₦airaland Forum

crownprince2017:
That ellahlakes management would have done better to break down the conversion rate of shareholders loan of 6b in the report n not assume people should know it can't be at ridiculous price.

N2.80 I think. Was stated at the EGM..

pluto09:
Any common sense pick at current price?

Oga Pluto, a whole big you also looking for common sense picks
I don't know you're also in a common sense league.
If he should tell you OANDO, you go gree buy? 😁

* Abeg don't mind me o
Just pulling your legs
AJ8's common sense na confirmed sure odds 👌

jonnysessy:
Well Prestige had turn you to looooong time investor just like Transcorp Power did to you. I hope you are averaging down on Transcorp Power. The price have come down.

You and who wan average down for TP ... Until it touches 200 I no dey average down kankan (I no dey try "catch falling knife" like Mankindman would always say). Na Cadbury and NAHCO I dey do small small topups here and there

Yoursfaithful:
https://dailypost.ng/2025/09/03/bpe-to-list-two-discos-genco-in-ngx-privatise-91-fg-assets/

Transmission needs to be flexible for them to list on NGX and maximize their market beyond their base operation especially for the Gencos..
Though it'd good the TCN is now being unbundled to take care of these.

mikeapollo:
CPs are discount instrument, hence for a 20% discount rate, you remove the discount value (e.g. N200) from the par or face value (e.g. N1,000) and pay the net amount (N800) to the company borrowing. At the end of the tenure, the company pays you the gross face value (N1,000) less WHT on the discount. If the tenure is less than 365 days (1 year), then you have to pro-rate accordingly.

Thank you.

mikeapollo:
CPs are discount instrument, hence for a 20% discount rate, you remove the discount value (e.g. N200) from the par or face value (e.g. N1,000) and pay the net amount (N800) to the company borrowing. At the end of the tenure, the company pays you the gross face value (N1,000) less WHT on the discount. If the tenure is less than 365 days (1 year), then you have to pro-rate accordingly.

Thank you

awesomeJ:
-> CP discounts are prorated, so yes for 270 days, you'll get the 15.64% discount, your actual yield would be around 18.5%
-> Yes, CPs are subject to 10% WHT. Then you also pay fees to the bank or finance house through which you buy. Fees should be under 1%, less than 0.5% if you find efficient folks like StanbicIBTC

-> MMF management fees is a portion of the earnings ALONE! Except your MMF is invested in Germany or some other negative interest rate markets, MMF will always make returns.

Thank you

awesomeJ:
-> CP discounts are prorated, so yes for 270 days, you'll get the 15.64% discount, your actual yield would be around 18.5%
-> Yes, CPs are subject to 10% WHT. Then you also pay fees to the bank or finance house through which you buy. Fees should be under 1%, less than 0.5% if you find efficient folks like StanbicIBTC

-> MMF management fees is a portion of the earnings ALONE! Except your MMF is invested in Germany or some other negative interest rate markets, MMF will always make returns.

Explain this MMF -ve interest rate in foreign countries Biko.
like one is charged on the capital for investing or.....

chimex38:
Explain this MMF -ve interest rate in foreign countries Biko.
like one is charged on the capital for investing or.....

I didn't say foreign countries.

I said negative interest rate markets.

Just like the money rate in Nigeria is currently +27.5%

There were countries whose interest rates were below 0, so playing in the debt market in such countries mean you effectively pay interest for lending out your money. And the borrower earns interest for borrowing.


Japan was the most recent to exit such rates last year. (Japan is the one I can recall I should say)

You can look it up.

Joyful365:
Please house clarify these grey areas on commercial papers and money market funds if you have the experience.

For commercial papers, is the interest rate quoted prorated? For example, if 21.15% is quoted for 270 days tenure, is the 21.15% indicated for one year interest rate, meaning to prorate it to 270 days you do 21.15%/365 * 270 = 15.64%? Meaning it is 15.64% that will be paid for the commercial paper of 270 days tenure? Or the 21.15% will be paid for the 270 days CP tenure? Also, are CPs subject to witholding tax? What other fees are charged on CPs?

On money market funds, what are the fees charged and are they charged on the interest earned or charged on the total sum under management? For example, if you put ₦10 million in a money market fund and it earns 10% (1 million) in one year, will the fees be charged on the 1 million earned or the entire 11 million? If on the entire 11 million, what happens when the fund managers don't make any returns? Will they still continue to remove their management fees from your capital?

