₦airaland Forum

megacontrol:
... and a lot more rewarding too in most cases if you're in the right location and know how to operate.
Its down to your perspective (a lot riskier vs a lot more ROI), and of cause your tolerance level.

His made a good call going by his example in Uyo since no much difference in ROI between both investments but I'm sure if it were Lagos the story will be different. In fact he wont be selling, at least not at cost price because the returns from the safe Tbills will never come close to what the "risky" property will bring.

GODAKPAN:
Am fine here, the site is in uyo
I did the drawings in lagos and its a practice the engrs at the office frown at. they prefer you domesticate everything with them. I waited for about 16 months. had a plan of building within 24 months, so when they wasted 16 months, they were taking too much. I have set my retirement so cant afford delays. on profitability: I started tbills when it was above 18%, I needed 50m to finish a 53 rooms self content, at max, I will be making a yearly return of 5.3m but if I invested the 50m in tbills at the 18%, I was looking at 9m without quarrel with site engr, uyo capital city authority, tenants and the property must be maintained while I don't need to maintain my tbills. even at 10% I will be making equivalent of the building rent. tbills also hides the source of your income, making you live a normal low life without criminal elements courting you. unfortunately nobody is willing to buy the properties at even their cost price.

Rental yields aren't usually up to 5% even in the highbrow areas of Lagos (I don't know of commercial real estate). Plus, you have to make provisons for renovation which can be high or low depending on the kind of tenant you have. When the tenant decides not to pay rent you'll have incur extra expenses. All these reduce your rental yield.

I know someone will talk about capital appreciation but, if you're looking at rental income, capital appreciation is moot (IMO).

Dear Gazzuzz

The engine coolant compartment of my kia rio boils. I've gotten the radiator flushed and refilled the compartment with coolant. Yet, the problem persists.

What is the cause and the solution?

Thank you

bahgo2001:
10% withholding TAX may be applicable

Its not

Rijo02:
Am actually curious to know how you were able to get 12.18%. Is the interest not the difference between the Principal (5m) and the amount debited (excluding the charges)? Please respond!!!

Error. Used the wrong figure. Corrected while you typed yours

gogedda:
Good afternoon house, pls I need candid advice from the Guru in the house about my friend who bought treasury bills at secondary market at13% from Stanbic bank.

Before Tbills purchase
Amount in bank account: 5,010,654.05 (five million, ten thousand)
Face value invested: 5,000,000 (five million)
Tenor: 91 days
Rate: 13%

After T bills purchase transaction:
Amount in bank account:152, 271.85
Tbills amount deducted: 4,857,534.25
Transaction fee: 300
SFKP fee: 547.95

When he approached the bank before he bought the Tbills, he was told that the secondary rate for 91 days was 13% and he filled it in the form and he was dully debited 3 hrs later.



From the look of things above, he is suppose to have more than the above in his bank account as his current balance. From my own calculation, i feel he was charged at a rate lower than what he was told. Pls kindly help out Gurus with the calculation. He is planing on going back to complain at the bank. Correct me if am wrong. Was he really charge a rate of 13% ?

Appears to be around 11.39%

Use a simple interest formula and make R the subject of the formula

[quote author=emmanuelewumi post=6408964foreign reserve, get the needed financial/economic, education/literacy/intelligence in order to be a participant in the coded wealth transfer that is currently taking place.[/quote]Sir

Kindly suggest examples of such materials. Particularly for appraising stocks.

Thanks

My experience with Jumia was fine. Ordered a high value item on a Thursday night, received it the following Monday. So far, so good.

Thing is Jumia is a marketplace. There are a lot of sellers including Jumia. Some sellers are top notch while others are questionable.

Its like going to Computer Village. Some sellers are legitimate while others sell fufu and eba

bendo75:
As the TB rates are declining, I think it will be wise to diversify may be put a little into Cryptocurrency. I will recommend Ethereum.

Err.....who asked you?

sunvick:
Well done guys, this thread has been very informative.

Please I will like to ask, why is that TB rate vary among banks after bidding with CBN?

