₦airaland Forum

Mapple90:
Is this forum no longer a treasury bill section. Moderator could you remove some post here.

Interest on savings is now higher than TBs. So what else do you want discussed on TBs?.

Benzboys:
The bubble will burst someday weh dem dey talk since 2010 still the bubble never burst.
People are making some kind of money these days in this country and the middle class is growing,so it's no wonder these houses keep appreciating.
I also like the UK type homes(semi detached) they are building around lagos for the lower middle class.

Atleast it is no longer impossible for a person that makes 5m a year to own a home in Lagos middle class areas.

Iam also impressed by them. Very portable. Not all these big big duplex all over the place with high price. We waste space a lot in this part of the world.

ahiboilandgas:
very true ...when i started my cement distribution business i forcast that i would have 20 branches after studing several business like kfc with low margins but several units to make good inflow....i ran into problems from the pioneer branch cos of theft of sale proceeds by sale boy....he intentional damage bags so as to sell in mudus , [b]he also collect stock outside and sell in my ware house...[/b]the place was generating a net of 180 k monthly and i have capacity to open 19 more ...i was paying salary of 30k and commission....but the Nigerian human resource is an impossible being

This is another big issue. Most of these sales people collect stock from outside and sell in the shop and when you come, they will say no sales and at month end, they expect salary to be paid to them.

Grupo:
South Africa was built by white people. Ever since the country's leadership was handed over to blacks there, everything has been in a state of constant decline.

I don't want to talk about Rwanda.

SA now has power cuts. The SA airline will soon go the way of Nigeria Airways.

einsteine:
At FBN Holdings, an individual investor with significant shares ( the investor also holds significant shares in a flour milling business) got his daughter employed straight out of law school in a position of Deputy Manager (instead of graduate trainee). Over the next seven years, she got multiple promotions and became an assistant general manager. A normal individual from law school would probably need to work 20-30 years to get to that position.

That's nepotism.


Edited to add: She had three years of experience in the sector before but even that was not enough to get an AM grade. Also, not exactly sure she is the investor's daughter (could be daughter in law) but they share the same surname and now works in the flour milling industry

In some sectors, such might not have any effect on the organisation. Banking is mainly a routine work. Why she no go enter chambers as head of chambers and then go to court to lead a case. Lawyers go flog her for ground well well and use her to shine.

Tobex4realTobex234:
Except you're working for the government, most private organizations would require you to have the requisite skill.

Are you saying a job like software development can be gotten via "man know man"? If you're simply not initially capable, even if your brother owns the company, you won't be employed if you don't have the skills.

Gbam. 'Man know man' no dey write codes. It is mainly in ministries you hear of slots.

AMINDA:
Most times, what Nigerians call "Connection" is what is known as "Networking" in the employment sphere. Globally, it is still the number one way people get hired in most industries and is generally preferred by HR professionals. Getting a qualified candidate for a job is not as easy as it seems hence the reliance on recommendations from already trustworthy individuals.
Networking isn't a bad thing as long as one is qualified for the job, it is nepotism and cronyism that should be frowned upon.

Networking, like any other skill, can be learned. Although, most times it is about being in the right place at the right time. Young graduates should strive to improve their networks.

Gbam. There are times we recruit in my office without advertising. We just pass the information to the staff that if they have friends looking for work, they should get their CVs and send. Sometimes i contact ex-colleagues if we need staff and ex-colleagues also contact me if they need staff.

X21:
Bond fund 12.17% annualized[img][/img]



bond fund returned 12% pa
[img][/img]
capital rate interest
1 60,000.00 12.17% 608.65
2 120,608.65 12.17% 1,223.48
3 181,832.13 12.17% 1,844.54
4 243,676.67 12.17% 2,471.91
5 306,148.58 12.17% 3,105.63
6 369,254.21 12.17% 3,745.79
13,000.00

dollar fund returned 9.2%
3 months 69
1 year 276
capital 3000
rate 9.2%
add exchange diff between march and July of about 30% dollar fund out performed bond fund

He was contributing 90k monthly for 6 months and not 60k monthly.

