₦airaland Forum

oluwaleokey:
Well done Senior men them...
Please I would appreciate an advise on a business proposal... someone due to (marriage) relocation wishes to sale off his business services (one off payment) that makes about a minimum of 100k profit per month (verified & confirmed), this business has existed for two years plus...

Long story short, he has refused to mention any price rather kept saying I make an offer...
Really don't know how to analyse or calculate what to offer for such deal...
Any clue or hint on how best to negotiate on this will be appreciated... I no wan over offer....
Just hope the guy self no dey this thread ni

Just to add to my earlier post. Some of your senior men them may just give you an amount based on applying an arbitrary multiple to the 100k ‘profit’ without making adjustments. But the problem with this is the following:

1. Is the company in an industry that is growing? Is there still room for the business to keep growing in its industry? What’s the point of paying guy man big money for a company wey fintech or new innovators don dey enter to disrupt and take away market share?

2. Even if the industry dey grow, can you run the business and be making the same 100k wey the guy dey make? As one of your senior men said, a correct barber shop wey dey depend on the skills and loyal customers wey the former owner get cannot expect the profitability to continue when a new person buys the business. Many of the loyal customers will japa leaving new owner to start afresh.

So even if you decide to just apply an arbitrary multiple to the earnings to arrive at a price, adjustments must still be made to reflect the growth of the company/industry and the value wey the previous owner was bringing that you probably will not have.

Only an expert can guide you on how to apply the multiple and make these adjustments.

Good luck!

Lazyyouth4u:
I no be one of your senior men them. Just a lazy youth but here are my lazy thoughts sha

You say 100k profit per month. Is that truly profit (after deducting all costs and expenses) or is it just revenues? You need to be sure about that.

There are different ways to value a business and I will try not to get too technical.

1. If you know anyone that has bought similar businesses, how much did they pay? You can use the multiple they paid and apply to this business proposal after making some adjustments.

2. Discounting the future cash flows. You will need to make projections of the money the business will be making in the future and then discount using relevant cost of capital

3. Net asset value of the business. If na business wey get hard assets simply find the market value of these assets and deduct all known debts and liabilities.

As you can see, it is not as simple as just coming on a faceless forum to ask how much to pay for the business.

I advice you to find correct person wey dey work for better investment bank and pay the person small money to help you look into it and do some analysis. If you are really serious about it, I’m sure you will be willing to part with 100k or so for this service if the business make sense.

Senior youth...
The 100k profit is actually after all costs and expenses although I had already made some research plus I trust the judgement I would likely get here couple with me little experience, I want to believe that would be fine as against seeking advise from an investment bank worker...
Thanks Senior youth
Appreciate your advise

ahiboilandgas:
a certain skill must be required even if na customer retention skill,human resource management skills etc to maintain or improve the current income...

You are absolutely right sir,
the platform would make it easier to achieve this... I equally intend to retain employee or a lil reshuffle to balance things up

oluwaleokey:
Senior youth...
The 100k profit is actually after all costs and expenses although I had already made some research plus I trust the judgement I would likely get here couple with me little experience, I want to believe that would be fine as against seeking advise from an investment bank worker...
Thanks Senior youth
Appreciate your advise

Okay boss. Wishing you all the best!

Lazyyouth4u:
Just to add to my earlier post. Some of your senior men them may just give you an amount based on the 100k ‘profit’. But the problem with this is the following:

1. Is the company in an industry that is growing? What’s the point of paying guy man big money for a company wey fintech or new innovators don dey enter to disrupt and take away all market share?

2. Even if the industry dey grow, can you run the business and be making the same 100k wey the guy dey make? As one of your senior men rightly said, a correct barber shop wey dey depend on the skills and loyal customers wey the former owner get cannot expect the profitability to continue when a new person buys the business. Many of the loyal customers will japa leaving new owner to start afresh.

So even if you decide to just apply an arbitrary multiple to the earnings to arrive at a price, adjustments must still be made to reflect the growth of the company/industry and the value wey the previous owner was bringing that you probably will not have.

Only an expert can guide you on how to apply the multiple and make these adjustments.

Good luck!

