₦airaland Forum

RayRay06677:
Treasury bills (T-bills) in Nigeria are now subject to taxation following the expiration of a previous tax exemption order. The interest earned is subject to a 10% withholding tax (WHT) for corporate entities, while individuals are exempt from this tax, although corporate income tax may still apply.



Please note that individuals are tax free on Tbills.

talk2tonie:
For your information.

NSEstudent:
What is the difference between the security mentioned in no. 5 and what is meant by "government bonds" on no. 7?

Timmi:
Individuals are not exempt from WHT on interest earned only. Go and read the FIRS release again.

RayRay06677:
Are you an investor?
Which bank do you use?
Are you paying WHT?

I don't pay, I invest with first bank.

heavenisreal18:
Is the WHT only applicable to short term, what if is 182 or 365 ,does it mean I won't pay WHT, our gurus investor and finance people help

talk2tonie:
no. 5 are long term securities (bond) issued by the federal government only. Such as FGN savings bond, sukuk bond, FGN bond etc. these bonds tenor are usually from 2 years and above.
No. 7 are short terms securities - usually one year or less.

sirrotex:
I pay and I invest with Fidelity

fannybaby:
Good morning, please someone should help with the next Treasury bills auction date

heavenisreal18:
Pls next bid is Wednesday my investment will matured on Thursday, is the money I am expecting from my last bid I want to use again,my question is can I go and fill the form down .Or I will have to wait till another two week to bid

heavenisreal18:
Pls next bid is Wednesday my investment will matured on Thursday, is the money I am expecting from my last bid I want to use again,my question is can I go and fill the form down .Or I will have to wait till another two week to bid

freeman67:
It's only possible if you subscribe via secondary market.

Reasons why I think it will not be possible through the Primary Market Auction are:

1. You are expected to submit you investment request latest on Tuesday which is today not on the auction day.

2. On submission, your account is vetted to ensure the availability of the required funds immediately. Some banks like FBN will take it even further by taking the money into custody immediately.

3. The probability that the maturing funds will drop on that day of maturity is not 100% these days. Sometimes it could still take about 1 or 2 extra days before the funds drop so.

So there is not way the bank can put you in their plan for that auction. Your best bet will be to reinvest at the secondary market. The only disadvantage is that the rates will be a bit lower and the tenures might not be up to your desired tenure.

heavenisreal18:
Pls next bid is Wednesday my investment will matured on Thursday, is the money I am expecting from my last bid I want to use again,my question is can I go and fill the form down .Or I will have to wait till another two week to bid

freeman67:
It's only possible if you subscribe via secondary market.

Reasons why I think it will not be possible through the Primary Market Auction are:

1. You are expected to submit you investment request latest on Tuesday which is today not on the auction day.

2. On submission, your account is vetted to ensure the availability of the required funds immediately. Some banks like FBN will take it even further by taking the money into custody immediately.

3. The probability that the maturing funds will drop on that day of maturity is not 100% these days. Sometimes it could still take about 1 or 2 extra days before the funds drop so.

So there is not way the bank can put you in their plan for that auction. Your best bet will be to reinvest at the secondary market. The only disadvantage is that the rates will be a bit lower and the tenures might not be up to your desired tenure.

RayRay06677:
Let's assume that as we are confused here on weather the exemption for individuals is real, so is the legal teams of the banks.

No need to argue, I invest with first bank and I have checked all my cerficates and seen that first bank doesn't charge WHT.

At this point, it's a matter of choice, stick to your bank and pay wht or port to my bank and rather use that free 10% for charity.

peleson1:
Pls what is the least amount of one wants to invest in Treasury Bill and how much is the interest rate a month ?

Say I invest 1m naira , how much is the interest a month ?

RayRay06677:
Central bank puts minimum investment at 50m but individual banks have brought that down to as. Low as 100k in most banks. They do the crowd funding and hit above the 50m then invest on your behalf.

On the crowd funding style, you lose your write to set the rate, you go with the bank rate.

But if you have above 50m, you can bid and with your own rate. Take note, bids can be successful or failed. Best to go with bank rates.

On rates, Tbills rates are per annum and never monthly. And rates fluctuate.

Bidding is done every other week. Every 2 weeks.

For one million at 15%, you will get 150k minus charges.

I wish you good luck, I started small some years ago, you can do it.

peleson1:
150k a year ?

Then divide that by 12

Will be

12,500 naira a month .

If 5m

62,500 naira a month.


Kai


Naija

RayRay06677:
Let's assume that as we are confused here on weather the exemption for individuals is real, so is the legal teams of the banks.

No need to argue, I invest with first bank and I have checked all my cerficates and seen that first bank doesn't charge WHT
You can't be too sure of this most bank just started it due to what FIRS release.

At this point, it's a matter of choice, stick to your bank and pay wht or port to my bank and rather use that free 10% for charity.

Timmi:
Individuals are not exempt from WHT on interest earned only. Go and read the FIRS release again.

Risingcash94:
Pls let me get this point clearly. Are you saying that individuals get to pay wht on interest earned and/or capital. Like 10% from your capital?

Timmi:
The bank/investment house will deduct 10% as WHT on INTEREST ONLY.

RayRay06677:
First bank never dedicts as such individuals are free from that, if your bank still deducts then join me at first bank. Enjoy a WHT-free treasury bill investment.

Timmi:
The bank/investment house will deduct 10% as WHT on INTEREST ONLY.