₦airaland Forum

bee2bee:
Hello all, please someone who has bidded with GTB before should help me out. This is my first time using GTB. I submitted request for 3M at 13.98% and i understand the stop rate is 14%. I just saw debit alert in my email now for N2, 895, 722.95 for Tbills, 300naira for commission and 750naira for custodian fee. Please why was 3M not debited?
cc:feelamong

I'm thinking on going with GTB or FBNquest for the next auction. Can you kindly share more about your experience for this transaction?

You will get the discount upfront with the rate being an annual figure. So if you do it for this example today, you'll get 2M * 10% / 366 days * 9 days ie 49,726.78 upfront (less fees) and then you get the 2M after the 91 days.

Think of it this way, any time you see interest rate, assume it is annualized ie per annum unless otherwise stated. And with TB, discount is applied upfront. That's what is commonly called interest.

bee2bee:
Thanks @ godash, omonigeriarere, ukay2. I understand better now. So meaning GTB will credit 3M into my account at maturity.

You are welcome.

bee2bee:
Hello all, please someone who has bidded with GTB before should help me out. This is my first time using GTB. I submitted request for 3M at 13.98% and i understand the stop rate is 14%. I just saw debit alert in my email now for N2, 895, 722.95 for Tbills, 300naira for commission and 750naira for custodian fee. Please why was 3M not debited?
cc:feelamong

You requested for 3M naira so you'll get that 3M as facevalue at maturity and you will pay ~2.89M right now. See calculations below.

ummitoagirl:
Yes, an actual auction, pls go to the previous page, link was attached... but it looks like it's not been followed.

TopKol:
@ godash, find the link below for the 4th qrt calendar:

https://www.cbn.gov.ng/Out/2016/FMD/NTB%20Issue%20Calender%20-%204th%20Qtr%202016.pdf

Thanks guys. Whao, so there will be an auction next week wednesday instead of the 28th.

ummitoagirl:
@feelamong, can you or anyone explain the 4th quarter calender, I intend to bid for 364 next week. Is it certain that bidding will take place on the 22nd? What column do I look at on the calender.

Did you mean in 2 weeks instead? Or is there actually an auction next week?

Where can i access this 4th quarter calendar?

manlikegb:
@godash ......By at the last auction you mean Aug 31st, right? For what tenor did they give you the 17% because I deal with them as well, and I got 16.85% for 182 days. I'm wondering if the rate they dish out to people differ even though its the same tenor. Anyone else with useful info can shed more light on this please. Thanks

Right. I requested by email for a bid rate of 17.0% for 182 days. They acknowledge first by email that I got served at 17.0% but the investment advice letter they later sent showed a discount rate of 16.5% so I'm ironing that out with them right now.

I would love to reach you directly to discuss some more about them.

ukay2:
Its not possible to reinvest the interest immediately as the interest is paid upfront...but the bank may deceive you that they will do that...meaning they will hold your interest for you till the tenkr expires without giving you any interest on your ntb interest....

When you cool down and analyse how NTB works, you will not want bank to reinvest the interest for you, rather you reinvest the interest yourself in the next ntb bidding week....
For example, you invested 6m last week for 1yr and your interest cbn paid you is about 1m, you can quietly reinvest the 1m in next auction day.....and get another 180k interest which you can reinvest yourself in the next ntb auction date and get another 25k which you may reinvest if you made it up to 100k.....that is the power of compound interest..

Pls all these figures are examples, not the real interest you may get..

Hope you understand....reinvest your interest yourself in the next bidding date...

It's possible to re-invest the upfront "interest" right off the bat without needing your bank to do it for you. You'll just have to figure it out yourself.

If you have a million naira to invest and you order a TB with a face value of N1 million at say 10% discounted rate for a 182-day tenor, rather than the bank taking the N1 million from your account and then paying you the N100,000 "interest" (minus some fees), what will most likely happen is (and i stand corrected here), they will simply take N900K (plus some fees) from your account. But at maturity, you will be paid the face value of N1 million 182 plus 1 days later.

So, if you can do the calculations yourself, you can figure out what the face value will need to be for the bank to take your entire N1 million from your account as the discounted value. In the above example, that face value will be ~N1,051,717 (including all standard fees). See calculations below.

xpertise:
Good evening guys,
I keep seeing this acronym 'OMO' here...pls what does it stands for??

I know OMO means Open Market Operations. I see that there's some details about it in the 3rd table at the CBN link https://www.cbn.gov.ng/rates/GovtSecurities.asp. But then, I can't say I know exactly how
.
1) OMO is similar to or different from Nigerian Treasury Bills (NTB), or
2) OMO rates can be used to get an idea of what stop rate to expect for upcoming NTB auctions

Hoping others can explain.

burrytee:
Hello house av bn a follower on these thread 4a while. Pls cn any cnfrm frm d set of bank where i cn bid on my own :skye, ecobank, fcmb, first. These r bnks i v my fund. Lately fcmb are telling me they will have to cnfrm from there Hq. Gtb r nt going wt my rate.
Thank you

Just got off the phone with First Bank and GTBank and they confirmed I can specify my own rate and they'll bid for me.

