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Treasury Bills In Nigeria - Investment (602) - Nairaland

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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)

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Re: Treasury Bills In Nigeria by Ibrahim505(m): 8:26pm On Nov 01, 2018
I have more convenience doing it with i-invest app, now that, i am serving in a remote village in northeast.
The rate is 11.5% with a shortest tenure of 42days.

1 Like

Re: Treasury Bills In Nigeria by cmoney22222: 8:30pm On Nov 01, 2018
Thank you for your email.

Please find below treasury bill rates as requested.

91d – 10.9600%
182d – 12.6900%
364d – 13.4490%

Thank you for your valued patronage.

Best regards,
I also just got debited from stanbic but I got below 13% stipulated for 182 days. Is there anyone else who did TB with stanbic for 182 days? Wld like to know d rate they bided for 182 days coz I got around 12.2%[/quote]
Re: Treasury Bills In Nigeria by TheSam: 8:51pm On Nov 01, 2018
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.

1 Like

Re: Treasury Bills In Nigeria by elog(m): 9:05pm On Nov 01, 2018
The risk is high due to fluctuations of exchange rates.

TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.

3 Likes 1 Share

Re: Treasury Bills In Nigeria by Just2endowed2(m): 9:08pm On Nov 01, 2018
pls who secondaory rate for stanbic
Re: Treasury Bills In Nigeria by ahiboilandgas: 9:13pm On Nov 01, 2018
TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.
it foriegn exchange risk....u .can come in as a foriegn investor or better euro bond
Re: Treasury Bills In Nigeria by Apitch(m): 9:24pm On Nov 01, 2018
Stanbic is yet to debit me.
Why always ME
Re: Treasury Bills In Nigeria by TheSam: 9:54pm On Nov 01, 2018
Like how, please highlight on how to come in as foreign Investor and Euro bond stuff.
ahiboilandgas:
it foriegn exchange risk....u .can come in as a foriegn investor or better euro bond
Re: Treasury Bills In Nigeria by talktrue1(m): 9:59pm On Nov 01, 2018
From my calculation, its like stanbic did 14.2 for 364 days

1 Like

Re: Treasury Bills In Nigeria by katamo: 9:59pm On Nov 01, 2018
TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.

First of all, you will be hard pressed to get a loan at 2% annual interest rate. It is more likely to be in the high single digits.

In any case, as others have pointed out, you will be exposed to exchange rate risk. So if the naira per dollar/euro exchange rate moves against you (that is, if it goes up) by the time your T-bills mature, you will be exchanging the same amount of naira for less dollars/euros. With the recent increase in interest rates in the US and other countries, investments in those countries are becoming more attractive to foreign investors who have been invested in the Nigerian market and you can see this in the increase in investment outflows over the last couple of months. The Nigerian government has been using foreign reserves to intervene in the forex market to keep the naira stable over the last few months - hence the trend of decreasing foreign reserves. What you propose looks to me like a risky strategy in the current environment particularly if oil prices decrease which will impact our ability to replenish our foreign reserves which we are using to keep the exchange rate stable.

4 Likes

Re: Treasury Bills In Nigeria by Ugoh11: 10:15pm On Nov 01, 2018
TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.
TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.


Something you can do is buy dollar futures (which is buying dollars at a particular rate in the future) to hedge against fx risk..
so if you wanted to invest 1000000 naira in the 364 Tbills at say 14%. You will buy dollar futures for the equivalent of what you expect from your investment which is your principal * 1.14 sobthat when it matures you pay for the dollar at the futures rate hence shielding you from the fx risk..
what I don’t know is if your local bank or local banks sell futures to individuals...
Re: Treasury Bills In Nigeria by Akerewe(m): 10:27pm On Nov 01, 2018
ozymes:
Unusually high rates are clear indications of desperation to remain liquid.
I doubt dis but u can mention d said microfinance name so dat pple can validate dem for u
Re: Treasury Bills In Nigeria by silentone: 10:41pm On Nov 01, 2018
Please when is the next bidding and what is the difference between secondary and primary market?
Re: Treasury Bills In Nigeria by katamo: 10:43pm On Nov 01, 2018
Ugoh11:



Something you can do is buy dollar futures (which is buying dollars at a particular rate in the future) to hedge against fx risk..
so if you wanted to invest 1000000 naira in the 364 Tbills at say 14%. You will buy dollar futures for the equivalent of what you expect from your investment which is your principal * 1.14 sobthat when it matures you pay for the dollar at the futures rate hence shielding you from the fx risk..
what I don’t know is if your local bank or local banks sell futures to individuals...

If you can do this and still make money then it you essentially have a riskless trade. I think that in reality people will exploit this opportunity and the price of the futures contract will increase (because of increased demand) and as such eliminate the arbitrage opportunity.

1 Like

Re: Treasury Bills In Nigeria by Acidosis(m): 11:26pm On Nov 01, 2018
TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.

...depends on how soon you would start paying back and your repayment plans (flat rate or reducing balance rate).

For reducing balance rate, don't invest the whole sum on a single tenure. You can buy 90 days, 180 days and 364 days.

