₦airaland Forum

emmasoft:
The truth is, the 10-year (2012 - 2022) tax holiday on withholding tax (WHT) on interest from Tbills and such instruments ended in 2022. I'm really surprised that even institutions are just implementing this now because the law is not new.

That is the shocking thing.

The WHT holiday expired since 2022. Wonder why FIRS is in a hurry to implement it now.

A former colleague who is now a stock broker said that they took up the case with the FG Tax committee Chairman and he said that come January 2026 when the new tax laws comes into effect, WHT will not be applicable as there is no provision for it since the tax holiday has ended. So do not know if FIRS being aware of this wants to quickly collect it from existing investments before the new tax laws kick in.

emmasoft:
The truth is, the 10-year (2012 - 2022) tax holiday on withholding tax (WHT) on interest from Tbills and such instruments ended in 2022. I'm really surprised that even institutions are just implementing this now because the law is not new.

That's what I have tried to say earlier. Except they is another holiday or exemption, even if you decided to take it up with them you won't win. Also, whether you collected interest upfront and the money was later deduction from your presumed capital or not, so long as the amount deducted equates to 10% of the supposed interest then it is what it is because the holiday has already expired since.

That said, what I don't like is changing the goal post at the middle of the game. If you didn't communicate it to the investors at the beginning of investment and it wasn't included in the terms and conditions of their contract why bringing it up at the end. It should be clearly stated when the contract was initiated for proper planning. If done that way, whoever is not interested might as well opt out of the investment.

freeman67:
That's what I have tried to say earlier. Except they is another holiday or exemption, even if you decided to take it up with them you won't win. Also, whether you collected interest upfront and the money was later deduction from your presumed capital or not, so long as the amount deducted equates to 10% of the supposed interest then it is what it is because the holiday has already expired since.

That said, what I don't like is changing the goal post at the middle of the game. If you didn't communicate it to the investors at the beginning of investment and it wasn't included in the terms and conditions of their contract why bringing it up at the end. It should be clearly stated when the contract was initiated for proper planning. If done that way, whoever is not interested might as well opt out of the investment.

Exactly, It wasn't communicated at the beginning of investment nor was it included in the terms so why steal from people at the end of their investments. This is anyhowness and should not be allowed. The implementation should start come 2026. Simple as ABC. What they have just done is daylight robbery.

Investor Behaviour in a Low Interest-Rate Regime & Why Ponzi Schemes Thrive

In every economy, interest rates influence how people save, invest, borrow, and manage money. When interest rates fall to very low levels, investor behaviour changes significantly. This shift creates both opportunities and risks. One major risk is the rise of Ponzi schemes and high-yield fraudulent investments.

Let's consider:
1. How investors behave in a low-rate environment.
2. Why Ponzi schemes become more active and successful.
3. The connection between the two.
4. How investors can protect themselves.

Understanding a Low-Interest-Rate Regime
A low-interest-rate regime is a period when:
• Treasury bills, government bonds, and fixed-income instruments offer low returns.
• Banks reduce lending and saving rates.
• The cost of borrowing falls.
This environment affects both consumer behaviour and investment choices.

Investor Behaviour in a Low-Rate Regime
a. The “Search for Yield” Effect
Low returns from traditional safe investments push investors to look for alternatives.
They begin to explore:
• Higher-yield bonds
• Mutual funds
• Real estate
• Equity markets
• Private placements
This is called the search-for-yield phenomenon.

b. Increased Risk Appetite
With treasury bills around 16% or less, investors feel dissatisfied.
They become more tolerant of risk and start considering investments they previously avoided.
This leads to more participation in:
• Crypto and forex trading
• Venture opportunities
• Online “investment platforms”

c. Shift Toward Short-Term Investments
Investors want returns quickly, not in 1–5 years.
This short-term orientation increases their vulnerability to fraudulent schemes promising:
• “10% monthly”
• “Double your money in 90 days”
• “Daily payouts”

d. Herd Behaviour and FOMO
When low rates persist, people begin to follow crowd trends:
• “Everyone is doing this new investment — it must be legit.”
• “My friends are earning 15% monthly — let me join.”
Fear of missing out becomes a powerful motivator, often overriding proper due diligence.

e. Reduced Demand for Traditional Instruments
Investors move their money away from:
• Tbills
• Fixed deposits
• Money market funds
Because the returns seem “too small” compared to informal alternatives.