Senior you don almost confused me
Presently carrying out a swat analysis and feasibility studies of the said business
Location place a key role
In this case the location (platform) is quite hot... so even with the lesser skills like oga ahib mentioned it can still thrive let alone when we come on board with an innovative method of running same business... I hope you sha get the point, you know our grammar dey sharp

ojesymsym:
Hmmm interesting.

If you are not comparing Apples with Oranges then the difference between the two graphs are too glaring. You have not even accounted for devaluation of the naira since then.

Good thing you brought this up, I recently have already made up my mind to also diversify into the US market. I am trying to avoid Trove and the different fintech apps, I know portfollo seem to be popular on the US stock thread but my own research is leading me towards swissquote and iq options, the registration pages have Nigeria in them so I am assuming they accept Nigeria in them. Is that something you are familiar with.

Laxyyoot, abeg help me wear your black hat check those foreign app. I know the first huddle of whether or not u live US stock has been jumped na just weda those 2 apps pass your stress test remain.

I don’t see anything wrong in using the accredited fintech apps that make it easier for Nigerians to buy US stocks. They don’t invest your money. You make all your investment decisions and only use them as a platform to invest. Your money does not stay with them but goes to brokers that help you purchase the stocks. As long as they are using brokers accredited by the US SEC, you are good.

See I am not negative all the time. Sometimes I wear my white hat

Congrats, I hear you have now graduated to Senior Youth.

Anyways, the guys on the US stock thread tend to complain of many juicy stocks not being listed. In any case still help me look those 2 foreign firms if it is convenient for you.

Lazyyouth4u:
I don’t see anything wrong in using the accredited fintech apps that make it easier for Nigerians to buy US stocks. They don’t invest your money. You make all your investment decisions and only use them as a platform to invest. Your money does not stay with them but goes to brokers that help you purchase the stocks. As long as they are using brokers accredited by the US SEC, you are good.

See I am not negative all the time. Sometimes I wear my white hat

ojesymsym:
Congrats, I hear you have now graduated to Senior Youth.

Anyways, the guys on the US stock thread tend to complain of many juicy stocks not being listed. In any case still help me look those 2 foreign firms if it is convenient for you.

From Lazyyouth To Smartyouth and now to SeniorYouth

So much love the Transition.....

A lot to learn here ...A Whole Lot

Thanks to the Active Contributor on this Thread ..you all have save Lifes and the Amount of Information that have gain here and still gaining has helped me and my family .

God Bless you all is my prayer

emmanuelewumi:
Calling people on your contact that one is owing is quite wrong. I expect someone to test this in the court, it is breach of privacy. The person will cash out, the money will definitely be bigger than the amount owed.

I am okay with the average 25% per annum which I get from my banks, instead of 50% to 60% per annum from loan sharks

The sms message being sent to people on the contact list is even worse. The sms message insinuates that the person is a criminal and is on the run. Imagine that.

emmanuelewumi:
Calling people on your contact that one is owing is quite wrong. I expect someone to test this in the court, it is breach of privacy. The person will cash out, the money will definitely be bigger than the amount owed.

I am okay with the average 25% per annum which I get from my banks, instead of 50% to 60% per annum from loan sharks

My oga, loan collectors will do anything possible to collect their loans o. Especially from the defaulters they know are living large but have refused to repay their loans.

The Nigerian loan collectors dey learn work where the ones abroad dey. The ones abroad are ruthless and they will find and hound you with everything they have until you give up and decide to negotiate with them.

In Naija, you can run to your village and hide. Abroad you have a whole lot to lose except you decide to run back to Naija. Of which they are even beginning to track down Nigerian loan defaulters that have run back home to hide

emmanuelewumi:
You are either registered by SEC or you are not, those who take deposits are either registered by CBN or they not and the deposits are insured by NDIC. Most actually use microfinance bank licenses. You need less than N50 million to own a microfinance bank, so I don't expect an informed depositor or investor with N100 million to say that is where he will invest his fund. It is okay for depositors with N2 million and below to safe lock their funds with them

For SEC registered fund managers, all their funds have different Trustee arrangements with Trust deeds.

