₦airaland Forum

spyder880:
Slightly above N2m
Slightly below N2m

Thanks.

So, the entire building to this point cost under N5m, including foundation and labour?

adconline:
Sophisticated idiocy ingrained in your encephalon.. You can't send Naira without converting it to the merchant's preferred method of payment.. The point is that your bank-if u have one, and CBN do this for u.. That's why they charge u. RIA, Western Union and Moneygram all charge u Naira equivalebt of dollar u want to send.. There is a limit of about $900 with WU&MG.. Stop dashing ignorance cos there are no takers.

What have I been saying all along, or was it because you didn't understand it?

Did you even read the link? Didn't you say the limit was $300? What's RIA's limit to UK, for instance? What's your point again?

You keep resolving to insult, it doesn't make you any more intelligent or matured.

From the link, which you either didn't read or purposely ignored:
"Sender must have a FirstBank account or be identified by an account holder for transactions above N200,000. Maximum send amount as stipulated by the Central Bank of Nigeria is 5000USD Naira equivalent per sender."

Here you go. Help yourself.

Why do I care what CBN or my bank does with the dollars? I don't care here, neither would I care in Nigeria. What matters is I follow their instructions, and send money wherever. A dorm is nice, but not the only option.

adconline:
You are bereft of how things work in intl finance and business.. Merchants state how they want to get paid- mostly in dollars.Your bank charges u in Naira but converts the money in $€£ to pay the merchant-that's why its called intl business.. Daily limit for ur Naira transaction for intl payment is $300 equivalent.

Please stop spewing misinformation. I repeat, you can do wire transfer worth millions from your Naira account to ANY merchant's account in ANY CURRENCY (including Dollars). No $300 limit FOR WIRE TRANSFER. Understand?

The policy wants us to use Naira account to conduct transactions locally and internationally (via official/legal rates), and that's how things should be. We all want a better economy and stronger currency, but refuse to doing things the right way!

There's no point in repeating myself, if you insist on ignoring the obvious. I already made my point several times.

sigidporte:
Otee nde!!

Nnaa, imeri aghi? You should join the conversation and provide your input.

adconline:
CBN limit is $300 daily. How can you do it??

You're still talking about Dollar. I said there's nothing stopping you from converting your thousands of Dollars to Naira and doing your transaction. Through your bank, you can pay for goods worth millions of Naira by converting from OUR currency to ANY currency.

We're in Nigeria, use Naira. Value YOUR currency!

Truckpusher:
Yeah ,you have a point.

And we do what is right and end up in another drama

Though what is right is just right.

Ain't that the truth, sometimes!

Truckpusher:
On the highlighted you and I are fully aware that any policy that would seem to be targeted on any particular group in this country considering our multicultural nature would not go down well and can be misconstrued as a form of economic stagnation after all this isn't the first time in our history that certain region in power has refused to either see to the implementation of policies that they felt it would be beneficial to a certain region and even make policies to ensure that no one moves at a faster rate than the other.

Examples of such policies is the PIB just to mention but a few.

Until we begin to tell ourselves the truth and approach issues from a holistic angle, we will continue to have not just conspiracy theorists but people who are speaking the truth just the way it is.

Yes, we do have our history; however, all I see in this case is people complaining for being caught in an illegal act, when there are clearly alternative transparent means. I still insist two wrongs don't make a right, regardless of prejudices flying around - whether based on facts or not.

Do what is right because it's the right thing to do.

Truckpusher:
Thanks man just went through it.

In as much as I have noticed that it was a fine well designed document to curb dollarization of the economy, at the same time put a stranglehold on corruption and money laundry I still have my reservations and my reservations are purely political and once I'm done with my research about that issue I will comment on this topic again and tell you how and what I feel about this whole thing.

Buhari has a track record of making sugar coated policies that would on the long run impoverish the South and I won't be surprised if any of his anti-corruption slogan isn't another avenue to perpetrate evil and get back at his perceived enemies because last I time I checked Abokkis are still exchanging dollars in the black market with no Efcc and nobody restraining them.

I hope you understood my concern?

Isn't this sentimental at best? I'm waiting for anything more you have to say. But the form and the new policy is fine, not targeting a tribe. We should really stop pointing fingers at who's left to get away with illegality, and follow due legal process.

philips70:
Please read the two attachments carefully.

Thanks

Brilliant! Waiting for @Truckpusher and all other complainers to respond to this.

erico2k2:
apparently not u forgot form M.

