₦airaland Forum

awesomeJ:
There are credit bureaus like CRC.
Banks may also have their internal algorithms.

Chief, Holla if you need more or attractive FD rate. Renmoney

Odunharry:
Chief, Holla if you need more or attractive FD rate. Renmoney

Sure thing.
Will do in the morning.

A QUICK one for the NEWBIES.

STOCK MARKET is an OCEAN either you keep FLOATING or you get DROWN,

SOME of us have been in this GAME for over 2 DECADES but it took us a WHOOPING 10years to BREAK-EVEN then went back to the DRAWING BOARD to RE-STRATEGIZE the way FORWARD

KNOW this and know PEACE ✌️

BARGAIN HUNTERS TAKE NOTE!

*ThE OcToPuS* 🐙🦑

;OUR TOP 5 PICK FOR 2025

1) CADBURY

2) NASCON

3) ACCESSCORP

4) JAPAULGOLD..... Invest only speculative fund

5) DANGOTE SUGAR


BARGAIN HUNTERS TAKE NOTE!

You are very correct, loan in Nigeria is misery. Sometimes they will look for ways to entice you and you get to realize that the rate is higher than what they quoted

awesomeJ:
We've actually talked about this loan vs tax situation in the past.

The maths is straight forward: the cost of the loan needs to be lower than the potential tax rate for it to make sense. The lower cost is the attraction.


In advanced economies, loans are priced below 5% while taxes are often above 20% so there's a 15+% positive spread in favour of debt.


In Nigeria, prime lending is above 30%, when you add 1% management fees and other sundry fees, it could be nearing 32%

I have personally paid 156% annualized this year with Oxygen X, and I still even pay over 80% with Renmoney (long story)

So prime lending at 32% , average effective tax rate at about 22% implies a 10% negative spread against loans. So taking loans is worse here!

That's just the simple maths.


Except they've changed the meaning of "greater than", "less than" 😁😁😁

awesomeJ:
We've actually talked about this loan vs tax situation in the past.

The maths is straight forward: the cost of the loan needs to be lower than the potential tax rate for it to make sense. The lower cost is the attraction.


In advanced economies, loans are priced below 5% while taxes are often above 20% so there's a 15+% positive spread in favour of debt.


In Nigeria, prime lending is above 30%, when you add 1% management fees and other sundry fees, it could be nearing 32%

I have personally paid 156% annualized this year with Oxygen X, and I still even pay over 80% with Renmoney (long story)

So prime lending at 32% , average effective tax rate at about 22% implies a 10% negative spread against loans. So taking loans is worse here!

That's just the simple maths.


Except they've changed the meaning of "greater than", "less than" 😁😁😁

Maximum income tax is 25%.


I think the expected total return from the investment should be more than the cost of loan..


That is the only time it makes to take loans for Investments

awesomeJ:
There are credit bureaus like CRC.
Banks may also have their internal algorithms.

OK. Gracias

Olaide1295:
Bro, this is not about Lafarge but the entity. Lafarge is just a name of the entity at a particular point. It has been Wapco.
Even now, it can be changed to Huaxin if the new owners like.
The point here is that, that entity has been in Nigeria for over 60 years and has repatriated money out of Nigeria for most of those years before deciding to have boots on ground.

You see, I understand all what you have said. But it is necessary to draw the line and put things in proper perspective..
For instance, if Huaxin should take over, you cannot say Huaxin has been repatriating money from Nigeria to China for more than 60years.. You have to start counting from when they took over. That is my point.

ACA finally exits Aradel

https://guardian.ng/business-services/aca-exits-aradel-holdings-in-n387-4-billion-deal/

For info purposes, Larfarge still has majority stake in Huaxin.
I still wonder the magnificent difference in control.

megawealth01:
Don’t See Taxes As Punishment, FIRS Boss Tells Nigerians

https://tribuneonlineng.com/dont-see-taxes-as-punishment-firs-boss-tells-nigerians/

Lol

emmanuelewumi:
Maximum income tax is 25%.

yeah, but you don't use the "maximum income tax" in this sort of analysis. You use the average.
The amount involved needs to be higher than 50m before you even use 25% at all, and even then the effective tax rate still isn't 25%

pluto09:
https://businessday.ng/business-economy/article/nigeria-is-finally-selling-more-than-oil/

I want to tell u a story...

PETERiCHY:
A QUICK one for the NEWBIES.

STOCK MARKET is an OCEAN either you keep FLOATING or you get DROWN,

SOME of us have been in this GAME for over 2 DECADES but it took us a WHOOPING 10years to BREAK-EVEN then went back to the DRAWING BOARD to RE-STRATEGIZE the way FORWARD

KNOW this and know PEACE ✌️

BARGAIN HUNTERS TAKE NOTE!

