₦airaland Forum

My take!

But WHT is not supposed to be retrospective. It should only apply from the effective date onward, not to investments made before the new rule started.

For example, if someone invests in June and a circular is issued in July mandating WHT deductions, it should not affect those June investors.

If you received interest upfront on a June investment and the bank still deducts WHT on your principal at maturity, that action is highly questionable; it may even amount to a criminal or unlawful deduction.

At the end of the day, the courts will give the proper interpretation of these kinds of policy issues.

Risingcash94:
Thanks. Mine just matured and dropped and I immediately transferred it to another account with nothing left in the account.😂
Have I escaped it?
It's GTB

Except you are in the class of people still exempted like cooperative societies and co, or you intend not to use the account again, that move is not a wise one. Maybe if investors collectively complain about the rules being applied retrogressively which shouldn't be, the authority might listen and become progressive instead or suspend everything altogether if that didn't happen, be sure to know that the bank will never loose.

If the the present status quo remains they'll put a PND on your account or do negative debit and once another money enters the account they'll carry all or remove part of it depending on what the interest was and the amount that entered. It's you that can be left stranded. You can't leave them stranded.

freeman67:
First let me tell you that I am also not happy loosing any money from money I am trying to make more on especially when it was not part of our initial agreement but then it's the government, we just have to comply and maybe complain to the appropriate authority if not pleased.

"Due to the need for immediate implementation, a 10% Withholding Tax will be deducted from the interest earned on Treasury Bills maturing on 06 November 2025. This deduction will also apply to all subsequent maturities going forward.

If you read the excerpts of the notice above especially the bolded you will see that it captures everything. "Interest earned on the TB maturing on 06" includes those paid upfront or deferred till maturity and the only way they would collect it, is from the principal for those that have collected interest upfront or from the interest for those collecting at maturity.


This is the same thing I started having issues about with Commercial Paper in 2024. It was not properly communicated before hand. I just discovered that after a particular CP I did was about to mature I was asked to send my TIN which I did and the next thing I saw was that my proceed was 10% short. It was when I queried it that I was told that the exemption has expired. So, TB even enjoyed like 1 year of non implementation.

But then, why apply rules backwards.? Investment as a contract have terms, why including new terms to your own favour at maturity. That's what I don't like about it. Everything should be stated at the beginning. People already have plans for these funds so bringing new rules at the end of it will only destabilise their plans. The rule have some categories of people exempted anyways. So, if you fall in that category you can ask them to refund but individual investors are no longer exempted so if you use your name and personal account to subscribe it will be deducted except it's later suspended.

This civil servant are just mean and just want to impress Tinibu laws should have a clear start date after expiration and it cannot be backwards or at the fancy of busy body Adedeji .and co .
Borrowed 10m to invest
Everything amount to 12.2m
Am paying back 12m which make 20 percent
Leaving me with a profit of 200k
But Ayodele and Adejeji Civil servant now backrack a so called 10 wht 220,000 which am supposed to pay affecting wipe out my profit and creating loss of 20k .
Is Treasury bill not supposed to be and investment!
Is Treasury bill not supposed to used for Liquidity management
Is Treasury bill not supposed to attract FPI For Fx .
Capital invested has cost .it didn't fall from the sky or looted from public treasury
The Tax reform Chairman claims to be brilliant
But brilliance on paper I guess
Not in real investment cycles and enterprise

FineUsername:
My take!

But WHT is not supposed to be retrospective. It should only apply from the effective date onward, not to investments made before the new rule started.

For example, if someone invests in June and a circular is issued in July mandating WHT deductions, it should not affect those June investors.

If you received interest upfront on a June investment and the bank still deducts WHT on your principal at maturity, that action is highly questionable; it may even amount to a criminal or unlawful deduction.

At the end of the day, the courts will give the proper interpretation of these kinds of policy issues.

The exemption has expired since 2024. It's just that it was not widely communicated to investors and it's implementation did not begin immediately after the expiration in TB.

Another issue is that which individual investor or group of individuals investors will have the time, mind and resources to take the government to court. The bank are just the medium being used to collect the interest even the CBN will eventually tell you the money is being collected for FIRS.. wetin be that their new name sef.

freeman67:
First let me tell you that I am also not happy loosing any money from money I am trying to make more on especially when it was not part of our initial agreement but then it's the government, we just have to comply and maybe complain to the appropriate authority if not pleased.

Thank you for your insight, but this country is becoming increasingly unbearable. I mean, one cannot even have a concrete plan in this country again. What if the money in TB was borrowed? Imagine losing 200k-500k on a borrowed fund, which wasn't planned?

I am not even saying they shouldn't collect WHT, but shouldn't this govt allow it on new investments going forward?