That's not true. You can wire transfer from any Naira account to any country. That's one of the reasons for the policy: to encourage using our Naira for transactions, and limit the high volume of Dollar circulation in the nation. We're in Nigeria, use Naira.

adconline:
Pls how can u pay with bank transfer when your dom account if not funded because your bank doesn't accept $€¥ in ur dom account?
Your bank-issued debit card transaction daily limit is $300 equivvalent...it's going to take u 166 days-5-1/2 months to pay off ur invoice

What's stopping you from legally converting that $50K to Naira and conducting your wire transfer? You can still do that, can't you?

adconline:
Put things in perspective, so u want to bring in goods wortj of $50k into Naija, it's going to take u 10 trips abroad...

Why make any trip just to pay for goods? Note, I said just to pay, not other reasons.

Again I ask, why can't you pay your seller through wire transfer? Naira to whatever currency?

funkiebully:
Convert dollar to naira or what? Do they transact in naira?

Yes, at the official conversion rate - Naira to whatever currency their partner needs. If it's Dollars, then a double conversion unfortunately. Nigerian currency is Naira, isn't it? What am I even saying, we have a hard time valuing our things, including our own currency.

funkiebully:
Young man, tell me how those that had dollar on them before this policy can transact in bank when banks no longer accept dollar deposit?

You can still convert your dollars at the bank, and conduct your transactions. What's your point?

funkiebully:
In as much as I want to agree with u partly, I won't fail to point out to u that the present policy of PMB on forex transaction is killing business.

Have u wondered why this kind of arrests were not occurring before?

These traders used to buy dollars from those BDC mallams, pay in the cash into their dom account and give instructions to do banker to credit the chinese manufacturers.

Now all of a sudden buhari brot a policy that cash deposit to dom account must stop.

Some of these traders already have dollar purchased, in fact majority of them keep their money in dollars cos fluctuations affect them too as per losses when dollar appreciates.

So with these dollars on them, they can't pay into their dollar account, do u expect them to burn d currency? Why must govt give a fiat order on economic issues that affect d economy without thinking of the consequences?

U cant tell me these traders are not aware of PTA & BTA which are $5000 & $10,000 respectively, they have to make out ways of spending their hard earned money in dollars which they can't transfer cos of d silly policy of PMB.

On the arrest issue, why are they not arresting those mallams who politicians are now using to discard their looted and starshed dollars, thereby transferring d risk n potential of arrest to traders. Why didn't EFCC arrest d mallam that sold them d dollars? There are elements of witch hunt and economic starvation to this policy n selective arrest.

So, the government should compensate them for doing their conversions in the black market? You realize this is part of what's killing us?

The arrests didn't occur, and so what should've been stopped became normal - still didn't make it right.

If they have dollars on them and need to conduct international trades, they can still do that at the bank. People cry because it'll cost them a bit more now, but that's a tactical way of strengthening our currency and encouraging transparency.

You just can't break a law and complain because you know politicians do it too. Two wrongs don't make a right. Instead, play your part, then use the proper channels to expose those that break the law.

badnature:
@petikal so if I understand you well,knowing how to do transfer is now a big deal? I have been transferring money to shanshuipo in Hong Kong since 2012 until this regime now came along with his sentimental policy.last month I travel to Hong Kong through kano because I realized the are not collecting money from northern airport as I was told and I try it out it turned out to be truth.business people and local politicians houlling money,there are some politician that even give money to some people to go and put it in their account in Dubai and come back,no body arrested them at airport,so what did you call that? I have to leave lagos to kano can you explain the rational behind that type of policy? or are you trying to tell me that there is a method of transfer peculiar to you alone that DIAMOND BANK,GTB,&SKY BANK are not aware of?

What's stopping you from doing a wire transfer using your bank at the official rate? The "new policy" didn't change that. Is it too inconvenient for you, or the rate is too low? Do you see my point here?

My people, please stop this conspiracy BS! This is NOT a plot against Igbos, and I'm one. This is policy enforcement.

I can bet these traders know fully well they can do all their transactions at the bank with the official rate and within the permissible limit, but they choose to do things illegally as some (or many) Nigerians often do.

Things have become so bad in this country that any little law enforcement takes us by surprise, and we find excuse to cry for breaking the law. We cry foul against our leaders, when we can't even quietly do our little part! How many of us boldly confront security personnel at the airport that ask for pocket money? Or the police? At best, we smile/joke and walk by.

In civilized countries, you can make transactions through the bank worth millions of dollars, and yes they have daily/weekly limits too for anti-money laundering. Nigeria tries to do the same, and we cry foul. Pathetic!