Why Ponzi Schemes Thrive in a Low-Rate Regime
Ponzi schemes flourish in such an environment for several reasons:

a. Attractive Return Gap
When official instruments offer 15% per annum and a Ponzi scheme advertises 10–20% per month, the temptation becomes strong.
To many people, it looks like:
“Why settle for 15% per year when someone is offering 60–100% in the same period?”
Ponzi operators use this gap as a selling point.

b. Faster Recruitment and Viral Growth
Because many investors are searching for higher returns, Ponzi schemes:
• Recruit faster
• Spread through social media
• Grow through referral bonuses
• Gain quick public traction
Rapid inflows keep the scheme alive temporarily — until it inevitably collapses.

c. Emotional Appeal and Psychological Manipulation
Fraudsters take advantage of economic frustration.
They position their offers as:
• “A way for your money to work in hard times.”
• “A unique opportunity higher than bank rates.”
• “Better than keeping money idle.”
They exploit desperation, greed, trust, and ignorance.

d. Use of Legitimate Investment Language
Ponzi schemes now appear sophisticated, using:
• Professional branding
• Investment jargons
• Financial projections
• Influencer endorsements
• Pay-in / pay-out dashboards
Many even claim to invest in:
• Agriculture
• Forex
• Oil & gas
• Real estate flipping
• Digital assets
This makes them look credible to unsuspecting investors.

e. Weak Due Diligence From Investors
Low-rate environments cause people to focus more on returns instead of the business model, leading to questions like:
- “How much will I make?”
instead of - “How is the money generated?”
This behaviour is the lifeblood of Ponzi schemes.

f. Quick Collapse Due to Unrealistic Promises
Ponzi schemes collapse faster during low-rate regimes because:
• Promised returns are impossible to generate legitimately.
• Increasing withdrawals exceed new investments.
• Economic pressure accelerates the drain on the system.
The fall is often sudden, leaving massive losses.

Connecting the Two
Investor Behaviour + Ponzi Strategy = Perfect Storm, see the chain below:
Low-rate regime → Investors seek higher yield → Ponzi schemes offer “miracle returns” → Investors rush in → Scheme grows → Scheme collapses.
Please note that low interest rates do not cause Ponzi schemes.
But they create the conditions in which Ponzi schemes thrive.

How Investors Can Protect Themselves
a. Understand the Risk–Return Relationship
Higher returns always come with higher risk.
There is no exception.

b. Verify Regulatory Status
Before investing, check:
• SEC registration
• Fund manager licence
• Trustee details
• Custodian details
No registration = massive red flag.


c. Ask the Right Questions
• Where is the money invested?
• What is the business model?
• How is the return generated?
• Is the return within industry reality?
If the answer is vague or complicated, walk away.

d. Avoid Emotional Investing
Decisions should come from research, not:
• Pressure
• Greed
• Testimonials
• Social media hype

e. Prioritize Safety Over Speed
It’s better to grow your capital slowly than lose it quickly.

Conclusion
In a low-interest-rate environment:
• Investors become more return-hungry.
• Risk appetite increases.
• People become susceptible to unrealistic offers.
• Ponzi schemes thrive by promising what the market cannot deliver.
The key is financial discipline, due diligence, and understanding that sustainable wealth takes time.

LET’S INVEST WISELY. REMEMBER THE RETURN OF CAPITAL SHOULD TAKE PRIORITY OVER RETURNS ON CAPITAL.

alezzy13:
I'm sure that's applies. Since the upfront has already been paid, they likely removed it from the principal.

But he stated otherwise...especially why he is pissed off with the whole thing.

Personally, I will advice those investing on TB to cool off a bit till the whole process becomes clearer. it makes no sense you got 10 percent interest on your capital but when WHT is deducted, the equivalent will be shooting towards 20 percent . That is robbing Peter and robbing Paul inorder to do Owmabe without considering paying Zachariah

NL1960:
That is the shocking thing.

The WHT holiday expired since 2022. Wonder why FIRS is in a hurry to implement it now.

A former colleague who is now a stock broker said that they took up the case with the FG Tax committee Chairman and he said that come January 2026 when the new tax laws comes into effect, WHT will not be applicable as there is no provision for it since the tax holiday has ended. So do not know if FIRS being aware of this wants to quickly collect it from existing investments before the new tax laws kick in.