A fund manager that has a money market funds, fixed income fund, Eurobond Fund, Equity fund, Balanced fund, ethical fund, Sukuk fund and REIT.
Will have a Trustee for each of the funds, each fund has a Trust deed. You can always get a copy from SEC.

The account number funds are paid is a joint account, that is operated by the Trustee and the fund managers, monthly reports about the account and fund are sent to SEC.

It is always very important to do our due diligence and ask questions.

I have made enquiry to SEC about some of the new operators and their so called Trustees which SEC claimed to be ignorant of the arrangement.

SEC is aware of all Trust accounts, you can approach any of the Trustees to open one for your children, loved ones, business or transactions in order to safeguard your interest and their interest.

Which of the operators did you make enquiries about? Be specific. You cannot be making broad generalisations. Yes, microfinance banks do not require as much capital as commercial banks but I put it to you that a MFB like Kuda is in a much better position than say Unity Bank.

arduino:
I had to read his post three times to be triple sure that eyes were not sending the wrong prints to my brain.

Honestly, I just wish the guy can come back to answer us.

Lazyyouth4u:
If you think it through, you will understand. But because it is lazyyouth, you refuse to because of the bias against the person.

Do you know the magic you can do by successfully marketing an illiquid stock on a public forum full of people with cash looking for where to put it? You are seriously underestimating the number of people that read these investment threads.

If they decide to go and buy the illiquid stocks, demand will push up the price and a market is created for people trying to sell on the exchange. It doesn’t have to be a direct sale.

Ps: it is called illiquid for a reason. Sellers find it very difficult to sell the shares on the exchange until buyers show up.

God bless you

ade101:
I can see guys are exploring alternatives now that tb rates are not attractive. I can't thank God enough for making me take the courage to diversify into real estate. I keep asking people the average rental returns from building house, trying to compare with my stable and guaranteed investments (I do tb and Stanbic Money Market) but I could not get an actual value. Many variables involved yet I didn't give up, started meeting people, engineers, real estate agents, and eventually, I realized there's nothing to be scared of... I emptied my money market, buy land for ajah, get seriously involved to minimise cost.

Bought land at lakowe, Ajah for 3m half plot
Built 8 units of room and parlour self contain (4 on the ground floor and 4 at the top)

Total spent about 13m

In total spent about 17-19m

Started renting out and within 5 months, all units has been occupied @ 350k annual fee (agreement and commission took the first payment to 450k)

Total return from rental first year: 3.6m (450 X

Expected annual returns onward : 2.8m


In percentage :

First year : 20 percent return on investment

Expected annual return onward: 15.5 percent


There was a time I got this value from tb (2016 - 2018), money market has always been around 13 percent at peak for me.

I'm just glad I now have a stable return of over 15 percent without worrying about rates dropping...


To blow your mind : I have just been introduced to developer style of real estate... I have already signed a property self.. Cost of buying land and building from ground up (foundation construction) is off... Based on the site engineers quotation, with 6m, we should finish the renovation work and paint the building. Family one off payment was 1.5m so in all, about 8m should finish everything. They are leasing the building to me for 12 years and annual returns expected is about 3.2m.. That's over 35 percent return annually.

I don't think I will ever go back from real estate...

That's my personal experience, so if anyone is looking for alternative, do your findings on real estate. And be careful, don't cut cost, always go through a reputable lawyer, they are not that expensive, street is hard even the lawyers fees are now negotiable lol... All the best.

You mean the Ajah in Australia, that's cool. Because the Ajah in Lekki, you will do foundation, lintel, plumbing, toilets equipment, roofing, decking, tiles, painting not to mention cement is 3500 currently

Lazyyouth4u:
To be very honest and if you read my comments, you will notice that I only reciprocate the vileness to the riff raffs that think they can use insults to shut me up because I am going against some of their so called gurus that they believe are always right and can never be wrong.

As an investment professional, I always do my DD na and digging through old posts to know the background of the individuals is how I do this here . If it was not allowed, NL would have prohibited that feature. And honestly anyone that has nothing to hide shouldn’t fear that.

