Edukpo:
Please, any ntb update?

RayRay06677:


It's my first sukuk, equally waiting for this answer,

Thanks a million for answering

Wotowotoman:


What has my statement got to do with entrepreneurs

You are a very dull person

Your bad grammar and lack of critical reasoning skills are enough to justify my statement….

Dum20:


I asked them about the management fee, they said the management fee is spread across all investors, so would be negligible. What they are saying is that not one person will pay the 1.5% but is spread across the investors

emmasoft:


There is NO risk-free investment anywhere.
However, there are degrees of risk- we have Low risk, Medium Risk, and High Risk. The ease of capital loss is what informs the categorization. Stanbic IBTC is telling you the obvious so that you can be well-guided in your investment decision which is the professional norm.

All Bonds of any form are in the medium risk category, MMF in the Low risk and Stocks fall under the High risk. Investors' abilities or willingness to cope with each of the categories is what places them under the conservative ie low-risk tolerance or aggressive or high-risk tolerance investor.

jedisco:


As of the time Nigeria was issuing eurobonds at 8%, most of the developed world was issuing theirs at less then 2%. The minister of finance then kept sadly repeating that their oversubscription shows confidence in the economy. I remember asking here how Nigeria would afford to pay back. Little did we know CBN had eaten deeply into our reserves.

How can Burundi afford to borrow usd at 8x the rate of Germany? A main reason why there is a long list of developing nations who have defaulted on their commercial loans.
The bond market today is much different today with the US benchmark rate above 5%. Most big investors can get relatively good returns on their cash without needing to delve into the murky waters of commercial debt by developing nations.

I agree, a basket of funds under one instrument is less risky.. but then, you have to deal with high management fees and trust the issuer.

freeman67:


Savings account with them can be open from the comfort of your home. In fact on your bed. The requirements are your utility bill, valid ID and an android or IOS phone. Your passport will be taken while opening. Then download the app and set it up. That's all.

However, I don't know how easy a Dorm account is with them. For other banks, your will need like 2 Referees who have a current or dorm to attest to your capabilities/suitable of maintaining the account in written form.

Dum20:



They did not add the part below as seen on their website.

It is an[b] open ended Fund [/b]
The risk profile is “Aggressive”
The expense ratio is 3.5%
The management fee is 1.5%

jedisco:
When I look at folks/companies CBN says its trying to protect by giving them cheaper forex, it's even more annoying...

Take 2 examples...
Take nestle and the rest... These companies have operated for decades in Nigeria... But then, they'd rather go to their parent nations to import milk and sell here when it'd be cheaper to produce that here.. What does CBN do? Give them access to forex so they can maintain profitability of farmers in Netherlands....
A sensible approach would be to let them dource forex at market rates, double tax whatever milk import they make and in turn, give tax holidays and grants to whatever company that decides to build local infrastructure...


Same can be said of petrol subsidy
The beneficiaries are surrounding West African nations and European refineries and nations.... Without a nation of 250million importing petrol, a number of European refineries and jobs will have to shut dow.
A sensible approach will still be to end whatever subsidy there is.... Subsequently tax imported petrol while granting tax holidays e.t.c to whatever local refinery we have..... Do that for 5 yrs and lets see if local refineries don't pop up

Similar approach can be made towards virtually every item on the CBNs forex list... Citizens shouldn't remain poor at the expense of a few rich

grandstar:


You want the country to go back to its vomit.

The reason why countries export is to have money to pay for its imports.

Imports aren't killing the country. It is the country's inability to export.

Ability to make things is engineering. The problem here is not engineering but economics.

First, when you ban this or ban that, it is not as much as you're encouraging local production. What you're really doing is disrupting the very efficient supply chain that that makes companies competitive and thrive.

For instance, you mention milk. You want Nestle to source milk locally. Are you for real?
If Nestle needs 10,000mt of milk locally, which Nigerian company can supply it? None. It will take decades and billions of dollars for the country to reach the level it would take to meet such demand.

Dum20:


I asked them about the management fee, they said the management fee is spread across all investors, so would be negligible. What they are saying is that not one person will pay the 1.5% but is spread across the investors

jedisco:


Those fees are very exorbitant in investment terms.
I'd hardly consider anything with a management fee above 0.3%.

grandstar:


You want the country to go back to its vomit.

The reason why countries export is to have money to pay for its imports.

Imports aren't killing the country. It is the country's inability to export.

Ability to make things is engineering. The problem here is not engineering but economics.