Moreover, investment in TB nowadays does not mean that the investor is happy doing it. Some people are just trying to recover their losses from naira devaluation and exchange rate unification, now this? 8m as at 2019 converted to USD is about 21.9k. So, one will lose money to exchange rate difference and then another to unplanned taxation because of some people's policies (within the same investment window)? What a country.

freeman67:
Except you are in the class of people still exempted like cooperative societies and co, or you intend not to use the account again, that move is not a wise one. Maybe if investors collectively complain about the rules being applied retrogressively which shouldn't be, the authority might listen and become progressive instead or suspend everything altogether if that didn't happen, be sure to know that the bank will never loose.

If the the present status quo remains they'll put a PND on your account or do negative debit and once another money enters the account they'll carry all or remove part of it depending on what the interest was and the amount that entered. It's you that can be left stranded. You can't leave them stranded.

I have been tag him since last week it other raise alarm on the Dangers they might have a rethink like the drug barons pardon list
I rather abandoned the account than pay any 10 percent of capital
The money is not for the Bank imagine investor with 100m ,1 bn so bank will remove 2m or 20m at WHT
Majority of funds in Treasury bill are from pension fund who have paid income Tax from Salary them what it left is remitted to a PFA
Again FIRS follow the Money there to Collect 10 percent WHT .
If you buy airlines tickets from the Money you pay another Tax ,shop you pay VAT buy fuel you pay levy

Educationalserv:
This civil servant are just mean and just want to impress Tinibu laws should have a clear start date after expiration and it cannot be backwards or at the fancy of busy body Adedeji .and co .
Borrowed 10m to invest
Everything amount to 12.2m
Am paying back 12m which make 20 percent
Leaving me with a profit of 200k
But Ayodele and Adejeji Civil servant now backrack a so called 10 wht 220,000 which am supposed to pay affecting wipe out my profit and creating loss of 20k .
Is Treasury bill not supposed to be and investment!
Is Treasury bill not supposed to used for Liquidity management
Is Treasury bill not supposed to attract FPI For Fx .
Capital invested has cost .it didn't fall from the sky or looted from public treasury
The Tax reform Chairman claims to be brilliant
But brilliance on paper I guess
Not in real investment cycles and enterprise

Sorry about this. That's what I don't like about the whole issue. Terms and conditions should be clear from beginning and followed through till the end. Addition of rules at the end destabilises plans.

I think GTB has already started deducting before this 6th November, according to @Heavenisreal18's experience.
Meanwhile I also use GTB for most of my investments and have never been charged wht. But one of my investments with them matured yesterday 6th November and immediately I got the alert I transferred everything from my account. So I don't know if they would have deducted from it or not.
However I am unsure if I have escaped it cuz I have like four more running with them. One should mature next month.
My fear is if they might decide to deduct this already matured one I escaped with from my future maturing tbills 😞
Do they have any right to do that. Besides I am yet to receive any emails from them to notify of this changes.

freeman67:
First let me tell you that I am also not happy loosing any money from money I am trying to make more on especially when it was not part of our initial agreement but then it's the government, we just have to comply and maybe complain to the appropriate authority if not pleased.

"Due to the need for immediate implementation, a 10% Withholding Tax will be deducted from the interest earned on Treasury Bills maturing on 06 November 2025. This deduction will also apply to all subsequent maturities going forward.

If you read the excerpts of the notice above especially the bolded you will see that it captures everything. "Interest earned on the TB maturing on 06" includes those paid upfront or deferred till maturity and the only way they would collect it, is from the principal for those that have collected interest upfront or from the interest for those collecting at maturity.


This is the same thing I started having issues about with Commercial Paper in 2024. It was not properly communicated before hand. I just discovered that after a particular CP I did was about to mature I was asked to send my TIN which I did and the next thing I saw was that my proceed was 10% short. It was when I queried it that I was told that the exemption has expired. So, TB even enjoyed like 1 year of non implementation.

But then, why apply rules backwards.? Investment as a contract have terms, why including new terms to your own favour at maturity. That's what I don't like about it. Everything should be stated at the beginning. People already have plans for these funds so bringing new rules at the end of it will only destabilise their plans. The rule have some categories of people exempted anyways. So, if you fall in that category you can ask them to refund but individual investors are no longer exempted so if you use your name and personal account to subscribe it will be deducted except it's later suspended.

Risingcash94:
I think GTB has already started deducting before this 6th November, according to @Heavenisreal18's experience.
Meanwhile I also use GTB for most of my investments and have never been charged wht. But one of my investments with them matured yesterday 6th November and immediately I got the alert I transferred everything from my account. So I don't know if they would have deducted from it or not.
However I am unsure if I have escaped it cuz I have like four more running with them. One should mature next month.
My fear is if they might decide to deduct this already matured one I escaped with from my future maturing tbills 😞
Do they have any right to do that. Besides I am yet to receive any emails from them to notify of this changes.

is not the Bank money they supposed to deduct and transfer to Mr Tinibu FGN they can choose not to comply cos of legal implications of been sued and damages paid which it's cheaper for them .the FIRS don't have the working tool to track all transactions

Ok I hope so o. This country don tire person o.

