₦airaland Forum

digitalinvestor:
This is not to further confuse you!
Another way of looking at true yield from a layman's perspective.

The true yield of 24% is derived from the actual principal invested of #40,500,000 * 24% = #9,7m excluding fees and taxes.

NB: For true yield, the figure we are looking at is your #40.5m and not #50m.

However, the detailed and technical explanation of how true yield is derived has been broken down by @NL1960.

Thanks for clarification .. pls what is the difference between the secondary and primary market also in terms of rates .

USA2019:
That's the approximate primary market rate, according to the last auction results that you uploaded. Most banks' secondary market rates will be lower than that. I think Stanbic IBTC has one of the best secondary market rates available. GTBank is dwindling in their services, I'll advise you to avoid them if possible.

Thanks for the clarification…

Pls In percentage terms, what kind of spread usually exists between buying T-bills at primary rate versus secondary market rates ?

It depends on the bank and available rates. I've always held my investment to full term.

Ivan18888888888:
Thanks for the clarification…

Pls In percentage terms, what kind of spread usually exists between buying T-bills at primary rate versus secondary market rates ?

How do u buy directly instead of buying thru banks

PharoahIII:
How do u buy directly instead of buying thru banks

You need 50,000,000 to buy directly

Yh I know but how do I buy, thru a website or go into a bank branch?

PharoahIII:
Yh I know but how do I buy, thru a website or go into a bank branch?

Registered with any investment company, open and account and tell them you want to purchase treasury bills

USA2019:
It depends on the bank and available rates. I've always held my investment to full term.

Okay 👍, but is there any significant difference . Can you just give me an idea what both rates look like for any bank you’ve good idea of

Primary Market is where new securities are issued and sold for the first time (e.g., government bonds, treasury bills) Minimum Investment is #50M, and you can submit a bid Bi-weekly directly through your banks or investment house.

Secondary Market on the other hand is where previously issued securities are traded among investors and you can invest as low as #100k or even lower depends on the banks or asset management companies. Securities are traded everyday of the week unlike primary market where auction take places bi-weekly.

As per rate:

If you buy successfully from the Primary market you could get a rate say 19% for a year tenor which could be 365 or 364

For secondary market the rate most likely is going to be lower e.g. 18.5% or 18% compare to what you get in the primary market and the tenor of 1 year could be from 363 or lower i.e. if you're buying next day after a primary auction.

Ivan18888888888:
Thanks for clarification .. pls what is the difference between the secondary and primary market also in terms of rates .

Does anyone know if Stanbic ibtc accepts less than 50m for primary market?

NL1960:
Lesson 1

I = PTR/(Year * 100)

I = Interest
P = Principal
T = Tenor
R = Interest Rate
Year = Days in Year = 365 (366 if a leap year)


In your post we have:

P = 50m
T = One Year(365)
R = 19%.

I = (50m * 365 * 19 ) / (365 * 100)

I = 346,750,000,000/36,500

I = 9,500,000.

So if you invest N50m at 19% for one year, you immediately get an interest of 9,500,000. This is called upfront interest.

So you give the government, N50m and they give you back 9,500,000 immediately meaning the bank will debit you for N50m and credit you with 9,500,000.

So if you check your account, you will see 9,500,000 there.

This effectively means that you gave the government N40,500,000(N50m - N9,500,500)

Now at what rate did you actually give this N40,500,000 to government?. This is what is called the True Yield

Lesson 2

We need to now find the rate at which you gave the government N40,500,000.

I = PTR/(Year * 100)

(I * Year * 100) = PTR

R = ( I * Year * 100) / PT

R = (9,500,000 * 365 * 100) / (40,500,000 * 365)

R = 346,750,000,000 / 14,782,500,000

R = 23.45679012345679

If you aproximate:

R = 23.46

R = 23.5

R = 24.

QED(Quod Erat Demonstrandum)

Nice explanation bro. But what is the function of the 24%, I know it’s the rate at which you gave the money to government but it looks like it’s of no use to you the investor, am I wrong?

kinnad:
Nice explanation bro. But what is the function of the 24%, I know it’s the rate at which you gave the money to government but it looks like it’s of no use to you the investor, am I wrong?

The government calls it Yield. To you, the government gave you 19% because the interest given back to you was actually calculated on the 19% but in effect, the effective rate is 24% because the government 'discounted' the amount you gave them by giving you back your interest immediately. In Fixed Deposit, you do not have this. If you place 50m in a bank for one year at 19%, you will get 59.5m at the end of one year. No interest in given to you immediately. That N9.5m given to you immediately in TB, you can still go and invest it in MMF funds to get further interest of about 150k every month. If you decide to do the next TB action or secondary market TB, you also get another immediate interest from the N9.5m

Contrast this with Bonds that does not give back immediate interest but gives interest every 6months. So if it was Bonds, you will get about N4.7m after six months. If the TB and Bonds were for one year, you get the same Principal amount of N50m after one year.