Everyone concerned should write on FIRS Digital page
We have sent and Tag FIRS and Other s
Expiration Tax break on TB doesn't mean it will automatically start ..
a start date should be effectively communicate
No wonder Trump called Nigeria a disgraced Nation

emmasoft:
Investor Behaviour in a Low Interest-Rate Regime & Why Ponzi Schemes Thrive

In every economy, interest rates influence how people save, invest, borrow, and manage money. When interest rates fall to very low levels, investor behaviour changes significantly. This shift creates both opportunities and risks. One major risk is the rise of Ponzi schemes and high-yield fraudulent investments.

Let's consider:
1. How investors behave in a low-rate environment.
2. Why Ponzi schemes become more active and successful.
3. The connection between the two.
4. How investors can protect themselves.

Understanding a Low-Interest-Rate Regime
A low-interest-rate regime is a period when:
• Treasury bills, government bonds, and fixed-income instruments offer low returns.
• Banks reduce lending and saving rates.
• The cost of borrowing falls.
This environment affects both consumer behaviour and investment choices.

Investor Behaviour in a Low-Rate Regime
a. The “Search for Yield” Effect
Low returns from traditional safe investments push investors to look for alternatives.
They begin to explore:
• Higher-yield bonds
• Mutual funds
• Real estate
• Equity markets
• Private placements
This is called the search-for-yield phenomenon.

b. Increased Risk Appetite
With treasury bills around 16% or less, investors feel dissatisfied.
They become more tolerant of risk and start considering investments they previously avoided.
This leads to more participation in:
• Crypto and forex trading
• Venture opportunities
• Online “investment platforms”

c. Shift Toward Short-Term Investments
Investors want returns quickly, not in 1–5 years.
This short-term orientation increases their vulnerability to fraudulent schemes promising:
• “10% monthly”
• “Double your money in 90 days”
• “Daily payouts”

d. Herd Behaviour and FOMO
When low rates persist, people begin to follow crowd trends:
• “Everyone is doing this new investment — it must be legit.”
• “My friends are earning 15% monthly — let me join.”
Fear of missing out becomes a powerful motivator, often overriding proper due diligence.

e. Reduced Demand for Traditional Instruments
Investors move their money away from:
• Tbills
• Fixed deposits
• Money market funds
Because the returns seem “too small” compared to informal alternatives.

Why Ponzi Schemes Thrive in a Low-Rate Regime
Ponzi schemes flourish in such an environment for several reasons:

a. Attractive Return Gap
When official instruments offer 15% per annum and a Ponzi scheme advertises 10–20% per month, the temptation becomes strong.
To many people, it looks like:
“Why settle for 15% per year when someone is offering 60–100% in the same period?”
Ponzi operators use this gap as a selling point.

b. Faster Recruitment and Viral Growth
Because many investors are searching for higher returns, Ponzi schemes:
• Recruit faster
• Spread through social media
• Grow through referral bonuses
• Gain quick public traction
Rapid inflows keep the scheme alive temporarily — until it inevitably collapses.

c. Emotional Appeal and Psychological Manipulation
Fraudsters take advantage of economic frustration.
They position their offers as:
• “A way for your money to work in hard times.”
• “A unique opportunity higher than bank rates.”
• “Better than keeping money idle.”
They exploit desperation, greed, trust, and ignorance.

d. Use of Legitimate Investment Language
Ponzi schemes now appear sophisticated, using:
• Professional branding
• Investment jargons
• Financial projections
• Influencer endorsements
• Pay-in / pay-out dashboards
Many even claim to invest in:
• Agriculture
• Forex
• Oil & gas
• Real estate flipping
• Digital assets
This makes them look credible to unsuspecting investors.

e. Weak Due Diligence From Investors
Low-rate environments cause people to focus more on returns instead of the business model, leading to questions like:
- “How much will I make?”
instead of - “How is the money generated?”
This behaviour is the lifeblood of Ponzi schemes.

f. Quick Collapse Due to Unrealistic Promises
Ponzi schemes collapse faster during low-rate regimes because:
• Promised returns are impossible to generate legitimately.
• Increasing withdrawals exceed new investments.
• Economic pressure accelerates the drain on the system.
The fall is often sudden, leaving massive losses.

