₦airaland Forum

ositadima1:
When investing, they provide 22% of your initial investment (X) upfront. Effectively, you invest (X - 22% of X).

At the end, you receive back your initial X. This means you've earned 22% of X on a reduced investment base.


The key calculation is: 22% ÷ (1 - 22%) = 28%.


This formula is generalizable - you can replace 22% with any other percentage, and the same ormula applies.

Thank you!

1Bishop:
Yes. Check the attachment below

That's not for us

Itsrm:
Swears. Had to come out of retirement and pulled funds to invest. I don't see the naira depreciating to N2,200 a dollar within the next one year.

Prayer is for this bonanza to continue well into the coming year.

It appears so but it's definitely not a bonanza. I would prefer 11% on my one year Tbs in 2022 economy than 23% in 2024. I just wonder if people will still invest in treasury bills if it drop to 11% come 2025, because it will be a total lost of investment with the high inflation and high dollar rate.

ositadima1:
When investing, they provide 22% of your initial investment (X) upfront. Effectively, you invest (X - 22% of X).

At the end, you receive back your initial X. This means you've earned 22% of X on a reduced investment base.


The key calculation is: 22% ÷ (1 - 22%) = 28%.


This formula is generalizable - you can replace 22% with any other percentage, and the same ormula applies.

Kindly explain in a simpler form how dey take get 30% true yield on the 23% 364 days treasury bills. Thanks

Quiteparrot:
Kindly explain in a simpler form how dey take get 30% true yield on the 23% 364 days treasury bills. Thanks

Let’s assume you have ₦1 million to invest. Your bank gives you ₦230,000 upfront, which is 23% of ₦1 million, a few days after you invest in treasury bills. This means you effectively invested ₦770,000, calculated as ₦1 million minus ₦230,000. It is the ₦770,000 that remains invested for one year, not the full ₦1 million.

At the end of the year, upon liquidation, you receive ₦1 million, which is the initial ₦770,000 plus extra ₦230,000. Therefore, your true yield is ₦230,000 divided by the ₦770,000 you effectively invested, giving you an effective return of 29.87%.

Do you now understand that you effectively invested ₦770,000, not ₦1 million, because ₦230,000 was paid back to you at the start of the investment, exactly one year before maturity?


You are being rewarded for giving them access to your money for the year. What matters is the portion of your money that remains with them throughout the period, as that is what generates the interest. The portion that is given and then returned to you at the start does not contribute to the interest, though it is necessary to complete the transaction from your end.

Foodempire:
It appears so but it's definitely not a bonanza. I would prefer 11% on my one year Tbs in 2022 economy than 23% in 2024. I just wonder if people will still invest in treasury bills if it drop to 11% come 2025, because it will be a total lost of investment with the high inflation and high dollar rate.

It is actually. And it depends on how long the bonanza continues. Run the math over a 5 year period and the naira will have to depreciate to 7k+ to a dollar for you not to beat inflation.

And even if you look at it in the short term, what are the options? There are no guarantees in the stock market, crypto is worse and business has its ups and downs. Maybe you can buy USD but anything can happen.

Itsrm:
You don't need 50m+ to get yield of 29%

Where can one obtain these range of interest rate from the secondary market please?

manlikegb:
Where can one obtain these range of interest rate from the secondary market please?

Juicy offers in the secondary market don't stay open for long before they are snipped.

You'll need to be very lucky but you can try with FBN or Stanbic. Ask what they have available in the secondary market.

Itsrm:
Juicy offers in the secondary market don't stay open for long before they are snipped.

You'll need to be very lucky but you can try with FBN or Stanbic. Ask what they have available in the secondary market.

I got 21% from First bank Secondary market on Monday.

Sorted

.

Naira investment,,,, seems it's now the best time to go fully in it.

DAramis:
Abeg Financial gurus and fellow investors, who has direct phone contact or email of responsive staff in Stanbic IBTC asset management company?