Because while CBN decides the marginal rate, the banks bid competitively. That's why it is called an auction. Now, there is a range of successful bid rates. If the bank's rate falls within this band, it will be allocated NTB based on its bid rate. If the bank's rate falls outside this band, it is a failed bid. This explains why a bank might be unsuccessful at a PMA

Suyaman2015:
So because of this thread I passed the toll again. Since I added 10k on my card. They had already removed 200 naira. They will claim that’s negative Balance from past etc right? Ok fine. 9800 is my Balance. I passed last night. I passed this morning. When I passed this morning it was saying 9468. So just now I drove through and it said 9168. When I passed the second time it gave me the same reading. I’m going to continue posting as I Investigate what’s going on.

Can you request for your statement to confirm your passage?

2009 Kia Rio Shock Absorber

C4Ltd:
my people I have received my credit alert at maturity. so I reinvested in fbn and for the first time I ticked the option of reinvesting interest as well. my principal was debited and no interest upfront this time so I was glad. but when I checked app, I saw a very small amount in hundreds credited as ntb interest. is it usually like that? I wasn't expecting to see anything "INT REF" credited to me.

The small sum credited came as a result of the fact that investment in TBs can only be done in thousands(at a minimum) i.e. the remnant that wasn't reinvested because it wasn't up to a thousand.

.

Reyus:
I wonder why some banks debit the entire tills value and plan to credit the customer at the end of the tenure with the tills value plus interest.

My people, is this normal for tbills secondary market?

Perhaps you unwittingly chose to re-invest your interest.

Analysis] CBN’s deficit financing; A word of caution on interpretation
By walesmit -
September 25, 2017

As is customary ahead of the start of its two day monetary policy retreat for September 2017, the Central Bank of Nigeria (CBN) released the personal statements of members of the monetary policy committee (MPC) from the July meeting. In one of the statements, Dr. Doyin Salami, stated that the apex bank has been running a piggy bank for the Federal Government of Nigeria (FGN).
At the heart of the claim, which mirrors a similar complaint by the ex-governor Sanusi Lamido Sanusi in late 2016, is the marked rise in CBN’s loans to the FGN which stood at N5.2tr in July 2017 going by data from the CBN. However, having examined more data from the CBN, I think it would be important to state that growing FG borrowings from the CBN is only half the story and piecing the other half would help place things in proper perspective.
In financial accounting, the balance sheet ‘balances’ when assets equate to the sum of liabilities and equity. From a banking perspective-as the CBN accounts are kept- a loan to another party in the view of a lender is an asset and going over CBN’s monthly balance sheet data available on its website, CBN loans to the FG are positioned on the asset side of CBN’s balance sheet. Looking back, from under N600bn in 2010, FGN borrowings from the CBN have climbed on an average of 45% per annum over the last seven years to over N5tr.

As a share of CBN assets, its loans to the FGN rose from under 8% to 20% in 2017. The big jumps occurred in 2016 and suggest that faced with a steep drop in oil revenues, the Nigerian government turned to the CBN to bridge funding shortfall with a marked rise in the volume of overdraft facilities made available to the FG by the CBN. On the face of the data, it would appear that Dr Salami’s accusations are correct.
Figure 1: CBN loans to FG: Components

Source: CBN * As at July 2017
However, as stated earlier, in a balance sheet, all assets (including loans in this case) have to be financed from either liabilities or capital. In the case of a bank, this would be primarily via deposits and then from borrowings or equity. So what is the corresponding deposit item on the CBN balance sheet for the loans it is providing to the FGN? Looking at the liability side of CBN’s balance sheet reveals it clearly – FGN deposits.
As the banker to the FGN, and following the implementation of the Treasury Single Account (TSA), the CBN is the natural domicile for FGN deposits. Gleaning through the numbers reveals that FGN borrowings look like a cash backed loan as effectively the FGN borrows against its own deposits with the CBN. Looking at trends, after holding steady then declining in 2014-16, FGN deposits jumped in 2015 as the TSA effectively sequestered all deposits from the banking system into the CBN to N5.26tr. Hence, the FG is merely taking an overdraft facility against its own deposits.
Figure 2: FGN deposits: Components