GonFreecss1:
I understand you and Sir “Barrytone” very well.

People are missing the major point which he is making. And it’s funny because we are in an investment forum, the same forum that preaches what sir Barrytone is saying.

Going to Lagos and the cities seems like the logical thing to do, but is it? He just basically explained the principles involving more opportunities based on him being a champion there. People are still not getting it.

Many don’t know this, but there are many foreigners mining gold and other stuffs in our villages making a killing why “we” run to Lagos and overseas. It is sad.

Pa Emma, and sir Ukay and the rest of the investment gang I am very sure won’t buy a stock everyone is talking about and keeps rising everyday beyond it’s intrinsic value. They will want to buy more stocks in “bonanza” period, a time when people are scared and running away from the stock market.

Many want to move from Villages to Lagos and many from Lagos to overseas/Canada. I am beginning to think the bonanza might be in the villages, many just don’t know it yet.

And then from overseas/Canada to Mars.

ojesymsym:
You are very correct but Barrytone is also spot on. Lagos creates a different mentality in you but it comes with the pressure to show that you have arrived which is what Barry is talking about.
Many folks who go home during Xmas and show off save for it for most of the year, making the folks in those town feel envious.
It's different strokes for different folks.
Lagos may give to you but it will also collect from you. Some people just want a simple decent life. For some people, 3 million in their account is more than enough.

Lagos vs the rest of Nigeria argument be like Nigeria vs traveling abroad argument.

owo eko, eko lo gbe.

ositadima1:
Bro, did you take the loan? How many people will take such loan when it is apparent they don't need it?

I have 10 mil in my account for a very long time now u as bank decide to offer me 4 mil as loan because of my balance, why should I take it and be paying interest when I can use my idle money?

If that is how they go about it they wont get enough people to go with it.

Concerning default, most salary accounts have a consistent payment period every month, mine does. So how can I default when salary goes through the bank first? Risk to them could be seize in salary and that is where they should do their homework.

Anyway, all this based on my rational thinking and I am probably wrong.

I did not take it because i did not need it. The system that produces such a report is automated and it is normally consumer loans targeted at salary earners. The automated process runs based on certain parameters and it generates a list of those qualified and an sms or email is automatically sent to recipient or it automatically appears in your Mobile App or Internet Banking. You are free to ignore it or take it by just clicking a button. It is bot every account holder that it sends the information to.

The idea is for you to be aware that you are qualified for such an amount.

Sunday66:
Please can you put me through, I have been struggling to access the loan.
NB: I am qualified

If you are qualified, did GTB put the amount you are qualified for in your Mobile App or Internet Banking?.

ositadima1:
If the deduction is automatic on salary credit then balance factor is of no significance. Is the inflow that is d most important factor not balance. I can decide to suddenly withdraw d attractive balance or change my pattern. I used to have large balance as result of left over from salary, now I keep not more than 50k.

In d case u stated above d scenario could probably be 10% or less of ur monthly income by 3 years, giving u have been earning same in d last 5years or more.

10% of 100,000 x 12 x 3 = #360,000

I doubt the banks consider only inflows to arrive at what is due to you as loan. At a point in time, i had N1.5m showing as amount i can take as loan. I used to leave a large sum in my salary current account. Then i started moving out the money a day or two once the salary enters to accounts in two different banks. I then noticed that the N1.5m dropped to about 600k. Then i started moving some part of the left over in the salary account to my kids accounts. I noticed that the amount further dropped to below 100k. Meanwhile, the salary has not changed and it is still being paid to the same account. I also observed this same trend with another staff in another bank.

This shows that the banks do not use only inflows. The banks cannot be that foolish to use only inflows that do not stay in the account for more than a day. You think say banks no get sense?.

Those days, when banks were using only balances at the end of the month to compute savings interest, some 'smart' guys will go and borrow money and overload the account at month end to earn high interest amount. Then interest on savings was as high as 15%. On the second day of the new month, the person goes to withdraw the amount deposited and interest. He returns the borrowed amount to his friends and go and flex with the interest. This is no longer possible because interest is now computed on daily balance.