There is a primary auction this week. Key in today if you want to partake in it.

Shalom428:
There is a primary auction this week. Key in today if you want to partake in it.

Really, thought it was bi weekly?

kristien4:
Really, thought it was bi weekly?

There are usually three primary auctions in the month of March, June , September and December. The first, second and last week of these months mentioned.

The remaining months of year have just two primary auctions.

So, there is a primary auction tomorrow. Key before the end of business today or first thing tomorrow morning

Shalom

kristien4:
Does anyone know if Stanbic ibtc accepts less than 50m for primary market?

Yes, they do. U can also use their new tbills app or go to any branch.

vanvickie:
Yes, they do. U can also use their new tbills app or go to any branch.

what is the name of stanbic TB app plsease

vanvickie:
Yes, they do. U can also use their new tbills app or go to any branch.

According to their app, next auction is next week.

Shalom428:
There are usually three primary auctions in the month of March, June , September and December. The first, second and last week of these months mentioned.

The remaining months of year have just two primary auctions.

So, there is a primary auction tomorrow. Key before the end of business today or first thing tomorrow morning

Shalom

I wonder why customer care is saying there's no auction till next week. Pls what's the exact date of the auction?

kristien4:
According to their app, next auction is next week.

can't find it on stanbic app

kristien4:
I wonder why customer care is saying there's no auction till next week. Pls what's the exact date of the auction?

Today, June 11 , 2025. The next one after today's is June 25 , 2025.

alexudeze:
“WHY DO MOST NIGERIANS LOSE MONEY AFTER BUYING A LAND”

The truth is there are lots of secured lands all over Nigeria but most people are greedy and don’t want to pay lots of money and that’s why they end up losing their money or the land they bought

Most Nigerians don’t lose money buying land ……..They lose it trying to “secure” land from OMONILE, without any receipt because the land seems cheap

They skip documentations, trust thier uncle’s friends cousin — and boom, they own the same plot as 3 people 😂😂. That’s the worst thing anyone can do while buying a land

BUYING LAND ISN’T THE PROBLEM

BUYING RIGHT IS .

HOW TO AVOID LOSING MONEY WHEN YOU BUY A LAND ?

1. Don’t trust word of mouth , trust documents

2.verify the land title at the land registry

3. Always use a lawyer

4. Visit the land you want to buy physically

5. Work with trusted real estates firms that are registered— not roadside agents

Land is the one of the best assets to build wealth— but only if you buy it the right way

“Land can either build your wealth or burn your savings. If you are planning to invest this year, message me now — let’s help you do it the right way”

This is interesting even those real estate agent after paying allocation wahala, when u now want to build on it another wahala

Odunharry:
Principal of 3.7 should give 3,700,000*364*18.5/36500=682,624.66.

The interest will also depends on the rate it was booked if it's same rate, you can use above calculation and replace 3.7m with 682k. Also bear in mind there's 10%WHT on the interest amount.
But wait o, which company gave you
18.5% is it primary market?

Good afternoon, pls I invested in T bill
I was paid upfront interest ,when I received the certificate it was stated that maturity value subject to 10percent withholding tax , does it mean they will deduct the 10percent from the face value at maturity.
Or I will received all my money at maturity

DFPS:
can't find it on stanbic app

check for the link, someone dropped it about 2 pages back.

heavenisreal18:
Good afternoon, pls I invested in T bill
I was paid upfront interest ,when I received the certificate it was stated that maturity value subject to 10percent withholding tax , does it mean they will deduct the 10percent from the face value at maturity.
Or I will received all my money at maturity

They ought to have deducted the 10% WHT already from the interest you were paid

Chikebrain:
They ought to have deducted the 10% WHT already from the interest you were paid

I wonder too o,the deduction should have been taken from interest ,they should not spoil the face value.

heavenisreal18:
Good afternoon, pls I invested in T bill
I was paid upfront interest ,when I received the certificate it was stated that maturity value subject to 10percent withholding tax , does it mean they will deduct the 10percent from the face value at maturity.
Or I will received all my money at maturity

They are suppose to deduct from the interest amount.
Then at maturity, your face value will be your principal invested. Confirm your face value is the amount invested and they have not deducted WHT on before crediting your upfront interest. You can determine this by PRT/100=Interest. If amount is 10% less of what you received, no need to worry. Wht has been deducted already. At maturity you get back principal. You won't be charged twice

United Capital is it belong to UBA bank .....?

And what is the rate.....?

United Capital is it belong to UBA bank .....?

And what is the rate.....?

yekini007:
United Capital is it belong to UBA bank .....?

And what is the rate.....?

No, United Capital Group Plc (UCAP) does not belong to United Bank for Africa Plc (UBA). While UCAP was formerly known as UBA Capital and a subsidiary of UBA, it has since become an independent entity. UCAP was spun off from UBA in 2002 and subsequently changed its name to United Capital Plc.

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