1. Commercial Papers (CPs): Is the quoted interest prorated?

Yes , in virtually all markets (Nigeria inclusive), the quoted yield (e.g. 21.15%) is an annualized rate, not the exact return for that tenor.

To get the actual interest you earn for a shorter tenor (say 270 days), you have to prorate.

Exception: Some CPs are issued on a discount basis (i.e., sold below face value and redeemed at par). In that case, the quoted discount rate already embeds the time tenor. But if you see a "quoted yield" as in your example, it’s annualized and must be prorated.

Are CPs subject to withholding tax (WHT)?

Yes. Interest income on CPs attracts 10% withholding tax in Nigeria (deducted at source before payment).

This is the final tax (you don’t pay additional tax on that income again).

Other fees on CPs?
Typically no additional fees charged to investors. The issuing company may pay arrangers, trustees, issuing houses, etc., but those fees are on the issuer’s side, not the subscriber’s.

As an investor, what you see (net of WHT) is what you get.

2. Money Market Funds (MMFs)

How are fees charged?

MMF managers charge a management fee (often 1% – 2% per annum) and sometimes a trustee/custodian fee (tiny, usually <0.3%).

These fees are charged on the fund’s total assets under management (AUM), not just on the interest earned.

The fees are deducted from the fund’s gross returns before you see your NAV/unit price increase.

So in your example:
Invest ₦10 million.Suppose the gross return on investments = 10% (₦1m).

If management fee = 1.5% of AUM, that’s ₦150,000 deducted.
Net distributable return to you = ₦850,000 (an effective yield of 8.5%).

What happens if the fund makes no return (or negative return)?

Yes, fees still apply. Managers deduct them from AUM regardless. However, in practice, most MMFs are invested in safe, short-term instruments (T-bills, CPs, repos, bank placements), so negative returns are rare. But your capital can erode slowly if returns are very low and fees still get deducted.

Remember:
Commercial Papers: Quoted yield is annualized, prorate to tenor. Subject to 10% WHT. No investor-side fees.

Money Market Funds: Fees are on AUM, deducted before declaring returns. Even if returns are low, fees are still taken.

yMcy56:
Oga Pluto, a whole big you also looking for common sense picks
I don't know you're also in a common sense league.
If he should tell you OANDO, you go gree buy? 😁

* Abeg don't mind me o
Just pulling your legs
AJ8's common sense na confirmed sure odds 👌

He is doing a great job.
Some companies would be doing great with their numbers and it is only when someone mentioned it here that one would go back to check and you start wondering how and why have I not seen this before.
I have my set criteria for buying, even if he mentions OandO I will still have to check the numbers and see if they meet up.

awesomeJ:
I didn't say foreign countries.

I said negative interest rate markets.

Just like the money rate in Nigeria is currently +27.5%

There were countries whose interest rates were below 0, so playing in the debt market in such countries mean you effectively pay interest for lending out your money. And the borrower earns interest for borrowing.


Japan was the most recent to exit such rates last year. (Japan is the one I can recall I should say)

You can look it up.

@bolded OK. understood. I was just making reference to Germany you mentioned.


Yes.. You are right, I know of Japans -ve interest rate then.

I was only curious on investing avenues with such rates..
How can I PAY interest for LENDING money and the BORROWER EARNS interest on it?
and PEOPLE actually key-in?

What benefit outways the finance on the lenders end?

This one dey cause HEADACHE

mikeapollo:
Access Bank, but you have to be patient for mid-long term.
With GT and ZB selling above N60, Access will definitely hit N40-45.

DYOR

I don't think I have the patient to play access bank. I will only consider it if the price dips to N22

ProphetUtuocha:
1. Commercial Papers (CPs): Is the quoted interest prorated?

Yes , in virtually all markets (Nigeria inclusive), the quoted yield (e.g. 21.15%) is an annualized rate, not the exact return for that tenor.

To get the actual interest you earn for a shorter tenor (say 270 days), you have to prorate.

Exception: Some CPs are issued on a discount basis (i.e., sold below face value and redeemed at par). In that case, the quoted discount rate already embeds the time tenor. But if you see a "quoted yield" as in your example, it’s annualized and must be prorated.