First, when you ban this or ban that, it is not as much as you're encouraging local production. What you're really doing is disrupting the very efficient supply chain that that makes companies competitive and thrive.

For instance, you mention milk. You want Nestle to source milk locally. Are you for real?
If Nestle needs 10,000mt of milk locally, which Nigerian company can supply it? None. It will take decades and billions of dollars for the country to reach the level it would take to meet such demand.

You want to tax imported petrol or refined product? The local refiners will gouge Nigerians like Dangote and Bua have done. That is what protectionism does. Nigerians got a very raw deal from the cement ban that just made 2 men billionaires. An import duty of 5% on refined oil is enough. More importantly, their primary market should be overseas and not local. The nation needs to export refined oil.

There are a million and one products to produce. To do best, countries should focus on where they have comparative advantage. That is what makes countries wealthy and not when you have to even manufacture toothpicks. That is why countries that open up their markets to foreign imports do best. It compels them to focus on areas they have comparative advantage. Also, imports fuel economic growth.

For instance, in the EU, there's zero percent import duty amongst members. Due to this, Germany can not wake up one morning and ban the importation of clothing from France with complaints it is affecting local producers. Germany manufacturers are forced to produce products it has comparative advantage in.

One would say Germany has opened up its $4.4 trillion economy to the EU, what does it gain in return? It gains unfettered access to the $18.25 trillion EU.

That is why the British economy is suffering today. Adjustment to Brexit has been painful. It does not have free access to the EU market again. Many companies started manufacturing in the UK to gain access to the EU economy. Now that it is gone, many want to leave and none want to come in. Also, EU companies exporting to the UK are facing difficulties.

jedisco:


I think you're conflating two issues here.. protectionism and free trade. Both are not mutually exclusive. The world is a competitive place and development does not occur in a vacum.

Japan, China, EU, Australia, UK, UAE, US, Malaysia/Singapore, India have had good economic development over the last 50 yrs. Pick any of those and I'd detail you several pages on deliberatw actions they took to protect their local market + labour and benefits it brought.
Even traditional allies like UK, AUS and US took years to recently eck out a trade deal as everyone was protecting their corner.

A country as big as Nigeria has to take deliberate steps to protect its market. Without that, our farmers have no chance of competing with those from Netherlands.

Free trade though with it's merits has many times been used to permit the exploitation of poorer nations by multinationals who are only interested in extracing raw materials at cheap prises or selling finished goods. Get their cocoa, sell them chocolate repatriate profits abroad and call them poor.

jedisco:


I think you're conflating two issues here.. protectionism and free trade. Both are not mutually exclusive. The world is a competitive place and development does not occur in a vacum.

Japan, China, EU, Australia, UK, UAE, US, Malaysia/Singapore, India have had good economic development over the last 50 yrs. Pick any of those and I'd detail you several pages on deliberatw actions they took to protect their local market + labour and benefits it brought.
Even traditional allies like UK, AUS and US took years to recently eck out a trade deal as everyone was protecting their corner.

A country as big as Nigeria has to take deliberate steps to protect its market. Without that, our farmers have no chance of competing with those from Netherlands.

Free trade though with it's merits has many times been used to permit the exploitation of poorer nations by multinationals who are only interested in extracing raw materials at cheap prises or selling finished goods. Get their cocoa, sell them chocolate repatriate profits abroad and call them poor.

IamR:

Pls have you heard anything?

grandstar:


In your second paragraph, you mentioned a list of countries that have used protectionism to protect their local markets.

For Japan and to a lesser extent China, their mercantilist past and present is well documented.

CodeTemplar:


Comparative advantage to us, is just a textbook idea that our internal problems(corruption) will never let us really enjoy. Until we match learning with character and attitude, we are just rationalizing textbook concepts as solutions to issues. The Europeans had functional societies that allows production take place first before extortion comes ours is the reverse.

Wotowotoman1:


You will never find 0.3% mgt fee in Nigeria. In fact, no actively managed mutual fund anywhere in the world will charge that low. How will they cover their overheads? Only index funds/ETFs can charge that low as these are not managed funds…

jedisco:


The issue here is that we have to start from somewhere.

I'm no fan of the monopoly OBJ gave Dangote but from a nationalistic perspective, its helped the nation gain sustainability in cement production else foreign companies would have still been telling us how corruption is the reason they can't produce in Nigeria but want to import and sell here.