Wake up, and play your little part in making this country great! Stop pointing at politicians who break the law. DO YOUR PART!

badnature:
@petikal are you leaving in Nigeria or equatorial guinea? you can not transfer money out side this country be it naira or foreign currency.if you are not informed about issues you keep quiet.most of you people have never travel out of this country,your not a business man so I don't expect you to understand what is going on in Nigeria.most of you people here of RECESSION on CNN but you don't have any idea what it is,but it coming

Talk about being misinformed. Who said you can't transfer money from Nigeria? When? Of course you can! Just do it properly/transparently.

And please, quit the generalization and speak facts, otherwise you won't be taken seriously.

We need to do things the right and civilized way, in a country where illegality has become a norm.

They can legally convert that money at the bank, and do money transfers at the official rate to wherever they wish. That's how civilized countries do it. That's one of the ways currencies and economies are strengthened - through transparent transactions and accountability!

Quit complaining, people, and do the right thing. We all have our little parts to play to stir this country right!

Martiyu:
Would like to relate with you on the subject above. How may I add you?

Add me on NR or offline? I'd rather we discuss here.

Harkynkunle:
Thanks for d contribution sir... before d bid, i had d total sum of #840,000 in my account, i bided with #820,000 with d balance of 20# in my account...i went with d bank's provided rate which was 10.5% as at then.... even @ d@ my least expected return is 840,000# instead of 831,000# given (d@'z an interest of 11,000# instead of 20,000#).... quite sure it's t.bills

That's approx 5.38% on 3 months, even lower than most FDs. How did you bid with N820K and had only a balance of N20 when it was successful? Something doesn't make sense. If the bank was offering 10.5%, then you should've have around 21.5K (minus custodian fee) in your account upon a successful bid in June.

I've never heard of FBN messing up on TBills.

Harkynkunle:
am surprised by what fbn did to me..... what actually happened is that... i placed a bid of #820,000 for 3 months (june - sept 2015) @ 10.5% which is expected to yield @ least #840,000 (capital included) @ d end...
surprisingly, @ d end of d tenure what i got was #831,000 instead of my expected and due amount... am confused, though i've made a contact with first bank and they promised to get back to me...
pls gurus in d house help have an insight on this...

That makes no sense. Are you sure this was TBill? Sounds like very low interest fixed deposit.

When they deducted the money in June, how much was taken and how much was left in your account? You should see that in your alert. Was the details on the alert how you arrived at 10.5%, or did you go by what CBN offered for that period? CBN rates are almost always slightly higher than bank's winning bids.

timothy001:
If you sale a Real estate worth over Naira 100M, and you looking up another bizness let say starting up a filing station!...Then u stumble upon this thread figure out ..you could put the fund on TB and get 14% annual or go with your filling station plan but not sure that could generate 10% per annum of the said amount . Which would you do and why...(The said property sold r family house.)

cc
feelamong

The beauty of physical assets is in the appreciation value over time - something that doesn't really happen with cash and definitely not Naira. But physical assets require work, and a level of stress management with maintenance costs, taxes, uncertainty in customer volume, etc.

TBill is stress/tax free, but you risk having your capital lose value due to inflation or currency devaluation - same factors that'll increase the value of your physical asset. So, that's it, take your pick.

By the way, didn't you ask this question almost 2 years ago? I suppose the answers weren't satisfactory.

Naijainvestor:
Reinvestment risk is the risk of not finding appropriate investment when one investment matures. If you invest in FGN Bond with 15% coupon for example and maturity of 25 years, you are assured of the 15% for that period whether interest rate goes up or down.

On the other hand if you invest in TBill that pays 15% for 364 days, you are not sure you will get another one with similar interest after 364 days. That is what reinvestment risk is all about
To compare coupon bond with a discount instrument, you need to calculate the bond equivalent yield otherwise you will be comparing apples and oranges

That reiterates my point then. FGN Bond interest is fixed regardless of fluctuations in the economy - a good thing if the economy remains stable or improves. An improvement means low inflation, and generally a prolonged healthy economy in all areas - something we're yet to attain. Following historical patterns of the country seems to suggest that there are particularly good periods to invest, e.g during elections (more money volume in circulation), and during recession.

You may not get the same interest on a TBill upon maturity, but it's not guaranteed to be low, it can be higher. Add immediate interest reinvestment to that, and it's even a better true yield.

Note that I'm not discrediting bonds, there's a place for it.

If you properly study any system, you can always get it to work to your advantage.

Naijainvestor:
You cannot compare TBill and Bonds just like that. To do the comparison you have to calculate the bond equivalent yield for the TBill
You also assumed that you will get the TB at 14% for the entire 5 years which is most unlikely
You forgot that TBills have higher reinvestment risk than bonds

Good try though

Just wanted to chip in.