Are CPs subject to withholding tax (WHT)?

Yes. Interest income on CPs attracts 10% withholding tax in Nigeria (deducted at source before payment).

This is the final tax (you don’t pay additional tax on that income again).

Other fees on CPs?
Typically no additional fees charged to investors. The issuing company may pay arrangers, trustees, issuing houses, etc., but those fees are on the issuer’s side, not the subscriber’s.

As an investor, what you see (net of WHT) is what you get.

2. Money Market Funds (MMFs)

How are fees charged?

MMF managers charge a management fee (often 1% – 2% per annum) and sometimes a trustee/custodian fee (tiny, usually <0.3%).

These fees are charged on the fund’s total assets under management (AUM), not just on the interest earned.

The fees are deducted from the fund’s gross returns before you see your NAV/unit price increase.

So in your example:
Invest ₦10 million.Suppose the gross return on investments = 10% (₦1m).

If management fee = 1.5% of AUM, that’s ₦150,000 deducted.
Net distributable return to you = ₦850,000 (an effective yield of 8.5%).

What happens if the fund makes no return (or negative return)?

Yes, fees still apply. Managers deduct them from AUM regardless. However, in practice, most MMFs are invested in safe, short-term instruments (T-bills, CPs, repos, bank placements), so negative returns are rare. But your capital can erode slowly if returns are very low and fees still get deducted.

Remember:
Commercial Papers: Quoted yield is annualized, prorate to tenor. Subject to 10% WHT. No investor-side fees.

Money Market Funds: Fees are on AUM, deducted before declaring returns. Even if returns are low, fees are still taken.

''Prophet'', we are waiting for more revelations ooo ....... about what you know already!

pluto09:
I don't think I have the patient to play access bank. I will only consider it if the price dips to N22

Na wa ooo.
I dey your side sha

ProphetUtuocha:
1. Commercial Papers (CPs): Is the quoted interest prorated?

Yes , in virtually all markets (Nigeria inclusive), the quoted yield (e.g. 21.15%) is an annualized rate, not the exact return for that tenor.

To get the actual interest you earn for a shorter tenor (say 270 days), you have to prorate.

Exception: Some CPs are issued on a discount basis (i.e., sold below face value and redeemed at par). In that case, the quoted discount rate already embeds the time tenor. But if you see a "quoted yield" as in your example, it’s annualized and must be prorated.

Are CPs subject to withholding tax (WHT)?

Yes. Interest income on CPs attracts 10% withholding tax in Nigeria (deducted at source before payment).

This is the final tax (you don’t pay additional tax on that income again).

Other fees on CPs?
Typically no additional fees charged to investors. The issuing company may pay arrangers, trustees, issuing houses, etc., but those fees are on the issuer’s side, not the subscriber’s.

As an investor, what you see (net of WHT) is what you get.

2. Money Market Funds (MMFs)

How are fees charged?

MMF managers charge a management fee (often 1% – 2% per annum) and sometimes a trustee/custodian fee (tiny, usually <0.3%).

These fees are charged on the fund’s total assets under management (AUM), not just on the interest earned.

The fees are deducted from the fund’s gross returns before you see your NAV/unit price increase.

So in your example:
Invest ₦10 million.Suppose the gross return on investments = 10% (₦1m).

If management fee = 1.5% of AUM, that’s ₦150,000 deducted.
Net distributable return to you = ₦850,000 (an effective yield of 8.5%).

What happens if the fund makes no return (or negative return)?

Yes, fees still apply. Managers deduct them from AUM regardless. However, in practice, most MMFs are invested in safe, short-term instruments (T-bills, CPs, repos, bank placements), so negative returns are rare. But your capital can erode slowly if returns are very low and fees still get deducted.

Remember:
Commercial Papers: Quoted yield is annualized, prorate to tenor. Subject to 10% WHT. No investor-side fees.

Money Market Funds: Fees are on AUM, deducted before declaring returns. Even if returns are low, fees are still taken.

Thank you for the information.

Do you know which of the banks one can easily walk into or use their online platform to get commercial papers and the steps to follow? My cousin's account officer is frustrating her.

pluto09:
I don't think I have the patient to play access bank. I will only consider it if the price dips to N22

Wait for 20+

Joyful365:
Thank you for the information.