Sadly, when I dig through i find out that most of the people here are fake, audio liars with ulterior motives.

Thank you for the digging.

jedisco:
While I understand the need for caution while investing, it's interesting you equate crypt0 to ponzi...

That you don't understand something does not mean those who do are wrong. A good number of Nigerians don't understand Facebook or Twitter, it doesn't stop those platforms from having revenues that a lot of states combined don't have. Moreso, those platforms affect the day to day running of our nation (e.g SARS protests)

Coming unto investment, there's the inherent risk of volatility in trading crypt0 (just like any other market) moreso when folks move away from Bitc0in. But what are the alternatives for a young savvy investor? I'm sure if it was TB's or the NSE young Nigerians were trooping to, you wouldn't call it ponzi...

Taking a look at the NSE, most of the older folks there have no idea they have been loosing money in real terms over the years. I've pointed out here that someone who just kept money in dollars 10years ago would have outperformed over 95% of NSE traders over the last decade.

We keep hearing FUGAZ as the posterboys of the NSE... Take a look at the FBNH monthly price chart for over 10 years (though likely bottomed) and tell me how an average person made money on it just in naira terms (let's leave devaluation first)? A 30 year old who bought $100 worth of FBNH in 2010-'11 at an average of 11 naira per share will have stocks worth less than $17 today (dividends aside- which are even more pitiable). Imagine the case of those who bought at 15 naira. Is that what you want a young Nigerian to invest his sweat in? A market where you're almost guaranteed to lose money?

I've personally gone through individual stocks on the NSE 30 for the last decade and beside a few, almost all are in a pitiable state. Compare that to stock prices of household US companies and you see the difference. That young Nigerians are leaving their local market to invest in the U.S stock market should tell you something. Money is like water, if old folks had made money in a market, new players will troop in.


Bitc0in on the other hand has been about the best performing asset of the last decade. If I was going to risk investing, I know where to belong.

If you want you young folks to troop into local investment options such as the NSE, then the narrative should be fixed.

seyisanya:
Very true. That's why young investors need to understand what they are doing and not get carried away with the fact that they're still young so they can take higher risks. Hence, they get involved in all sort of Ponzi schemes and buy any coins in the name of crypto investment.

Am I missing something? Where in my post did I equate crypto to Ponzi?. Can you please read my comment again, this time around, read it to clearly understand my point and not necessarily to reply. Thanks.

einsteine:
Which of the operators did you make enquiries about? Be specific. You cannot be making broad generalisations. Yes, microfinance banks do not require as much capital as commercial banks but I put it to you that a MFB like Kuda is in a much better position than say Unity Bank.

I said I made enquiry about some, how can that be a broad generalisation.

I made enquiries about 3 that are popular and SEC claimed not to be aware of their funds

You can make your personal investigation

emmanuelewumi:
The cost is low, how much did you spend on the foundation, how much for the decking, how much for the roofing., plumbing, electrical, plastering, painting, tiling, furnishing.

Can you do the break down for each stage of the project

How come you got 100k per apartment for agreement and commission? Don't you have agents and lawyers and other professional parties to the transaction?


I may be wrong, but something tells me you are trying to market something here.

Agreement: 30k
Commission: 30k
Caution fee: 20k
Rent: 350k
Total: 430k

Agent collected 30k, negotiated the agreement with lawyer and paid him 15k. I took the caution fees. I think I was wrong in my calculations of the first year return which was based on the fact that everything goes to me.


LOL @ market something... Well you are wrong on that. I'm a newbie forming pro cus I was helped. Trust me, I have nothing to offer anyone here rather than explain what I went through as detailed above. So you can have a glimpse that it's possible to achieve. Anyway, the only reason I gave out my experience so far is to help people trying to make a decision. When it comes to building houses, knowing the right people who understands your budget matters a lot.

I was asking people for advise trying to understand how much it would cost me to build a house so I could compare with tb and money market but what I keep getting doesn't come close. Until I open up to my own bros... Then he guided me. First he's into developer style of real estate so he has so much experience with cutting cost. I never really took the time to note down cost for each stage. I could only guess based on what I had. Emptied my money market of 15m after getting a land for 3m half plot. With no income coming throughout last year cos I'm a travel agent and airport was on lockdown..