Source: CBN * As at July 2017
Combining both FG deposits and loans together places things in a proper context – from a little under 30% of its deposits, prior to the oil price shock, the FG is now borrowing against most of its deposits to the CBN with the 2016 number at a record high of 98%. Viewed from this light, and keeping the balance sheet perspective in mind, there appears to be nothing wrong on a net basis. However, there are likely to be concerns raised from an income statement perspective, where one would need to match the incremental CBN claims to the FGN against statutory requirements in the CBN Act 2007 which mandate that ‘the total amount of,…, advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government’. What is unclear is whether the advances referred to are net or gross sums and this suggests that the matter might be subject to legal interpretation. From a ‘substance over form’ standpoint, in my opinion, a net basis sounds more realistic in the light of TSA implementation.
However, this would also imply that the finance ministry is not immune from accusations of poor treasury management as clearly they are unable to manage cash flows in a manner that limits FGN reliance on overdraft facilities. The way to look at these borrowings is that they are  cash backed loans; this reflects an inefficient liquidity/treasury management operation by the finance ministry as it does not have sufficient control over its own funds and expenditure. Cash management ought to be the bread and butter of the finance ministry but on the evidence presented, it appears its merely an allocation and spending unit and less serious on planning.
Figure 3: FGN borrowings and deposits with the CBN

Source: CBN
From the data and analysis presented, the claim of unrestrained CBN deficit financing appears to not be something worth worrying about. However, what would follow is the Dr. Salami’s claim that these borrowings to plug a bulging FGN deficit being funded via CBN’s aggressive liquidity tightening from the financial system. Cue the now generic crowding out argument against the FGN. Also, as the data shows, the FGN is merely borrowing against its own deposits, though this is inefficient as new money is not being created.

https://nairametrics.com/analysis-cbns-deficit-financing-fg-not-thought/

kristien4:
Will you blame me for being afraid. Tb is 1year. Sukuk is 7yrs. T.b has been on for ages.. sukuk just came. No blame me..

Moot point

kristien4:
who dash me 50m. Fear no let me do sukuk,, soon they'll tell us sukuk fund is missing and PAYMENT will now be like pension.. where u will have to wait and wait. This is Nigeria. I prefer the T.B just like you have stated. 17% for 300days is impossible at this time. Stanbic gave me 15% for 309 days... lol. I vanish. Dats poor. Dnt you think my chances are better with zenith that has been winning bids instead of leaving it at stanbic hoping they get it right and waiting for another two weeks if eventually dey fail again? And you know,, the more time passes the more the rates drop... soon we'll be begging for 13% at 364 days...lol. you'll be surprised zenith receives expo from an inside man at CBN ... just thinking.. na naija we dey

Have you heard of any time that FG has not honored payment on its own debt instrument? If you're scared of the Sukuk you might as well not do TB since na the same FG dey issue both.

Partnerbiz3:
My bro, I was surprised that nobody here knows the answer to this question. I have asked similar questions many times and nobody has given a reasonable answer.

Can you imagine?

What useful piece of information have you deposited here that gives you the right to a "reasonable answer"? What would stop you from contacting your bank's CC and coming to share here?

In fact, someone posted something saying a penalty of less than 5% of interest but you somehow missed that one.

xammy:
NEW SCAM ALERT.

I bidded through FCMB but i was shocked to my bone marrow that FCMB bidded 18.20 (calculated attempt to keep my money)
note that my money has been sitting since 1st of september.

am so bidding using my rate next time

be advised

How is this an attempt to keep your money?
Before now, the rates hovered between 18.1 and 18.5. That they wrongly estimated doesn't mean they want to keep your funds

Gavrelino123:
Good evening..
I don't understand what you mean...
Make it clear to us......!
Are you saying that it's unsave to invest in TREASURY BILLS at the moment.?

Mr Oga

Na you be the chartered accountant na. Use your knowledge to explain to us

[quote author=Capital247 post=60167838][/quote]Still incorrect.

The bank will bid on your behalf if you're investing less than 50m. They will pool funds from retail investors who are investing less than 50m and make the purchase on their behalf.

This is the practice.