For the benefit of our readers, can you explain how TBills have a higher risk, considering the advantage of immediate reinvestment of 100% of interest for higher gains?

If I go for a long-term bond, the rate will be locked, which will be to my advantage if the economic situation in Nigeria gets better (a rare feat). But if inflation and currency devaluation continues, then TBill remains a better and more flexible option.

Lionhearted:
Assuming I bought T-Bills via Bank A and the said Bank A goes under before maturity, what happens to my investment?

Your contract is with CBN, not your bank. CBN will find a way of returning your capital upon maturity.

mekaboy:
If Nigerian goes into recession in 2016(God Forbid) what will be the effect on tbills and bonds? Will the govt still pay the agreed interest on investment ?

Unless they make drastic changes to policies, or the nation ceases to exist, TBills and bonds have always been one of the safest and stress-free investment instruments.

When you understand how this works, you realize why even banks discourage their customers from doing it. The chance of what you're thinking of happening is very very slim. Recession will actually cause the interest to go up, as FG looks to give higher incentive for borrowing from her citizens to stimulate the economy. That's what these things are: FG "borrows" from you to finance projects or mop up excess money in the system.

jaynert:
good day, pls can any one give guidelines about first bank and TB.. probly someone who has done d Tb there before or someone who works there. pls reply

Walk into a First Bank Branch, tell a rep that you're interested in Treasury Bills, and the period/tenor of your choice (3 months, 6months, or 1year). They should give you a form to fill out. If they try to dissuade you in any way like advising you go for fixed deposit, please don't listen. Fill out the TBill form, once it's been processed and bid is successful, you'll get an alert telling you how much was deducted, and from there you can calculate the interest.

It's that easy.

osile2012:
[size=18pt]What does true yeild mean ? In the CBN website, i saw marginal rate 14.69 for 364 days TB and true yield of 17.2114 . Can someone explain which will be the interest on investment ?[/size]

It's another way of saying that if you reinvest your initial interest, and the interest from that interest, and so on, you'll end up realizing more than 14.69% of the initial capital. That's the advantage of getting your interest up front.

Five minutes into Frank Edozie’s presentation on the challenges facing Nigeria’s power industry, the electricity cut out in the Jasmine Hall at the upmarket Eko Hotel in Lagos.

“Very timely,” Edozie, a former power ministry adviser and a senior consultant to the U.K.-funded Nigerian Infrastructure Advisory Facility, said over the low muttering and laughter of an audience of more than 100 people. “We probably ran out of gas.”

There’s no end in sight to the daily blackouts that the government says are costing Africa’s largest economy about $100 billion a year in missed potential and that President Muhammadu Buhari calls a “national shame.” Gas shortages, pipeline vandalism, inadequate funding, unprofitable prices and corruption mean fixing the electricity cuts two years after a partial sale of state power companies to private investors won’t be easy.

Generated output has never risen above 5,000 megawatts, which is about a third of peak demand, and if it did the state-owned transmission system can’t deliver any more than that before it starts breaking down. South Africa, with a less than a third of Nigeria’s population of about 180 million, has nine times more installed capacity and it too is grappling with blackouts.

Nigeria, Africa’s biggest oil producer, ranked the worst of 189 countries after Bangladesh and Madagascar on the ease of getting electricity connected to businesses, costing almost 7 percent of lost sales each month, according to a 2015 World Bank Doing Business report. The power bottleneck comes on top of slump in oil prices and currency that are threatening Nigeria’s role as a destination for investors. Economic growth slowed to 2.4 percent on an annual basis in the second quarter from 6.5 percent a year earlier.

About two-thirds of Nigeria’s people have no access to electricity, and at the current plant commissioning rate, supply will barely meet 9,500 megawatts by 2020, according to a 2014 World Bank project document. Demand is expected to increase 10 percent each year. Buhari’s party promised before he won power in March’s election to generate 40,000 megawatts within four to eight years.
For years the industry’s poor performance has spawned jokes about the former state electricity company’s name. Nigerians called the National Electric Power Authority "Never Expect Power Always," and when its name was changed to the Power Holding Company of Nigeria a decade ago, they mocked it as the “Problem Has Changed Name.”

Hopes Dashed

Hopes that the power situation would improve after former President Goodluck Jonathan partially sold off 15 state generation and distribution companies for more than $3 billion to private investors two years ago have been dashed.