I need to reach across them over an investment enquiry. Sent email, but the customer care want me to go to bank when there is none close by.
CC Nakedman; itsrm; ositadima1 and everyone.

No idea sir

Cc Emmasoft

Itsrm:
No idea sir

Cc Emmasoft

Call the customer care on 0 2 0 1 2 8 0 5 5 9 5 They are responsive.

Nakedman:
Update.!

Wednesday 4th December. Try to put in your bid today or latest tomorrow morning.

Good morning people

Just a quick question pls -

Do they remove 10% withholding tax from all interest/coupon obtained from FGN treasury bill now ?? even if you stay abroad
It is being a while I invested in TB
Thanks

oluayebenz:
Naira investment,,,, seems it's now the best time to go fully in it.

That's if there is no further devaluation.

oyewole123:
Good morning people

Just a quick question pls -

Do they remove 10% withholding tax from all interest/coupon obtained from FGN treasury bill now ?? even if you stay abroad
It is being a while I invested in TB
Thanks

Yes, the tax holidays on interest on TBills has ended. Interest from TBills now attract WHT.

Good afternoon everyone, please has anyone successfully liquidated Tbills with standard chartered bank via email or app?



freeman67 🙏

Acidosis:
Good afternoon everyone, please has anyone successfully liquidated Tbills with standard chartered bank via email or app?



freeman67 🙏

Nooo. I haven't. So far, I have held any one I do with them till maturity.

freeman67:
Nooo. I haven't. So far, I have held any one I do with them till maturity.

Alright, boss. Thank you

I have sent at least 3 emails in the last 7 days, but no response.

Acidosis:
Alright, boss. Thank you

I have sent at least 3 emails in the last 7 days, but no response.

Their platform seems to be automated ooo. It's like you will have to put in the market for sell yourself and the way things are right now, you could generate loss from there...

freeman67:
Their platform seems to be automated ooo. It's like you will have to put in the market for sell yourself and the way things are right now, you could generate loss from there...

I've just read a clause somewhere on the app "contact your relationship manager." Problem now is that I don't know how or where to reach this individual. I may have to take the difficult path of visiting one of the branches. I'm ready to embrace the loss, although I don't think it would be too significant. It's a 63 day tenor at 20.5%.

Hi good people…quick advice pls..either getting 3plots of fanced land for 12m in a developing area or buying 23% fgn treasury bill which one is the best ?…calculating worse case scenario next year T bills will give at least 15% next year if the current 23% stops. Planning to hold capital for 5years and maximize the ROl

Bomaway007:
Hi good people…quick advice pls..either getting 3plots of fanced land for 12m in a developing area or buying 23% fgn treasury bill which one is the best ?…calculating worse case scenario next year T bills will give at least 15% next year if the current 23% stops. Planning to hold capital for 5years and maximize the ROl

,

Hello nairalanders,
Pls I want to invest in tbills starting this month for the 91 days and roll over like 3 times to maximise my capital for the year 2025.

What are your suggestions?
Any particular bank that give better rates?

What is likely to be the rate for 91 days?
With 50m capital.
Pls advice

Thanks everyone

BizErikah:
Hello nairalanders,
Pls I want to invest in tbills starting this month for the 91 days and roll over like 3 times to maximise my capital for the year 2025.

What are your suggestions?
Any particular bank that give better rates?

What is likely to be the rate for 91 days?
With 50m capital.
Pls advice

Thanks everyone

Why not just do 360 days at once instead of roll over 3 times a year

Shalom428:
Wednesday 4th December. Try to put in your bid today or latest tomorrow morning.

Pls does anyone have the rates for today's primary market auction?

Adamma91:
Why not just do 360 days at once instead of roll over 3 times a year

https://www.youtube.com/watch?v=Vp-Ycgkyv9U?feature=shared

Today's rate

Shalom428:
Today's rate

Tnks a lot