Educationalserv:
is not the Bank money they supposed to deduct and transfer to Mr Tinibu FGN they can choose not to comply cos of legal implications of been sued and damages paid which it's cheaper for them .the FIRS don't have the working tool to track all transactions

Thanks for your response 🙏

Educationalserv:
is not the Bank money they supposed to deduct and transfer to Mr Tinibu FGN they can choose not to comply cos of legal implications of been sued and damages paid which it's cheaper for them .the FIRS don't have the working tool to track all transactions

tundebasic:
Thank you for your insight, but this country is becoming increasingly unbearable. I mean, one cannot even have a concrete plan in this country again. What if the money in TB was borrowed? Imagine losing 200k-500k on a borrowed fund, which wasn't planned?

I am not even saying they shouldn't collect WHT, but shouldn't this govt allow it on new investments going forward?

Moreover, investment in TB nowadays does not mean that the investor is happy doing it. Some people are just trying to recover their losses from naira devaluation and exchange rate unification, now this? 8m as at 2019 converted to USD is about 21.9k. So, one will lose money to exchange rate difference and then another to unplanned taxation because of some people's policies (within the same investment window)? What a country.

@ the bolded is one of the reasons I kept crying on these thread just a while back because I don't know how to appropriately seek redress. It made me not to re-enter some TB position when I planned to. Also my Savings Bond that I intended to do monthly through out the year stoped at 3 months because of that. Apart, from the reckless application of taxation as it is right, one other bad thing is non payment of investment proceed as at when due. This will happen and they won't be any compensation or apologies for it. How will receive investment proceed of a so call fixed income about 5 days later? And gradually it became normal to them. After observing that pattern for about 3 - 4 months, I discovered that it's the pattern the present dispensation has decided to adopt so for my peace of mind I had to make some adjustments.

I was madder than you when I first got the news of the deduction. The worst part is that unlike TB that they are issuing notices now, the Merchant Banks and co that help arrange Commercial Papers where I lean on more now did issue any special notice. The highest they will is while issuing CP advert/notice, they will just include a phrase like "This investment is subject to WHT except otherwise exempted" and that's all.

On your allocation notice which is your proof/certificate of investment, you will not see any WHT in your breakdown. They'll only request for your TIN afterwards if they don't have it and immediately that happens you should be rest assured that your profit/interest as indicated on the proof will be short by 10%.

I don't complain tire as I fit. It didn't change so I have to leave with that.

Like @Educationalserv said above we can tag the Tax man for him to know how we feel especially about the retrospective application of it and hope he sees reasons with our plight to strengthen things. If not you try and develop your own personal mechanism of coping if it doesn't work.

Investor leaving already next naira will crash
If Ayodele and FIRS is not caution.

I actually thought it was a new rule. If it had applied to my investment when it matured and they deducted WHT, I would have taken it to court for interpretation.

But it would have been an effort in futility anyway, since my subscriptions were made this year.

Thanks for the info.

freeman67:
The exemption has expired since 2024. It's just that it was not widely communicated to investors and it's implementation did not begin immediately after the expiration in TB.

Another issue is that which individual investor or group of individuals investors will have the time, mind and resources to take the government to court. The bank are just the medium being used to collect the interest even the CBN will eventually tell you the money is being collected for FIRS.. wetin be that their new name sef.

Hello everyone, pls I did treasury bills with uba and I am trying to break it and they said I can’t break it … how true is this pls

Good day everyone, pls I recently bought Treasury Bills through UBA secondary market few week ago …. and now I’m facing some cash flow issues.

I asked uba customer care on phone today to break/liquidate them before maturity, but they said it’s not possible.

Has anyone dealt with this? How accurate is their policy

Ivan18888888888:
Good day everyone, pls I recently bought Treasury Bills through UBA secondary market few week ago …. and now I’m facing some cash flow issues.

I asked uba customer care on phone today to break/liquidate them before maturity, but they said it’s not possible.

Has anyone dealt with this? How accurate is their policy

It's breakable/redeemable before maturity. The only thing is that you may loose some % of your interest.

It may also take a few days before it's resold. Just go to the branch through which you subscribed. I believe it will be easier there.

Ivan18888888888:
Good day everyone, pls I recently bought Treasury Bills through UBA secondary market few week ago …. and now I’m facing some cash flow issues.

I asked uba customer care on phone today to break/liquidate them before maturity, but they said it’s not possible.