As i said earlier, a lot of parameters go into computation of the loan amount due to a person.

ositadima1:
Funny thing is that someone whose salary "vanishes in 30 minutes" needs the loan more than someone who hardly touch his salary.

It is supposed to be based on how much salary received and how long that salary level has been coming in because after all the monthly deductions are automatic, they take their own first.

It is not an emotional thing of who needs the loan the most. It is a business decision and there is no emotions in business.

The vanishing might be that it is moved out to other accounts in other banks. Do not forget that the bank knows where every transfer made goes to. So why should a bank send you an sms or email when they do not even have an amount to work with?.

Look at this example:

Balance at start of day: N1,000.00

Salary Inflow: N100,000.00

Outflow: N100,000.00

Balance at close of day: N1,000.00

Net change: Balance at close of day - Balance at start of day = N1,000.00 - N1,000.00 = 0

Loan amount to be given: = Net change * parameter1 * parameter2 * parameterN = 0 *parameter1 * parameter2 * parameterN = N0.

So you want the bank to send an sms alert or email to the customer that he/she is due for a loan of N0?.

rationalmind:
How come Zenith has not offered me a loan na. Maybe the salary entering the account every month is too small or because I almost never leave the money there.

The banks use several parameters to determine what you are qualified for. So if your salary is always 'vanishing 30 minutes' after it is paid, the amount you are qualified for will likely be too small to waste time sending you an sms or email.

freeman67:
All na the same. To know what it entails, try them or look for who has done both to explain to you. Though for StanbicIBTC GIF what is written there is that your capital is guaranteed.

Ok. Now that i have an idea of what VGIF entails since it is on their website, i will contact Stanbic to get deeper details of their SGIF.

Reine22:
Stanbic has its own Guaranteed income fund

Please what is the name so that i can check it out and compare.

emmanuelewumi:
Loan to pay for a recurring expenses like house rent, school fees is a no no.

It is still under consideration. It might be just once just to have a record of credit and trust with them in case of the future business needs.

freeman67:
Benchmarking with any class of Stanbic IBTC Asset Management product should be with with its peer SGIF not MMF. SGIF is the equivalent in StanbicIBTC not MMF.

I guess the SGIF is "Stanbic IBTC Guaranteed Investment Fund". There is still a difference because it does not have a guaranteed rate unlike VGIF that has a guaranteed rate of SDF.

emmanuelewumi:
You don't get a loan for the fun of getting. You can get a loan to prove your creditworthiness. I have gotten loans payable within 12 months which I paid back in 8 months. By doing you are building your creditworthiness and relationship with your bank

I was just joking with Oga Ahib.

Iam actually thinking of getting a 6-month consumer loan for rent payment before the year runs out in order to start building my creditworthiness even though i normally save the yearly rent on a monthly basis which means when the rent is due, i have the cash to pay.

ahiboilandgas:
uba of all banks called me that i quality for 4m naira customer loan without visting the bank ...payments is 164 k over 36 months

Abeg, collect am make we go Quilox go rock.

sellers4buyers:
I have some of this info. But I want to clear the air, my major post is not to seek for funds to trade. It's a backup fund I need. But if you want to deal with me, I have a way I do my biz, I will share with you through any electronic means of your choice, if you are okay with it, then we can deal.

After 4 years, how come your bank cannot provide this backup fund for you?.

emmanuelewumi:
.

Okay I am wrong. They should have more of long term bonds than Treasury Bills

I was trying to benchmark it with Stanbic MMF that does 100% fixed income. I noticed that Stanbic MMF does not have a guaranteed rate like VGIF.

emmanuelewumi:
It is not a money market funds but a mixed fund.

A blend of equity fund and money market fund

"What is VANTAGE GUARANTEED INCOME FUND?

VANTAGE GUARANTEED INCOME FUND (VGIF) is an open-ended collective investment scheme which pools investment into a wide range of Fixed Income Securities especially very liquid short term money market instruments and government treasuries"

You have confused me. The above is from Investment One website on the definition of VGIF.

emmanuelewumi:
FBN Quest Asset Management is also below 5%.


