₦airaland Forum

skydiver01:
Meanwhile, FGN bond prices have been going up (reducing yields) while the Naira has also been slowly appreciating

People locking in it at current rate before they see decrease in rate.. September bid was oversubscribed by 500%.

Omo

Tijani009:
1m in 6 months will yelled how much?

The interest rates vary. The secondary market range for today as at the time I checked is 15-16% for 44-345days.

skydiver01:
Meanwhile, FGN bond prices have been going up (reducing yields) while the Naira has also been slowly appreciating

https://x.com/PBATSignal27/status/1975247460957130999

"Why the Drop in FGN Bond Yields Signals a Stronger Economy

When people ask, “Has the FGN Bond dropped again?” they often assume it’s bad news. After all, lower yields mean lower returns for investors, right?

Not necessarily. In fact, the recent decline in Federal Government of Nigeria (FGN) bond yields is one of the strongest signs that Nigeria’s economy is stabilizing, investor confidence is rising, and the Federal Government’s reform strategy is working. Let’s break it down.

FGN bond yields represent the return investors receive when they lend money to the government. So, when yields drop, it simply means demand for those bonds is high, more people are buying.

That’s not a crisis; it’s confidence. Investors, both local and international, are signaling that they believe Nigeria’s current direction is credible and sustainable. They see less risk and are willing to accept lower returns in exchange for safety.
In other words, a drop in yields means the government’s paper is now more trusted and attractive.

Under President Bola Ahmed Tinubu, Nigeria has undertaken major economic reforms, from unifying exchange rates to removing fuel subsidies and granting greater independence to the Central Bank of Nigeria (CBN).
While some of these moves initially caused short-term discomfort, they have restored confidence among investors, rating agencies, and financial institutions. These reforms are seen as necessary steps to reposition Nigeria on a path of fiscal responsibility and long-term growth.
The result? Rising investor appetite for Nigerian bonds, leading to lower yields.

From a fiscal standpoint, lower bond yields are good news for government finances.
It means the Federal Government can now borrow at lower interest rates, reducing its debt servicing burden. This allows more funds to be redirected to critical sectors like infrastructure, education, agriculture, and social investment programmes.
In short, cheaper borrowing equals more fiscal breathing space, a key goal of the Tinubu administration’s economic strategy.

For retail investors, lower bond yields may look like smaller short-term gains. But the broader opportunity is in the stability this trend brings.
When the bond market stabilizes, it creates room for other investment options to thrive from corporate bonds (which often offer higher yields) to equities and mutual funds.
As inflation expectations begin to ease, a more predictable investment environment emerges. This makes it easier for individuals and businesses to plan, save, and grow wealth sustainably.

Nigeria’s economy has endured turbulence, from inflationary pressures to exchange rate volatility. But today, the message from the bond market is clear: confidence is returning.

Falling yields are a signal of normalization, a reflection that the worst of the volatility may be behind us, and that policies are beginning to take effect. For the first time in years, Nigeria’s bond market is sending a positive message: the economy is regaining credibility.

This development is part of a broader narrative. The Tinubu administration has emphasized fiscal discipline, transparent debt management, and economic diversification.

Key steps such as:
I. Strengthening local debt markets
II. Refinancing high-interest obligations
III. Enhancing FX market transparency
IV. And promoting digital bond auctions
…have all combined to create a more resilient, investor-friendly environment.

So yes, FGN bond yields have dropped again but that’s not a sign of weakness. It’s a sign of strength.
It shows that investors now have greater trust in Nigeria’s fiscal direction, confidence in its policies, and optimism in its economic future.

Nigeria’s financial system is healing, and the drop in bond yields is proof that the reforms are beginning to bear fruit."

2 and 3 years FGN Saving Bond at 14.06% and 15.06 % respectively

skydiver01:
All join. Naira is worth more than it was 12 months ago (N1650:$1 to currently N1442:$1).
Our Naira is buying more Dollars and our Dollar is buying less Naira. Herein, also lies the beauty of diversification

The discredit goes to Trump and not credit to tinubu.

Dollar falls, naira is static which is a good thing.

RayRay06677:
The discredit goes to Trump and not credit to tinubu.

Dollar falls, naira is static which is a good thing.