First Bank rate is 0.125% of the interest as custody fee.
GTBank is the above plus an additional transaction fee (I think N500 or so)

NOLONGTIN1:
hello house

I'm new to all these, though I've been googling a lot about Nigeria treasury bills.

I have few questions that needs clarifications.

1. I would like to know the discount rate offered by CBN at the last auction for 91days (t-bills). I've been to CBN website, but dey just ended up confusing me. I don't know how to get that info, with the multitude of info displayed.

Normally, you should be able to view the latest stop rates on CBN site at https://www.cbn.gov.ng/rates/GovtSecurities.asp. But the it some times takes a while to be posted on there. Most times, you'll get the rates on this thread much quicker.

2. I was at my bank 2day, I didn't know an auction would be 2maro, dey said it would probably be in another 2 weeks (although it was obvious they weren't sure - but they acted like there was no way they could get accurate information)

The next auction is actually on Sept 14th. Typically banks want you to confirm your TB order 1 or 2 days before the actual bid date. But with the upcoming holidays, tomorrow sounds like the confirmation date for most banks.

here...

feelamong:
The Discount rates for the Auction is out!!

91 days: 14.3890.

182days: 17.500.

364days: 18.4240.

olujaidi:
When you wanted to buy, did you ask them for their charges? I doubt that they just sprung this on you. Perhaps you should ask them for a comprehensive list of charges for services rendered so you won't be caught unawares again.

Interestingly enough, in this case the outrageous charge was sprung on me. I guess it's time to move my investments over to another firm/banks.

Are there others on this forum living outside the country with positive experience initiating TB purchase with a new bank, a bank that follows CBN guidelines on charges? Would love to hear your experience. Thanks.

olujaidi:
Question: Does CBN regulate asset managers? The 0.125% is contained in the Guide to [b]Bank[/b]Charges (2013) which is still in force is for banks, isn't it?

I don't think that there is a standard for fund managers

I contacted (the company formally known as) Kakawa Discount House about their rates. It was the same as the CBN approved charges as listed by @feelamong above, ie
0.125% of earned interest as commission
+ 0.1% of the face x # of days held in a year value as custody fee
+ 5.0% VAT of above commission and custody fees

kelvinodum:
Diamond bank also debited me 500 naira for TBill's auction commission as well as custody fee ,I never heard of auction commission tho

How's the 500 niara calculated? What does it represent in % of interest terms?

feelamong:
0.5% is above the CBN approved rate of 0.125%

book a meeting with your account officer asap!

Thank you sir. I've just sent out an email to them.

To be clear, are you saying the current CBN approved charges is still 0.125% of the upfront interest or is it 0.125% of the face value?

.

.

Ibukun003:
Its still 0.125% commission fee for Stanbic.

I don't know of any other fee...

Is this 0.125% commission fee same as the custody fee also mentioned above?

I asked because Investment-One, [url]investment-one.com/about-us/corporate-profile/[/url] bought TB @ 17.0% at the last auction on my behalf and I've just being informed they'll be charging me 0.5% of the interest as commission. I'm still trying to get some clarify about the charge.

Hello house,

From my search, I saw a detailed CBN rate guide that says commission to buy Treasury Bills for customers is 0.125℅ of the yield. But that was a 2013 document and might be dated.

What is the commissions your bank's are charging you for Treasury bill purchase? Can you also state with bank it is?

Also, are there any other fees associated with Treasury bill purchases?

Thanks in advance.

babakess:
Stop rate.....for may 4th..

91. Days.....7.999%
182 days......9.00%
365 days.....11.05%

Hi. How do you get this rates before it is officially published on cbn.gov.ng?

mekaboy:
Chai, I missed out, by the time I found out the bidding was today, first bank said they have stopped collecting bids.

I would have failed sha, planned to bid for 8%. but as soon as the budget is signed the 91 days will be up to 10%.

I will just do 30days fixed deposit with gtb and wait.

@mekaboy, how do you do FD with GTBank? I have an amount with them already. Thanks.

Thanks @N101,

You're referring to the normally white plug adapter with 3 pins, right? Not a step-up voltage regulator to convert US voltage to Nigerian.

Thanks @ LordReed,

I'm more in the effectuation stage right now than anything. Trying to be understand what the need out there is like. So am reaching out to folks like you who might have more knowledge than me.

Any info you have would be so so appreciated. Thanks

Thanks @iice,

Do you by any chance know the cost of doing Electrolysis, IPL, and/or laser in Nigeria? And also, where those services are located?

I want to get a device in the US with the following electrical specifications. I think it should work in Nigeria without the need for a voltage adapter but I want to be very certain. Does any know know for sure?

Line voltage: 100-240V AC
Input current: 0.2 amp
Frequency: 50Hz to 60Hz