*ThE OcToPuS* 🐙🦑

For many new investors, especially those who entered the market in the last 3 years, the experience has been largely bullish.

https://www.youtube.com/watch?v=7zfJWIKVg_s

A few stocks I'd be watching in today's trading session on the NGX

DING!!!

AMCON sells 34% major stake in Unity Bank to Providus Bank

https://thenationonlineng.net/amcon-sells-34-major-stake-in-unity-bank-to-providus-bank/

if capital gain tax is 25% and interest on loan is 27% which one will go for

megawealth01:
1. Income vs. Wealth: Understanding the Basics

Ordinary people usually earn income from salaries or wages. Salaries are taxed heavily (in many countries, at rates of 20–40% or higher).

Rich people, however, focus on building wealth (assets like real estate, stocks, businesses, or intellectual property). Wealth can grow in value without being taxed until it is sold.

2. How Debt Comes In

When rich people need money, they don’t usually sell their assets (because selling would trigger taxes like capital gains tax). Instead, they:

1. Buy Assets – e.g., real estate, stocks, or businesses.

2. Borrow Against Assets – They use those assets as collateral to get loans from banks.

Example: If a billionaire owns #100M in stocks, they can borrow #20M from the bank using the stocks as collateral.

3. Why It’s Smart: Loan proceeds (debt) are not considered income, so they are not taxed.

3. Why Debt Isn’t Taxed

Tax laws only tax income (like wages, dividends, or realized capital gains).

A loan is not income, because it has to be repaid. Therefore, if a rich person borrows against their assets, they get cash in hand without a tax bill.

4. Using Debt to Grow Richer

Wealthy people don’t just borrow money to spend it recklessly; they use debt as leverage to grow:

Buy More Assets – e.g., borrow money to buy more property or stocks, which then generate rental income or dividends.

Business Expansion – use loans to scale businesses, increasing long-term wealth.

Lifestyle Spending

Without Selling – they can fund a luxury lifestyle (houses, jets, cars) with loans, while their assets keep appreciating.

5. Extra Benefits

Interest Deductions: In many countries, interest payments on certain types of debt (like business or real estate loans) are tax-deductible, reducing taxes even further.

Asset Appreciation:

Assets like real estate and stocks often grow in value over time, so their wealth increases while they’re borrowing tax-free.

Estate Planning: Some use debt as a way to transfer wealth to heirs while minimizing estate taxes.

6. Practical Example

Suppose a billionaire owns #500M worth of stock in a company:

If they sell #50M of stock - They pay capital gains tax (say 20%) = #10M tax. They’re left with only #40M.

If they borrow #50M from the bank using the stock as collateral → They get the full #50M cash, no taxes due.
Meanwhile, their stock continues to grow in value.

A TOTAL OF 691,958,007 UNITS OF ARADEL HOLDINGS PLC SHARES WERE DONE AS AN OFF-MARKET TRADE TODAY IN SIX DEALS. THE TRANSACTION WAS A NEGOTIATED CROSS DEAL BY CARDINALSTONE SECURITIES LTD AS BOTH SELLER AND BUYER

OFF Market Trade: A TOTAL OF 691,958,007 UNITS OF ARADEL HOLDINGS PLC SHARES WERE DONE AS AN OFF-MARKET TRADE TODAY IN SIX DEALS. THE TRANSACTION WAS A NEGOTIATED CROSS DEAL BY CARDINALSTONE SECURITIES LTD AS BOTH SELLER AND BUYER.

mosh2035:
OFF Market Trade: A TOTAL OF 691,958,007 UNITS OF ARADEL HOLDINGS PLC SHARES WERE DONE AS AN OFF-MARKET TRADE TODAY IN SIX DEALS. THE TRANSACTION WAS A NEGOTIATED CROSS DEAL BY CARDINALSTONE SECURITIES LTD AS BOTH SELLER AND BUYER.

https://doclib.ngxgroup.com/Financial_NewsDocs/252_Notification_of_Dealing_-_Capital_Alliance_Private_Equity_(CAPE)_IV_Limited.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/252_Notification_of_Dealing_-_Petrolin_Ocean_Limited.pdf

Source
https://ngxgroup.com/exchange/data/company-profile/?symbol=ARADEL&directory=companydirectory

awesomeJ:
Sure thing.
Will do in the morning.