It depends on what the fund managers have in their portfolios. They usually have cash, Treasury Bills, Commercial papers, short term corporate and FG bonds in their portfolio.

It seems it is only VGIF from Investment One that has a guaranteed rate.

Thisnut:
i believe you should have known better than the garri seller. How would you say she is no selling in Dollar and she's not affected?

Do you know when money loses it purchasing power, it affects ever sector, even the locally made commodities, especially in a country like Nigeria that's mostly dependant on import?
The garri seller would also need to increase her prices in order for her money to be useful when she is going round the circle of exchange.

Someone said the landlord wouldn't increase house rent alongside the dollar increment, yet House rent has doubled from 2014 till date. Even though rent increment isn't done as often, but it always has a way to blend with inflation.
Oga landlord still dey use dollar.

Iam not saying they do not increase but the rate of increase is not the rate of the increase in exchange rate. The garri seller saying it is because of dollar is saying that because he/she is hearing the foreign rice seller saying it. Once importers start saying dollar has increase, even vulcanizer and barber will increase and say it is because of dollar increaase. The palmwine tapper in the village will also even blame the increase in the price of a keg of palmwine on dollar increase. He will also say 'dem talk say dollar don increase'.

OgogoroFreak:
Food is allowed to move freely. No interstate ban on food.

Theoretically. You need to go and ask those that bring in the foodstuffs what they pass through on the road to bring them in. This is Nigeria.

Thisnut:
when a country is dependent on import, dollar becomes her currency by default.

My sister bought audi 80 at 350k naira about 10years ago, today that car is being priced at 500k naira. Does it mean the value of the car went up? Absolutely no, it's the value of naira that went down.

Truth be told sir, dollar is Nigeria's first currency, while naira is her second currency. From airline booking, vacation, electronic, furniture and other household goods, transportation, clothing, food items are all controlled by dollar. The other day, a lady was telling a market woman selling garri that the price was too high, the market woman responded that " madam dollar don go up.

If you kept dollar at one dollar to naira @180 in 2014 without single investment and sell at 455 naira today you would have made 152.7 percent increase. 455-180/180*100.


True, America don't use naira, even benin Republic next door don't use it either.

Even if the garri seller is saying 'madam, dollar don go up', is the woman selling the garri in dollar or is her rate of increase equivalent to the rate the dollar went up?. The garri seller saying it is just saying it as a joke. The real reason garri price went up was because of the inter-state lockdown. Most of the sellers refused to go and bring in because of the high cost of transportation due to the several points on the road they have to settle security agents enforcing the inter-state ban.

XiaoLi:
First bank savings interest have dropped few hours ago.

Chai. See as guys dey do per second monitoring of savings interest like say na TB upfront interest or bond interest payment dem dey monitor.

Sholapey:
It doesn't work like that, they balance your account before the month end and credit you after month end with the interest on the previous balance.

This is no longer the process. Interest is calculated on your daily balance on daily basis and accumulated somewhere from where it is paid at month end.

ojesymsym:
This is just me thinking, can you receive your interest from GTB on the first and quickly move the funds to Firstbank and receive another interest on the 4th?

Capital No !!!!!!!!!. Interest is accrued daily and paid at the end of the month or at the monthly anniversary of the account i.e. monthly anniversary of when the account was opened.

emmanuelewumi:
N10 million at an annual growth rate of 10% will grow to N26 million in 10 years due to compound interest.
Compound interest in the 8th wonder of the world.

Due to this lockdown and closure of schools, my kids schools started doing online schooling. The lesson notes are uploaded into the school portal which is accessible to both students and parents. I was always downloading them and going through. On a particular week lesson notes, i opened the Mathematics notes and saw the topic 'Mathematics of Finance'. Going through it, i saw compound interest as the topic to be taught. On getting home, i asked my son if he understood the topic and he said yes. I told him that he should ensure that he masters that topic very well as that topic is one of the secrets of becoming a millionaire or billionaire when he starts working. I also told him to go to google, search for the formula and put in some figures like 20k monthly at 5% for 20 years. He came back shocked at the amount.