Connecting the Two
Investor Behaviour + Ponzi Strategy = Perfect Storm, see the chain below:
Low-rate regime → Investors seek higher yield → Ponzi schemes offer “miracle returns” → Investors rush in → Scheme grows → Scheme collapses.
Please note that low interest rates do not cause Ponzi schemes.
But they create the conditions in which Ponzi schemes thrive.

How Investors Can Protect Themselves
a. Understand the Risk–Return Relationship
Higher returns always come with higher risk.
There is no exception.

b. Verify Regulatory Status
Before investing, check:
• SEC registration
• Fund manager licence
• Trustee details
• Custodian details
No registration = massive red flag.


c. Ask the Right Questions
• Where is the money invested?
• What is the business model?
• How is the return generated?
• Is the return within industry reality?
If the answer is vague or complicated, walk away.

d. Avoid Emotional Investing
Decisions should come from research, not:
• Pressure
• Greed
• Testimonials
• Social media hype

e. Prioritize Safety Over Speed
It’s better to grow your capital slowly than lose it quickly.

Conclusion
In a low-interest-rate environment:
• Investors become more return-hungry.
• Risk appetite increases.
• People become susceptible to unrealistic offers.
• Ponzi schemes thrive by promising what the market cannot deliver.
The key is financial discipline, due diligence, and understanding that sustainable wealth takes time.

LET’S INVEST WISELY. REMEMBER THE RETURN OF CAPITAL SHOULD TAKE PRIORITY OVER RETURNS ON CAPITAL.

Excellent write up.

Given the current downward trend in rates, how safe and reliable are MFBs like Renmoney and Fairmoney? considering both platform offering north of 22% p.a. with option of 365days or 730 days

I am considering subscribing to Fairlock, or Renvault, take the interest upfront, and invest in real-estate.

I notice platform like I-Invest has listed fixed deposit note of fairmoney in the past (although not entirely sure of this but I think I have seen it)

Has anyone successfully invest in fixed deposit with either of these two?, and what was your experience like with them.

What investment opportunity can one explore, the goal of is to invest the cash and use the return to acquire asset that would generate more cashflow. For example how can one invest 100m in todays market to safely maximise returns?

digitalinvestor:
Excellent write up.

Given the current downward trend in rates, how safe and reliable are MFBs like Renmoney and Fairmoney? considering both platform offering north of 22% p.a. with option of 365days or 730 days

I am considering subscribing to Fairlock, or Renvault, take the interest upfront, and invest in real-estate.

I notice platform like I-Invest has listed fixed deposit note of fairmoney in the past (although not entirely sure of this but I think I have seen it)

Has anyone successfully invest in fixed deposit with either of these two?, and what was your experience like with them.

What investment opportunity can one explore, the goal of is to invest the cash and use the return to acquire asset that would generate more cashflow. For example how can one invest 100m in todays market to safely maximise returns?

The normal investment rule stands - the higher the returns the higher the risk.

Currently as per economic realities, all low risk investment windows in the country are between 15 to 19%. Anything outside this bracket can not be considered as low risk. Hence for any investor to invest, it will depend on the investor's risk tolerance and that is a major factor to consider not just the return.

100m with a low risk tolerance investor at this time, the best investment window to put it will be bonds or mutual funds particularly MMF, otherwise for high risk tolerance investor, it will be to buy fundamentally sound and dividend paying stocks in tranches ie to continue to buy the dip pending when the bull will resurface.

skydiver01:
As expected, FGN bond prices have increased (reduced yields) reflecting the introduction and application of WHT on Nigerian Treasury Bills.

And there will be another bond auction tomorrow.

Hopefully we get to see more people bid and lock in on current rates.

emmasoft:
The truth is, the 10-year (2012 - 2022) tax holiday on withholding tax (WHT) on interest from Tbills and such instruments ended in 2022. I'm really surprised that even institutions are just implementing this now because the law is not new.

Yes it's not new. There was a circular around January 2022 or so to this effect. Maybe Firs didn't really care about the implementation reason why some charge and others don't charge

As expected Naira sliding back to 1500 from 1420 .
People divesting from Treasury bill and loading USD due to poorly taught out policy of WHT .Nigeria and it's Naira is an unstable Currency Slamming 10 percent WHT tax on a currency with risk of Devaluation is sheer stupidity.

When

On a very good day

Please who knows when Rental payments will be made for this Sukuk. It's 6months now.

Nakedman:
Please who knows when Rental payments will be made for this Sukuk. It's 6months now.