Gracias.. Good morning

Aradel gaining some positive attention in the market as envisaged.

jckgroup1:
Price may never see sub N500

megawealth01:
1. The cost of fund at 27% vs capital gains tax

If you take an asset-backed loan at 27% interest, that means you’re paying ₦27 annually for every ₦100 borrowed.

Capital Gains Tax (CGT) in Nigeria is 10% on the profit when you sell an asset.

On the surface, 27% financing cost looks much more expensive than 10% tax.

👉🏽 But the real comparison depends on:

What the borrowed money is used for:

If you use it to fund an asset or business yielding above 27% ROI, then the loan pays for itself and you still come out ahead.

If the yield is below 27%, then you are worse off compared to just paying capital gains tax and selling.

Timing of payment:

With a loan, you don’t sell the asset, so you keep enjoying potential future appreciation.

With CGT, once you sell, the asset (and its future growth potential) is gone forever.

So — if your asset is appreciating at, say, 40% annually, then paying 27% finance cost is still better than selling and paying 10% CGT (because you keep the compounding gains on the full value).

2. Loans aren’t usually for spending but for acquiring income-generating assets

You’re absolutely right — the wealthy don’t usually borrow just to “spend”; they borrow to leverage:

Borrow against assets → free up cash → buy more assets (real estate, businesses, investments).

The original asset keeps appreciating, and the new asset generates cash flow to help service the loan.

This way, they expand their balance sheet without ever selling, meaning they legally avoid triggering capital gains tax.

3. Holding assets vs paying finance costs

Here’s the trade-off:

If you sell the asset:

Pay 10% CGT.

Lose future appreciation.

Lose collateral you could have used to borrow again.


If you borrow against the asset:

Pay interest (27% in your case).

Keep the appreciating asset.

Potentially use the borrowed funds to buy something that generates more than 27%.

So when are you better off?

If the expected return > cost of borrowing (27%), borrowing is better.

If the expected return < 27%, selling and paying CGT is cheaper.

If you need short-term liquidity, but believe in long-term asset growth, borrowing helps you avoid losing out on future appreciation

it reminds me of Logan and his media company in the TV series succession.

All these jijo guys no just allow the market rest
It looks this CGT go be blessing in disguise for real investors..lol.
I see serious drop in jijo next yr

https://www.youtube.com/watch?v=KERAcq_8y5Y

A snapshot of trading so far on the NGX today.

PETERiCHY:
A QUICK one for the NEWBIES.

STOCK MARKET is an OCEAN either you keep FLOATING or you get DROWN,

SOME of us have been in this GAME for over 2 DECADES but it took us a WHOOPING 10years to BREAK-EVEN then went back to the DRAWING BOARD to RE-STRATEGIZE the way FORWARD

KNOW this and know PEACE ✌️

BARGAIN HUNTERS TAKE NOTE!

*ThE OcToPuS* 🐙🦑

This is 2025, it should not be the case, becauseyou took 10 years to break even does not mean that everyone should do the same.......

Traders most often than investors make a bullish market.

Are you in the market to make money or claim ownership?

Streetinvestor2:
All these jijo guys no just allow the market rest
It looks this CGT go be blessing in disguise for real investors..lol.
I see serious drop in jijo next yr

jckgroup1:
Traders most often than investors make a bullish market.

Are you in the market to make money or claim ownership?

PETERiCHY:
A QUICK one for the NEWBIES.

STOCK MARKET is an OCEAN either you keep FLOATING or you get DROWN,

SOME of us have been in this GAME for over 2 DECADES but it took us a WHOOPING 10years to BREAK-EVEN then went back to the DRAWING BOARD to RE-STRATEGIZE the way FORWARD

KNOW this and know PEACE ✌️

BARGAIN HUNTERS TAKE NOTE!

*ThE OcToPuS* 🐙🦑

The stock market isn’t just an ocean where you either float or drown.
It’s more like a skill-based journey—you learn, you grow, you adjust.

Yes, some people take years before they see consistent results, but with the right knowledge, discipline, and patience, you don’t have to wait a whole decade to break even.

Instead of just “surviving,” focus on building your financial literacy, setting realistic goals, and managing risks wisely. That’s how you actually navigate the market successfully.

Bargain hunting is good, but smart investing is better.

yMcy56:
Why do you want to sell now and not later when you can make some more change on it?

* UNITY/PROVIDUS merger....
*N3.18 buyout of UNITY
* OR, you opt for 18 shares of PROVIDUS for 17 shares of UNITY.
** Though subject to relevant stakeholders approval

If you don't have update yet, see it below...
https://financeinafrica.com/news/nigerias-unity-providus-advance-merger/

Thanks