For those that are interested in how I could complete it with such amount, first I'm in experience, a total novice , but I carried experience people along.

I remember when I first took an engineer to the site, we were discussing his fees. He said 10 percent of the entire cost of the project is the standard he charge and he said the project should be completed with about 20m budget. Therfore, 2m will be his fees. 50 percent deposit and balance when it's completed. I almost quit, because at all at all, something keep dropping every month from money market investment. With about 15m, removing engineer fees about 2m, it means I needed at least 22m to start.

Then I informed my brother so he advised me to let him go. He gave me another engineer, I was there during the negotiations and I was shocked with what I heard. He told the guy his job is to supervise the construction of the foundation, decking, and building of block to fill the shapes. Then any other job will be negotiated if he's interested. He insisted we will only be paying 100k for each. That's a total of 300k.

So we started... Completed the foundation, decking and filled the structure with blocks... Then his contract ended. Then we needed to do plastering, the engineer gave us a quotation. I can't remember the cost of material but service charge was about 1m... My brother said we can't pay that. So he brought in an old man but very experienced from ikorodu, the man happily collected 400k, bring in boys and they completed it within 2 weeks. I use people like that a lot during the building period.

For the roofing, I tried to talk to the engineer again if he could help with the roofing, of which he gave a quotation of 1.5m for aluminum roofing, again I ended up using a guy who did it for 850k inclusive of material.

The electrical work quotation was about 1.5m,
I was advised to remove many things that was included, the targeted annual rent amount was 350k, for that, my brother said I shouldn't waste money on finishing that they will take it. At the end of the day, didn't spend up to 500k on electrical installations. Finally, I went to odunade market in orile to buy tiles and plumbing materials... No way to economise on that as the whole house including stair case needed to be tiled. Spent almost 3m on that. Didn't bother myself with Pop, my bros said pop will only take the rent to about 400k and doesn't worth the expenses.

What I learned:

If you are building for business purpose. You need to know your targeted rental return and try to not over spend..

Also, the amount you spent on a house depends on the people surrounding you, their experience in achieving low cost design and their interest in seeing you succeed with it.

I was just lucky but I believe anyone could do the same. You just need someone loyal, might even be an agent that you have promised will be the caretaker.
.

Lazyyouth4u:
Boss, the micro in micro finance is with regards to the businesses they finance or lend to. That is the micro/SME segment that big banks largely stay away from due to the high risk and transaction costs.

Micro finance banks source their funds from various sources including borrowing from banks, issuing bonds, raising equity, grants and donations and deposits from high net worth and regular/small savers.

They offer the high rates to these high net worth businesses in order to attract the high net worth guys from big banks. That is one of the reasons why they have higher interest rates. Their cost of funds is very high. This in addition to the higher pricing on their high risk (higher probability of default) loans make the interest rates on their loans insane.

Some investors with high risk tolerance are investing in micro finance banks.

Bonds are very secured, banks know how to protect their funds, if you are not an insider in a microfinance banks, I won't advise one to deposit substantial amount of funds with them as fixed deposit unless you have a high risk appetite

ade101:
Agreement: 30k
Commission: 30k
Caution fee: 20k
Rent: 350k
Total: 430k

Agent collected 30k, negotiated the agreement with lawyer and paid him 15k. I took the caution fees. I think I was wrong in my calculations of the first year return which was based on the fact that everything goes to me.


LOL @ market something... Well you are wrong on that. I'm a newbie forming pro cus I was helped. Trust me, I have nothing to offer anyone here rather than explain what I went through as detailed above. So you can have a glimpse that it's possible to achieve. Anyway, the only reason I gave out my experience so far is to help people trying to make a decision. When it comes to building houses, knowing the right people who understands your budget matters a lot.

I was asking people for advise trying to understand how much it would cost me to build a house so I could compare with tb and money market but what I keep getting doesn't come close. Until I open up to my own bros... Then he guided me. First he's into developer style of real estate so he has so much experience with cutting cost. I never really took the time to note down cost for each stage. I could only guess based on what I had. Emptied my money market of 15m after getting a land for 3m half plot. With no income coming throughout last year cos I'm a travel agent and airport was on lockdown..