The payment is supposed to be on the 23rd which was yesterday. However, yesterday was weekend so they didn't pay. If it's before you will be sure that the payment would not exceed today but these days they do whatever they like so keep your fingers crossed today and tomorrow.

freeman67:
The payment is supposed to be on the 23rd which was yesterday. However, yesterday was weekend so they didn't pay. If it's before you will be sure that the payment would not exceed today but these days they do whatever they like so keep your fingers crossed today and tomorrow.

Thanks so much. I got the same response from customer service this morning. So fingers crossed.

Nakedman:
Please who knows when Rental payments will be made for this Sukuk. It's 6months now.

It’s 23rd - Payment will be made this week. Sometimes they take extra 2 to 3 days nowadays.

talk2tonie:
It’s 23rd - Payment will be made this week. Sometimes they take extra 2 to 3 days nowadays.

Thanks 🙏

NL1960:
Stanbic Asset Management has transitioned to individual accounts that you now pay to. Were you not sent a mail on that?.

I didn't get a mail I sent them a mail and I got another number to pay to .
Pls what will I write as narration

heavenisreal18:
I didn't get a mail I sent them a mail and I got another number to pay to .
Pls what will I write as narration

To be on the safe side, still put your e-account as narration.

With this individual account in the same UBA, reconciliation is now easier. Stanbic Asset Management does not even need to do their usual cut-off of 12noon for same day and next day after 12noon. It can be an online real time process if they are interested in full integration. Even redemption can be immediate. Even deposit on weekends and public holidays should be possible.

Educationalserv:
As expected Naira sliding back to 1500 from 1420 .
People divesting from Treasury bill and loading USD due to poorly taught out policy of WHT .Nigeria and it's Naira is an unstable Currency Slamming 10 percent WHT tax on a currency with risk of Devaluation is sheer stupidity.

1500/$ is slowly crawling back in again. Wahala go dey. Looking and the 90day and 180days on Tbills, the subscription was so low.

Nakedman:
Please who knows when Rental payments will be made for this Sukuk. It's 6months now.

Mine just landed! Hopefully, you will receive yours soonest.

talk2tonie:
It’s 23rd - Payment will be made this week. Sometimes they take extra 2 to 3 days nowadays.

Just got paid today. Wish I had invested much more and clock in the 19% for 7years.

Mpr retained

Nakedman:
Just got paid today. Wish I had invested much more and clock in the 19% for 7years.

Enjoy!
I wish I invested more too.

Nakedman:
Just got paid today. Wish I had invested much more and clock in the 19% for 7years.

Abeg, how did you go about the investment? This is the only fgn investment that don't have calender, or regular update regarding its investment by people.

other ones like Treasury Bill have up to date information.

DAramis:
Abeg, how did you go about the investment? This is the only fgn investment that don't have calender, or regular update regarding its investment by people.

other ones like Treasury Bill have up to date information.

There are different kinds of FGN bonds but this is called Sukuk. You have to follow DMO to keep you updated when bonds are to be auctioned

DAramis:
Abeg, how did you go about the investment? This is the only fgn investment that don't have calender, or regular update regarding its investment by people.

other ones like Treasury Bill have up to date information.

There's always advert for sale of federal government securities.

I think the Sukuk was posted here also. You may also want to sign up with your investment firm/stockbroker so you get notified of happenings

Odunharry:
There's always advert for sale of federal government securities.

I think the Sukuk was posted here also. You may also want to sign up with your investment firm/stockbroker so you get notified of happenings

My investment firm doesn't share any specific information on this or other ones. And I don't think I have stockbroking firm which I follow.

Nakedman:
There are different kinds of FGN bonds but this is called Sukuk. You have to follow DMO to keep you updated when bonds are to be auctioned

I am aware. I am talking specifically about Sukuk. How do I follow DMO? on social media or what specifically?

DAramis:
My investment firm doesn't share any specific information on this or other ones. And I don't think I have stockbroking firm which I follow.

OK you can also follow DMO on social media. They post also

Darien4:
Good evening, everyone.
I've some fund to invest but I'm yet to figure out the safest and more profitable means to use.
A friend introduced piggyvest to me and the interest rate is 20% per annum to be paid upfront. I'm also reading about Treasure bills here which has lower interest rate.

Please, help me recommend the best and safest one to choose. Thank you.

I am not sure whether piggyvest interest rate is up to 20%. Please double check.