulls through, the buyout price will almost certainly have to be above ₦37.10. It may not skyrocket, but anything lower than that is unlikely to be accepted again by both minority shareholders and SEC.

yMcy56:
Exit price of N23 rejected.
Then a debt to equity conversion of N37.10 as a revised amount was also rejected by the shareholders because it's the majority shareholder, which is PZ Cussons Holdings that was owed...
It's just a strategy used by PZ to acquire the majority stake in PZ Nigeria...
Accepting this small amount may have negative effect on the minority in the long run probably....
So minority shareholders rejected it.

** Remember, SEC did not approve the exit of PZ from NGX.
What this means is that PZCH will now be awarded more shares of PZ Nigeria at cheap price, then later later, will still opt for delisting probably......and may want to pay peanut, which minority saw thru their plans.

Na my understanding be this anyway.

yMcy56:
It didn't go thru because minority shareholders voted against the proposed price, N37.10.
This is a different ball game entirely.
At the Court Ordered Meeting, minority also have to vote....
If it's against, it can't fly.

Remember: PZ proposed N21 initially, it was rejected......N23 rejected by minority holders...

They later up it to N37.10, which was the highest price within the time AGM occured, and yet rejected again.

** Note: Majority shareholders were not allowed to vote, so it went in favor of Minority shareholders.

crownprince2017:
This pz, I went through their product portfolio, that business really need serious restructuring ooooooo.
Most of their products are fx dependent and most of the ones that are not are fading away with strong competition.


The killer of all is that the competition in the space they play is very high. Almost all their products have strong competitors.

They are only clear leaders with king oil which have small wahala..

Stockhunter:
The sellers are gradually loosing steam...Gina dont worry that bone wey hang for your throat go soon go down🤣🤣🤣... Abeg keep balancing the emotions with humor. Make person no go get HBP..