For those that are interested in how I could complete it with such amount, first I'm in experience, a total novice , but I carried experience people along.

I remember when I first took an engineer to the site, we were discussing his fees. He said 10 percent of the entire cost of the project is the standard he charge and he said the project should be completed with about 20m budget. Therfore, 2m will be his fees. 50 percent deposit and balance when it's completed. I almost quit, because at all at all, something keep dropping every month from money market investment. With about 15m, removing engineer fees about 2m, it means I needed at least 22m to start.

Then I informed my brother so he advised me to let him go. He gave me another engineer, I was there during the negotiations and I was shocked with what I heard. He told the guy his job is to supervise the construction of the foundation, decking, and building of block to fill the shapes. Then any other job will be negotiated if he's interested. He insisted we will only be paying 100k for each. That's a total of 300k.

So we started... Completed the foundation, decking and filled the structure with blocks... Then his contract ended. Then we needed to do plastering, the engineer gave us a quotation. I can't remember the cost of material but service charge was about 1m... My brother said we can't pay that. So he brought in an old man but very experienced from ikorodu, the man happily collected 400k, bring in boys and they completed it within 2 weeks. I use people like that a lot during the building period.

For the roofing, I tried to talk to the engineer again if he could help with the roofing, of which he gave a quotation of 1.5m for aluminum roofing, again I ended up using a guy who did it for 850k inclusive of material.

The electrical work quotation was about 1.5m,
I was advised to remove many things that was included, the targeted annual rent amount was 350k, for that, my brother said I shouldn't waste money on finishing that they will take it. At the end of the day, didn't spend up to 500k on electrical installations. Finally, I went to odunade market in orile to buy tiles and plumbing materials... No way to economise on that as the whole house including stair case needed to be tiled. Spent almost 3m on that. Didn't bother myself with Pop, my bros said pop will only take the rent to about 400k and doesn't worth the expenses.

What I learned:

If you are building for business purpose. You need to know your targeted rental return and try to not over spend..

Also, the amount you spent on a house depends on the people surrounding you, their experience in achieving low cost design and their interest in seeing you succeed with it.

I was just lucky but I believe anyone could do the same. You just need someone loyal, might even be an agent that you have promised will be the caretaker.
.

Very good, that is my style. Always good to carryout your research, negotiate and discuss with the workmen from an informed position you will be surprised at the costs you will save

From what you have described here.
You weren't going for anything fanciful. I did not see you mention painting which implies that tenants handle their painting.
Demographics also for such a building is usually bachelors, spinsters, newly married, single mothers, young families and those with families outside town who just need a place to go to and fro work.
I am surprise that people are willing to pay that amount for rent in that axis though.

Another thing is that in about 15 years, God sparing our lives, some big shots will entice you with money to sell especially as that axis is drawing a lot of attention.

ade101:
Agreement: 30k
Commission: 30k
Caution fee: 20k
Rent: 350k
Total: 430k

Agent collected 30k, negotiated the agreement with lawyer and paid him 15k. I took the caution fees. I think I was wrong in my calculations of the first year return which was based on the fact that everything goes to me.


LOL @ market something... Well you are wrong on that. I'm a newbie forming pro cus I was helped. Trust me, I have nothing to offer anyone here rather than explain what I went through as detailed above. So you can have a glimpse that it's possible to achieve. Anyway, the only reason I gave out my experience so far is to help people trying to make a decision. When it comes to building houses, knowing the right people who understands your budget matters a lot.

I was asking people for advise trying to understand how much it would cost me to build a house so I could compare with tb and money market but what I keep getting doesn't come close. Until I open up to my own bros... Then he guided me. First he's into developer style of real estate so he has so much experience with cutting cost. I never really took the time to note down cost for each stage. I could only guess based on what I had. Emptied my money market of 15m after getting a land for 3m half plot. With no income coming throughout last year cos I'm a travel agent and airport was on lockdown..

...

What I learned:

If you are building for business purpose. You need to know your targeted rental return and try to not over spend..