Do you know which of the banks one can easily walk into or use their online platform to get commercial papers and the steps to follow? My cousin's account officer is frustrating her.

You can get CPs through any of the banks or easily through your broker

chimex38:
@bolded OK. understood. I was just making reference to Germany you mentioned.


Yes.. You are right, I know of Japans -ve interest rate then.

I was only curious on investing avenues with such rates..
How can I PAY interest for LENDING money and the BORROWER EARNS interest on it?
and PEOPLE actually key-in?

What benefit outways the finance on the lenders end?

This one dey cause HEADACHE

People have their motivations 😁😁

If you're not comfortable keeping your money as cash under your mattress, it may no longer be a matter of choice then, rates are negative, but there's no alternative.

Agbalowomeri:
Wait for 20+

lol, nothing is impossible anyway.
I think the half year results and the amount of dividend declared will play a big role in how the share price moves in the short to medium term.

Agbalowomeri:
Wait for 20+

Isn't 26 20+??
You're confusing me now.

Maybe stick with sub so I can understand 😁

awesomeJ:
Isn't 26 20+??
You're confusing me now.

Maybe stick with sub so I can understand 😁

You people want to drag Access down further? There is God oo

Agbalowomeri:
Wait for 20+

Educo right now.

Agba how far, I hope oando no be Janet because one prophet they seduce me to buy.

I see small awoof for presco today, I just top am up...

An equity raise is not necessary for insurance companies
When the CBN issued a new minimum capital requirement, the instructions were simple. Minimum paid-up share capital must be increased, and retained earnings are not allowed to translate into share capital. Hence, publicly listed banks had to raise capital from the equity market.

However, for insurance companies, it is a different ballgame. While the injection of fresh funds through private placements, rights issues, or offer for subscription is welcome, it is not the only means. According to draft guidelines seen by BusinessDay, NAICOM notes that for existing insurers, the minimum capital requirement can be satisfied with net assets minus own shares held by the company (treasury shares).
The regulator, however, streamlines what portion of the total assets is “admissible” in the estimation of net assets. These admissible assets are

Cash and bank balances
Tenored deposits with financial institutions
Government Bonds
Treasury Bills
Corporate Bonds (Quoted)
Commercial Papers
Quoted equities
Loans to policyholders
Loans to agents’ reinsurance assets
Premium receivables (certified as received by external auditors)
Investment properties (not more than 20 percent of MCR)
Statutory deposit
Since NIIRA was signed into law, no publicly listed insurer has announced plans for an equity raise to meet the MCR. A signal that many of these insurers may not go that route. Also, unlike the banks, all indications point to the fact that retained earnings can be translated into minimum capital requirements.

For new insurers, the minimum capital requirement will be restricted to highly liquid and secure instruments. These include cash and bank balances, term deposits with financial institutions, government bonds, and treasury bills.

He said 2b+ was the loan then which will be converted at 2.8+ based on the time it was collected, he then said they are still collecting more loans to be converted.

Others can't be converted at 2.8+ it will be converted based on the sp as at when the loan was given.

SonofElElyonRet:
N2.80 I think. Was stated at the EGM..

pluto09:
I don't think I have the patient to play access bank. I will only consider it if the price dips to N22

Na wa o...some of us bought access close to 30 fa

If they should attempt to convert everything at 2.8+,that will be a serious fraud. We wait as things unfolds.

Hedgefunds:
* Wonder why these guys are hoarding information.... No one is hoarding any Info.
* How much per share did HUAXIN bought from HOLCIM? N93

In a country whr they have not destroyed the judiciary via corruption. Like the countries of the 2 parties involved in this deal.what we will be hearing is jail for contempt of court order and not how much was the deal.
This country being a banana Republic any nonsense can happen. The court case on this matter is still on October and they disobey court order and went on with thr thing.Can the chinko try that in thr country. This government is just too corrupt

crownprince2017:
He said 2b+ was the loan then which will be converted at 2.8+ based on the time it was collected, he then said they are still collecting more loans to be converted.

Others can't be converted at 2.8+ it will be converted based on the sp as at when the loan was given.

Nope. All loans will be converted at N2.80 up till close of work of EGM date. That's what Chuka said at the EGM. Deadline was EGM date. Go watch again