The buyers included locally owned companies such as Forte Oil Plc, Sahara Group and Transnational Corp. of Nigeria Plc, along with foreign technical partners such as Korea Electric Power Corp. They found the companies they bought weren’t financially viable, and the distribution firms mounted with debt started hemorrhaging cash. Last year, “the financial flows in the sector came close to collapse,’’ the U.K.’s Department for International Development said in a December 2014 report.

"There wasn’t much due diligence done" because strikes during the sale period blocked access to the utilities, said Dolapo Kukoyi, a partner at Lagos-based Detail Commercial Solicitors, which advised investors looking to buy the distribution companies. “People basically bought blind -- this was across the board.”

Bailout Package

Nigeria’s central bank designed a 213 billion-naira ($1.1 billion) bailout package to cover revenue shortfalls and help the companies meet debt-service obligations on bank loans of almost 500 billion naira. The power industry still requires as much as $20 billion of investment in the next six years, according to Benjamin Dikki, the director-general of the Bureau of Public Enterprises, which led the sales.

Even after the sales, bribery of electricity workers by some diesel generator and fuel suppliers to organize household and business blackouts in order to boost sales is continuing. Diesel generation costs 30 cents to 50 cents per kilowatt-hour, compared with the average grid tariff of 13 cents, according to the World Bank. Timothy Oyedeji, a spokesman for the Power Ministry, didn’t answer two calls and a text message seeking comment.

“Criminality is still there," said Bokar Toure, a senior energy economist in Abuja, the capital, for the African Development Bank, which has lent and provided guarantees to Nigeria’s power industry. "Just because it has been handed to a private company doesn’t mean it’s going to end.”

A Senate committee started investigating corruption in the power industry on Sept. 8. Its hearings were disrupted on Wednesday by a series of electricity cuts in the chamber. The generation companies have battled with chronic gas shortages used by 70 percent of the plants, despite Nigeria holding Africa’s biggest reserves of more than 180 trillion cubic feet. From December to June, rampant pipeline attacks reached levels last recorded at the peak of a 2006 to 2009 militant insurgency in the oil producing Niger River. They’ve slowed since then.

Tariff Cuts

Government-set tariffs have also hampered the distribution companies. Just before the elections, the regulator banned them from charging consumers for losses caused by billing mistakes, effectively cutting the tariff by more than half in some areas. This caused most of the distribution utilities to declare force majeure, claiming they couldn’t pay for their power supply.

Up the chain, generating companies say they haven’t received payments from the state-owned Nigerian Bulk Electricity Trading Plc, which acts as a middle man between them and the distribution companies. And because the distribution utilities haven’t paid about 20 billion naira owed since February, payments to the power plants have slowed, said Rumundaka Wonodi, chief executive officer of NBET in Abuja.

No Minister

While NBET has enough cash to make the market payments for five months, the money is there to cover breakdowns and the company doesn’t want to deplete the funds without the agreement of the power minister, Wonodi said. Problem is, Buhari hasn’t filled that position more than three months after taking office.

“We cannot prop up everyone,” Wonodi said in an interview.

The generation companies are also feeling the pinch. The 30-year-old Egbin plant in Lagos, which is owned by Sahara and Korea Electricity, is owed almost 44 billion naira for December to June, along with 22 billion naira of past debt costs. “We’ve never broken even in 2 1/2 years,” Egbin Chief Executive Office Dallas Peavey Jr. said in an interview at the plant. “If it wasn’t for Sahara to be quite honest we would have shut down about three months ago.’’

The national grid is another bottleneck. It needs about $40 million a year just for maintenance, compared with the $1 million now allocated by the government, Peavey said. Nigeria’s aggregate technical, commercial and collection losses are 35 percent of total generation, according to the World Bank.

Buhari said last month that he recognized that transmission was a greater problem than generation and his administration was taking action to boost supply. “We’re at the end of our rope,” Peavey said. “We keep urging them to make concrete permanent steps because without that, quite honestly, we’re going to shut down.”

Source

mekaboy:
Hello pple, please i want to verify the info i got from a friend on bonds.

I was told bonds are like treasury bills but interest is paid every 6months. He also said interest is as much as 15%.

That if i invest 1m for 2020, that i will be geting about 75k every six months for 5yrs.

Pls how true is this?

Is the 2020 bond still on sale?

How do i invest in bonds. Is the money with the bank or cbn.?

Can the fg reduce ur interest as the year goes on?

Please enlighten me on bonds.

Yes, bonds are like NTB, just longer tenors and bi-annual payments. Both contracts have no VATs and are with CBN, not your bank. The interest you agreed upon is locked in - doesn't change during the duration of your contract - regardless of future sales rates or economic shifts.

Your questions are addressed on CBN website, visit it and get enlightened.