Has anyone dealt with this? How accurate is their policy

Just as @freeman67 said it's possible to terminate but it will cost you some cash and time. Getting a buyer sometimes is not very easy.

This is one of the advantages of MMF. Free entry and exit

With this current WHT on TB is MMF not the sure way forward for people with low risk appetite??

I just subscribed TB till next year..hopefully they change pattern b4 maturity ooo.

Waiting till maturity is the more annoying part. I mean don't tamper with my capital bro! If there must be WHT let it be deducted at the time of investing.
It's more annoying for some people who took their interest upfront 😞

welzyj2:
With this current WHT on TB is MMF not the sure way forward for people with low risk appetite??

I just subscribed TB till next year..hopefully they change pattern b4 maturity ooo.

As at yesterday, only charges remains VAT, custody fee and transaction fee.

From first bank.

Good evening investor fam.
Pls I need advice from anyone who is used to fixed deposits.
I contacted my Access bank account officer for Treasury bills investment and she was instead trying to convince me to invest in fixed deposit claiming rates as high as 20% for 3 months tenures and so on.
It also comes with an added advantage of upfront interest payment if needed. No WHT. Claiming WHT is for corporate firms only.
Omo this is too good to be true considering the current tbills rates and WHT wahala o.
I don ask an tire if there are hidden charges o and she said no o .
Abeg experienced investors in the house, how is this possible ooo, before I go enter one chance
Pls I need urgent response as I'm thinking applying for it tomorrow

WHT may be deducted at maturity.

RayRay06677:
As at yesterday, only charges remains VAT, custody fee and transaction fee.

From first bank.

Risingcash94:
WHT may be deducted at maturity.

The certificate stated amount at maturity. That's a contract, anything short will get us to court.

Lol 😂 ok o

RayRay06677:
The certificate stated amount at maturity. That's a contract, anything short will get us to court.

Educationalserv:
Investor leaving already next naira will crash
If Ayodele and FIRS is not caution.

Ahib, longest time. Your main moniker still never comot from Kuje? How your guy Lazy Youth? E don tey o

Good morning my people. Pls someone help me with this . I need info. I'm not used to fix deposits pls. I find it hard to believe cuz why are people not rushing into it compared to the tbills rates?

Risingcash94:
Good evening investor fam.
Pls I need advice from anyone who is used to fixed deposits.
I contacted my Access bank account officer for Treasury bills investment and she was instead trying to convince me to invest in fixed deposit claiming rates as high as 20% for 3 months tenures and so on.
It also comes with an added advantage of upfront interest payment if needed. No WHT. Claiming WHT is for corporate firms only.
Omo this is too good to be true considering the current tbills rates and WHT wahala o.
I don ask an tire if there are hidden charges o and she said no o .
Abeg experienced investors in the house, how is this possible ooo, before I go enter one chance
Pls I need urgent response as I'm thinking applying for it tomorrow

Risingcash94:
Good morning my people. Pls someone help me with this . I need info. I'm not used to fix deposits pls. I find it hard to believe cuz why are people not rushing into it compared to the tbills rates?

The way it's going now, the advantage TB has over Fixed deposit as regards interest is almost eroded. 20% for 3 months FD, TB will not give you that now. Also, another advantage TB had was that it was initially exempted from WHT but now they've started collecting it so the 20% minus 10% WHT on the interest is 18%. I am not sure you will get that from 91 days TB which is about the equivalent of the 3 months Fixed Deposit.

The major advantage TB has generally is the risk free nature of it. Even dough doing Fixed Deposit might carry more risk, the tenure you are looking at is short and it is with a Commercial Bank not a Microfinance Bank.

Based on the above if I am to be the one, I will do the fixed deposit instead.

Risingcash94:
Good evening investor fam.
Pls I need advice from anyone who is used to fixed deposits.
I contacted my Access bank account officer for Treasury bills investment and she was instead trying to convince me to invest in fixed deposit claiming rates as high as 20% for 3 months tenures and so on.
It also comes with an added advantage of upfront interest payment if needed. No WHT. Claiming WHT is for corporate firms only.
Omo this is too good to be true considering the current tbills rates and WHT wahala o.
I don ask an tire if there are hidden charges o and she said no o .
Abeg experienced investors in the house, how is this possible ooo, before I go enter one chance
Pls I need urgent response as I'm thinking applying for it tomorrow

20% on a FD with a commercial bank. Too good to be true. Is the commercial bank cash strapped or is the amount you want to fix so huge?.

Exactly o. That's why I brought it here o my bro. 20% as at now for fixed deposit is just too good to be true. I don't know what to think o. She keeps reassuring me that it's true.

NL1960:
20% on a FD with a commercial bank. Too good to be true. Is the commercial bank cash strapped or is the amount you want to fix so huge?.