Lol.. you don't want to commend the current administration for it initiative so far ? Yes Dollar lost value this year but give kudos biko

if the economy is not improving despite falling bond yields, it may indicate:
- *Underlying issues*: Structural problems in the economy, like low productivity or debt, might be hindering growth.
- *Lack of confidence*: Businesses and consumers might be hesitant to invest or spend due to uncertainty ..🤔

Odunharry:
Lol.. you don't want to commend the current administration for it initiative so far ? Yes Dollar lost value this year but give kudos biko

It's Trump's inaction and not tinubu's action

Quite right

Odunharry:
People locking in it at current rate before they see decrease in rate.. September bid was oversubscribed by 500%.

Omo

skydiver01:
Quite right

Boss we need to deal. Attractive FD rates.

I will pm you

Any auction today?

Today's auction

enque:
Today's auction

Another drop in rate in 180 and 364days tenure

Oh well
I guess rates are officially going down

Odunharry:
Another drop in rate in 180 and 364days tenure

enque:
Oh well
I guess rates are officially going down

Yes people should start taking advantage available rates. There was a time rate was as low as 10%.

Remember when we saw over 24%yield last year

Time and seasons....lol

Odunharry:
Yes people should start taking advantage available rates. There was a time rate was as low as 10%.

Remember when we saw over 24%yield last year

RayRay06677:
The discredit goes to Trump and not credit to tinubu.

Dollar falls, naira is static which is a good thing.

Why do you guys ignorantly say things you have little knowledge about with full confidence?

I am happy to let you know that naira is not static as you have claimed. In fact, naira is appreciating against major foreign currencies. For instance, 1 saudi riyal was exchanged for 410 naira last 3 weeks, but the rate has dropped to 385 naira as at yesterday. Naira has also appreciated against British Pound. Are you still suggesting that naira appreciation against all other currencies is till Trump's effects?

Don't let Low Rate Equals NO INVESTMENT For You

Rates are going lower and there is nothing you can do about that but there is one thing you have power to do - INVEST YOUR MONEY. Don't let low rate meet cash in your hands or bank account.

By the way low rate is actually one of the signs of better economy.

Remember to use my link or be in touch to help my ministry 😊

Happy investing.

Is it normal practice for banks to charge 1% management fee/ vat on secondary market treasury bills?? Never experienced that with primary market...

kristien4:
Is it normal practice for banks to charge 1% management fee/ vat on secondary market treasury bills?? Never experienced that with primary market...

I know some banks charge some other fee and don't take WHT.
I know few asset mgt that charge only statutory WHT.

[quote author=kristien4 post=137072913][/quote]The tenure is over 300days. rate is abit low though. Renmoney definitely give you better returns.

I didnt see any WHT, maybe they don't charge but you need to clarify if there will be any deduction at maturity.

[quote author=kristien4 post=137072913][/quote]FairMoney MFB does better than this guys. For 5m at this tenor, I get more than 6m at maturity.

kristien4:
Is it normal practice for banks to charge 1% management fee/ vat on secondary market treasury bills?? Never experienced that with primary market...

It's usually on the profit or interests made

emma2002:
It's usually on the profit or interests made

49,000 charged from 800k profit, thats over 5%. Reason why primary auction is preferable

enque:
Today's auction

88

[quote author=kristien4 post=137072913][/quote]Please what app are u using to invest

ICEWIN:
Please what app are u using to invest

Stanbic bluenest app.

By the time the 91 days elapse and you wanna re-invest, there is a probability that rates might have gone lower for both 91 days and 364 days tenor.

Remember you do not have any control over these rates going up or down.
#My2Cents

petux:
sorry to ask but why would anyone invest in the 364 days @ 18% when they can get just do 91 days @ 15% and even compound the money quickly? or i'm not getting something right?

Woa! Is this not too much? Almost #50k for management fee and VAT? Pls which bank is this?




[quote author=kristien4 post=137072913][/quote]

I have never experienced this with GTB. I always use them

kristien4:
49,000 charged from 800k profit, thats over 5%. Reason why primary auction is preferable

Risingcash94:
Woa! Is this not too much? Almost #50k for management fee and VAT? Pls which bank is this?

Stanbic ibtc