The cocoa issue is one that has had more dispute of late. West Africa produces over 80% of cocoa. The multinationals are insistent on paying pennies to the farmers and have fought every move to pay a reasonable sum. They'd rather return and give 'aid'. African nations are not going get the production capacity of the West overnight. They have to build from somewhere.
It's largely how pure undiluted capitalism works and not just an issue here. Western nations have increasingly levied imports from certain nations hence incentivising/forcing producers to make goods locally and not import finished goods.

CodeTemplar:

The buyers of cocoa do not owe farmers anything. In open market that's how it is. Even in nigeria, the middlemen milk the farmers with manipulation of market forces. They can feign lack of demand to drive prices down once the buyers are few.

jedisco:


I'm struggling to understand the point you're driving.
The utopia where there is free movement of people, goods, capital and freedom to establish and provide services has so far not been institutionalised across economic blocks. If it has, as a Nigerian, I can freely go to work in the US for a month and then port to Switzerland e.t.c. until we get to that point, every nation has to fight its course.

Free-trade and protectionism are not mutually exclusive. Every successful nation bar none has found the right mix for them.

In the West, the cliche phrase is in 'the interests of the US(UK/EU..) and our allies.' No one asks what these interests are. The US has toppled many governments to protect their interests.

Lets take the UK as an example. Pre-brexit, they had the resident labour market test for every work visa. Which simply meant that before any non-EU person was given a work visa, an employer had to satisfy there was no Brit/EU national willing to do the job- protection of labour. The UK FA at a point felt the premier league didn't have enough homegrown talent to the detriment of the national team and hence introduced the homegrown rule to force clubs to use locals. Recently, the UK and AUS signed a trade deal and the focal point was what effect it'd have on local farmers and how to protect them. There are millions of subsidies the western nations pump into their farmers and more recently electric vehicles e.t.c all to give them a global advantage.
If a company has only been interested in selling processed milk to Nigerians for decades at the detriment of our forex and with no thought of supporting local content as they do in their home nation, then I see no reason why the government cannot take a strategic move against them. Another is international aviation.

The issue is that mostly African nations are sold the utopia of freetrade when their resources are being exploited and have struggled to identify the everyday instances where the West protects its market. Moreso, when we practice protectionism, we don't do it properly. E.g African viation which is hamstung by exorbitant fees.

Wotowotoman1:


US T bills are risk free. Stop yearning dust please

grandstar:


Your view of foreign investment and trade seems to be based on fantasy and not reality.

Why should Nestle produce the milk it uses locally? Nestle is not into milk production. That its not its core competence. No where in the world does Nestle produce milk. It buys it from farmers. What is hurting Nigeria's forex is that the country does not export enough. The multinational does not owe Nigeria a duty to produce milk.

You protectionists focus on the demand side of forex and not the supply side.

The movement of labor within EU was quite free and not as stringent as you put it, especially when the UK was still part of the EU. Yes, some rich EU economies did delay free movement of labor from new arrivals to the bloc but was eventual open. The UK opened its doors to the new arrivals from Central Europe into the EU in 2005 or so, which was the year they joined. They quickly swamped the local job market and public service. Romania and Bulgaria joined the EU in 2007 but the UK waited till 2014 or so for the new arrivals to come in legally and work.

They quickly swamped the labour market as well. I was in England in 2014 and in the 2 hotels I stayed in London, they had cleaning staff who were Romanians.

Protectionism has failed Nigeria. It is so blatantly clear that I wonder why you keep trying to preach the gospel of it. The government was forced to lift up the restrictions on the 43 products because it was doing more harm than good.

As I have said, protectionism, especially the type you fancy simply destroys the critical and efficient supply chain. When you destroy the supply chain, you might as well just kill the business.

Your last paragraph is based on a myth.

What made South Korea and Japan prosperous today? By taking advantage of the open US market. Even China did the same. What is stopping Africa from doing likewise? Africa has duty free access to most of its exports to the US and UK. It has yet to exploit them. Only Lesotho and Ethiopia are having headway.

Olaide1295:

That it is low risk does not mean it is risk free.
Do you consider Naira T-bills risk free?
Both countries will rather just print than default.

grandstar:


Your view of foreign investment and trade seems to be based on fantasy and not reality.

Why should Nestle produce the milk it uses locally? Nestle is not into milk production. That its not its core competence. No where in the world does Nestle produce milk. It buys it from farmers. What is hurting Nigeria's forex is that the country does not export enough. The multinational does not owe Nigeria a duty to produce milk.

You protectionists focus on the demand side of forex and not the supply side.

debbydee:
Good evening

Please when is the next auction date for TBills.

Also is there any bank that is recommended.

Thanks