Capital247:
Bros you can not trade below 50M in the primary market .
Please check your facts right

Yes you can. Only that you cannot choose your own rate as was previously applicable

PETERiCHY:
Well NTB is out of it because i will need the fund when i batch next month.

look for a tenor that matches your timeframe

PETERiCHY:
Please house this morning Fidelitybk gave me 6% on #5m for 14days CALL DEPOSIT is that a good rate or are there better offers out there?

Well, it's a call deposit. Rates on that are lower. You might have been able to get something better on the NTB sekondiri market. I don't know what their rates for that are.

emmanuelewumi:
If the Treasury Bill is refinanced, the funds from the refinanced debt ie TB will be used to pay the local investors whenever their TB matures. Rather than Nigerians providing short term funds to FG, this will be done by foreigners and Nigerians who have access to forex.

I foresee a situation whereby yields on TB will reduce, forex may become scarce for local TB or Eurobond investors, thereby affecting the exchange rate.

The government is trying hard to promote the savings bond. The winners as a result of this proposed policy are the banks and Federal Government.

I see a situation whereby many A-list companies will come out for their corporate bonds and commercial papers, qualified state governments may also raise funds through bonds, l also see increase activities and returns from the stock market, hopefully things ought to start looking up in the real estate sectors.

These are my layman's opinions, I hope I am 60% correct with my projections.

In the first place, part of the rationale behind issuing NTB at such rates is to attract foreign investors to bring in USD. Upon maturity, these investors will repatriate the funds in USD which would have put a strain on USD supply. Meanwhile the CBN still needs to ensure exchange rate stability. Funding the FIs and sustaining the intervention in the fx market at the same time could be challenging.

So, floating a bond in USD to refinance was probably the best option to ensure dollar liquidity for the repatriation by FIs and the local fx market demand.

gnykelly:
these are junk bond you guys need to be careful.

Why did you classify it junk?

Toboi:
http://www.thisdaylive.com/index.php/2017/08/10/fg-restructures-debt-profile-to-issue-dollar-backed-treasury-bills/

What does this mean for the T-Bills market? Can someone help explain the intricacies involved?

Upon maturity of existing treasury bills, it will be repackaged and sold as debt in the International Capital Market. The proceeds of this sale will be used to pay off the TB holders.

It's like a refinancing. Using debt to pay off debt. Creating dollar debt (with lower cost and longer tenor) to pay off naira debt.

Hopefully, the country's efforts to increase Fx revenue would have yielded fruit. If not, I shudder to think of the consequences.

For more clarity, see https://nairametrics.com/explained-fgs-plan-to-refinance-treasury-bills-with-dollar-debts/

CuteRedd:
@this thriveagric just copied everything about farmcrowdy

Sure nice to have a competitor in a growing potential market

If you chose the cassava option, the yield isn't far better than what you can get on the secondary market. In the past, I'd gotten 18.25% for roughly 9 months

well 25% is greater and not prorated also thriveagric has better ROI with shorter tenures and i can buy more than one tho

Remember that it is only your principal that is insured. Profit isn't

Exactly that's the only issue tho but willing to take the risk

a. there are several competitors with different models.

b. Also, remember that some crops are seasonal so your ROI is effectively annual if you chose such crops.

CuteRedd:
I love treasury bills but i have found a better investment for now in farmcrowdy/thriveagric with a shorter tenure and higher yield.

Then i can reinvest in treasury bills later.

1. Remember that it is only your principal that is insured. Profit isn't.
2. If you chose the cassava option, the yield isn't far better than what you can get on the secondary market. In the past, I'd gotten 18.25% for roughly 9 months.

the poultry option makes sense sha.

this thriveagric just copied everything about farmcrowdy

haywhy28:
18% of 1,000,000 is 180,000

364d tenor is 180k
182d tenor is 90k

Primary Market Auction Results

91d- 13.422
182d- 17.4
364d- 18.53

emmanuelewumi:
I suggest you get a book titled"Getting rich with other people's money" by Paul Sarnoff.

.

Could not find the e-book online. Only hard copy on Amazon. Kindly suggest alternatives

I understand the basic idea of leverage, although I'm leery of using it for speculation as it can amplify your losses (and gains). I'd rather use it for cash flow generating projects. How do you minimise your losses (on the investments)if things go south? or if the prices don't rise as anticipated within the specified timeframe?