Anyone with an unlimited access to a loan at zero or extremely low interest rate can become a radical millionaire in 2-3 years with NO work or business. Take the loan and go to bed!
Re: Treasury Bills In Nigeria by ozymes: 12:11am On Nov 02, 2018
Balotelli
Apitch:
Stanbic is yet to debit me.
Why always ME
Re: Treasury Bills In Nigeria by ozymes: 12:20am On Nov 02, 2018
state your reasons for disputing please
Akerewe:
I doubt dis but u can mention d said microfinance name so dat pple can validate dem for u

1 Like

Re: Treasury Bills In Nigeria by dipoolowoo: 3:50am On Nov 02, 2018
CBN Mops up N517b to Curb Inflation as Investors Snub OMO Auction
https://www.businesspost.ng/2018/11/02/cbn-mops-up-n517b-to-curb-inflation-as-investors-snub-omo-auction/
Re: Treasury Bills In Nigeria by TheSam: 6:20am On Nov 02, 2018
Repayment starts after 5 months. Flat rate
Acidosis:


...depends on how soon you would start paying back and your repayment plans (flat rate or reducing balance rate).

For reducing balance rate, don't invest the whole sum on a single tenure. You can buy 90 days, 180 days and 364 days.

Anyone with an unlimited access to a loan at zero or extremely low interest rate can become a radical millionaire in 2-3 years with NO work or business. Take the loan and go to bed!
Re: Treasury Bills In Nigeria by hias2012(m): 7:48am On Nov 02, 2018
TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.

Check again. I hope it is not 2% monthly?
2% monthly is different from 2% annually
2% monthly = 24% yearly. This is the approach by most loan shacks. Zedadvance and the likes will say less than 3% to get their loan. Whatever percentage they charge is monthly.

2 Likes 1 Share

Re: Treasury Bills In Nigeria by Acidosis(m): 8:47am On Nov 02, 2018
TheSam:
Repayment starts after 5 months. Flat rate

How much are you applying for? For how long?

The information is required for a valid recommendation. For flat rate however, my advice is to spread your investment over different tenures both at the primary and secondary markets. Remember, the higher the loan, the better.

For example, a one-year loan of N12m at an annual interest rate of 2% would be paid on the basis of paying back N1.02m per month for 12 months.

The interest per month is N20k, and N240k for a year.

Without much calculations, you're sure of making at least 600-700k at the end of the year by simply doing nothing.

If I were you though, I would consider other options (e.g. business). Opportunities like that are very rare.

2 Likes

Re: Treasury Bills In Nigeria by DInkMan(m): 9:06am On Nov 02, 2018
Apitch:
Stanbic is yet to debit me. Why always ME
it is also applicable to me as at this moment. have u heard from them?
Re: Treasury Bills In Nigeria by dammy222(f): 9:28am On Nov 02, 2018
DInkMan:


it is also applicable to me as at this moment.
have u heard from them?
Which tenor did you apply for ?

1 Like

Re: Treasury Bills In Nigeria by ayodeji1(m): 10:35am On Nov 02, 2018
is 350days at 14% from uba a fair deal?

1 Like

Re: Treasury Bills In Nigeria by yinkaoke(f): 10:46am On Nov 02, 2018
Mfunkynation:

my advice..... just dont look in their direction

Please man can you clearly state your reasons for the advice; we are hear to rub minds, learn and exchange ideals.

I would really appreciate if you can explain further. we all are out to get the best returns ever with limited risk. I am looking at some risk asset to up my returns.

Please boss explain
Re: Treasury Bills In Nigeria by Nobody: 10:57am On Nov 02, 2018
Hello house , I came across an investment app Cowrywise they offer a high rate interest with various tenures ... Please how safe is saving money in all these apps?? Has anyone use them
Re: Treasury Bills In Nigeria by Mfunkynation(m): 11:24am On Nov 02, 2018
ayodeji1:
is 350days at 14% from uba a fair deal?
grab it with your two hands now.
is it from Today Tb secondary market? cos fbn dont even have 12% or 13% for today

2 Likes

Re: Treasury Bills In Nigeria by GonFreecss1: 11:59am On Nov 02, 2018
Mfunkynation:

grab it with your two hands now

When you guys apply for Tbills, how long does it take to accept your bids?
Re: Treasury Bills In Nigeria by lancee(m): 12:02pm On Nov 02, 2018
ayodeji1:
is 350days at 14% from uba a fair deal?

Good deal
Re: Treasury Bills In Nigeria by TheSam: 12:02pm On Nov 02, 2018
hias2012:

Is 2% per annum. Repayment starts after 5months
Check again. I hope it is not 2% monthly?
2% monthly is different from 2% annually
2% monthly = 24% yearly. This is the approach by most loan shacks. Zedadvance and the likes will say less than 3% to get their loan. Whatever percentage they charge is monthly.
Acidosis:


...depends on how soon you would start paying back and your repayment plans (flat rate or reducing balance rate).

For reducing balance rate, don't invest the whole sum on a single tenure. You can buy 90 days, 180 days and 364 days.

Anyone with an unlimited access to a loan at zero or extremely low interest rate can become a radical millionaire in 2-3 years with NO work or business. Take the loan and go to bed!
Re: Treasury Bills In Nigeria by Mfunkynation(m): 12:07pm On Nov 02, 2018
FBN offering 11 + for my M. the refuse to tell me the days .
when i turn the offer down, he was vibrating that 11% was good that i should take it.
i just jejely walk away
Re: Treasury Bills In Nigeria by Adegokenath(m): 12:09pm On Nov 02, 2018
Thank you contacting Union Bank, my name is Joy. The rate apply as follows.
10.96% 91days
13.4 % 182 days
14.4% 1year

1 Like

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