Also, the amount you spent on a house depends on the people surrounding you, their experience in achieving low cost design and their interest in seeing you succeed with it.

I was just lucky but I believe anyone could do the same. You just need someone loyal, might even be an agent that you have promised will be the caretaker.
.

lavylilly:
Carbon was never been in business for a decade ago they started over 2yrs

Oga ask questions so that you won't miss road oo. They started as One Credit, then One Finance, then Paylater and now Carbon.

freeman67:
Okay, how about this?

Read na please.

Anything above 8% are most likely retail investments na, from Agritech, Real estate e.t.c. I don't know what the exact terms and conditions are, but Piggyvest is basically collecting money from you and giving it to all those farms to execute a project. These projects can either fail or succeed.

Unfortunately I don't invest in such, so i don't have full context into the partnership. But these are not the funds managed by Piggyvest themselves, they are in this case just a platform for execution of trades.

Think about it this way: If you bought Unilever Nigeria or Guinness Nigeria shares on Trove in 2020. You would have gone down by 35% or so. Abeg na Trove you go blame for that?

I will only blame Piggyvest if they are claiming to own the responsibility of the performance of these external parties, which i doubt they will agree to.

einsteine:
The ones which are not registered are in partnership with regulated companies. Cowrywise for instance has trusteeship agreement with Meristem and arrangements with other investment companies.

These financial technology companies are not in the same group with MBA Forex which is the impression that one gets reading the critics' opinion. One has to learn to move with the times or be condemned to suffer poor results.

Somebody talked about investing in binance savings products (7-9 percent per annum guaranteed on USD savings) some time ago, the person was attacked because many people on this thread seem to want to live and die by the old ways. Meanwhile, Binance is a bigger institution than GTB and Zenith combined.

Na me be the person. No mind them. Osinbajo once talked about Nexo. Nexo also offers 8%. The day most people here go shock na when them see say even their banks get crypto reserve

And before you guys start asking how they do make money. They offer crypto loans.

emmanuelewumi:
You are either registered by SEC or you are not, those who take deposits are either registered by CBN or they not and the deposits are insured by NDIC.

And NDIC insures up to how much Sir? 500k?

Tobex4realTobex234:
And NDIC insures up to how much Sir? 500k?

Maximum of 500k, reason why we need to study the financials of the banks we do business with especially if you have substantial funds

jedisco:
It's easy to look from outside and see all the money you would have made... Trading aint that easy...

Most folks lose not because of the market, but because they're overtaken by human greed and little trading experience

I totally agree!

Wow! it been ages. Fintech is next big thing in the financial sector.

emmanuelewumi:
Bonds are very secured, banks know how to protect their funds, if you are not an insider in a microfinance banks, I won't advise one to deposit substantial amount of funds with them as fixed deposit unless you have a high risk appetite

How are the bonds of an MFB secure when its deposits are not? Is it not the same cash flow from the operations of the MFB that will pay both bond holders and depositors?

Lazyyouth4u:
How are the bonds of an MFB secure when its deposits are not? Is it not the same cash flow from the operations of the MFB that will pay both bond holders and depositors?

Bonds are secured, LAPO microfinance bank raised N5 billion corporate bond. Bonds are regulated by SEC, can you give an example of a corporate bond that went bad in Nigeria?

There are Trustees to the bonds that make sure investors interest are protected and make regular reports to SEC, they obtain enough collateral securities from the company, they will become signatory to the accounts of the company and directors or nominate directors of the company for the duration of the bond,

emmanuelewumi:
Bonds are secured, LAPO microfinance bank raised N5 billion corporate bond. Bonds are regulated by SEC, can you give an example of a corporate bond that went bad in Nigeria?

There are Trustees to the bonds that makes sure investors interest are protected, they obtain enough collateral securities from the company, they will become signatory to the accounts of the company for the duration of the bond,

Oga see MFB wey you call, those ones are super micro finance na

SMJay:
Oga see MFB wey you call, those ones are super micro finance na

99.9% of microfinance banks
in Nigeria can't satisfy the stringent requirements of SEC for bond issuance