CompareDBest:
This reply is for reinvesting your interest to compound it, or get the True Yield of T-Bills. Please skip or ignore if capitalize means something entirely different:

Ogas on this thread with experience on the matter discussed this most recently on pages 689 and 690. However, if you are time poor like all of us really, try these main replies:
https://www.nairaland.com/878880/treasury-bills-nigeria/688#75396323
https://www.nairaland.com/878880/treasury-bills-nigeria/689#75409612

If we were to summarise
> FirstBank (maybe few others) explicitly offer reinvesting interest on their application forms
> GTBank does not explicitly offer, however, because it only deducts the discounted amount (Capital - upfront Interest), you can state the amount you want to invest is (Capital + upfront interest). GTB then deducts your full capital, including what would have been your upfront interest. Example, say you know the t-bills rate of your bank to be 10%, and you have N900k to invest. If you say you had N900k to invest, GTB will deduct only N810k and credit you with N900k at maturity. However, with this trick, you say you have N1m to invest, then your full N900k will be deducted and you get N1m at maturity.
> It may logically follow that other banks which deduct only discounted amount, not those that deduct full amount then credit back upfront interest even if minutes apart, might also allow the GTBank trick above
> caution should be taken to test above first, even with GTBank as Oga freeman67 only did it ages ago, and every bank does it's own checks differently.
> Also important, in addition to the capital to be deducted, account should have spare cash for all charges (commission, custodian/safekeeping, transaction, processing, 5% VAT on some or all of the preceding fees)

Thank you for this explanation. really appreciate it. i guess I'll go for first bank

lolaluv1:
Please I was charged over 20k for this tb by GTB. Is that what happens in all banks?

done some extrapolation, if your investment is less than 32 million it is on the high side compared to stanbic ibtc rates. 24 million investment in NTB secondary market will cost you 12600 in fees at stanbic ibtc. Can’t really say if the fees are different for primary market.

/

good day house, pls how much does stanbic charge on liquidation of treasury bills as a penal charges?

Hello house, please does anyone know the secondary market rate for GTBank?

Chairman!!!!! for real I got some inspiration reading this your post. I can only imagine your reason to relocate to Canada has more to do with giving your kids boundless oportunities.. welding sir

ahiboilandgas:
I started with around 800 k ,in 2007 now exceeds 50 m..am around mid 30 infact by 2023 my holding with pass 100 m ....and my life long ambition to earn 1 million per month from treasury bill is near..i don't know of am rich or poor but the feeling is nice..
..i don't have an iPhone x this my phone is 40 k ,I used a Honda 2007 (1.4m) and still buy tokunbo shirts (1500 ) jeans 3 k and shoe 5k to 7k ...,I book flight online to get discount and also luv discount shops ...i luv good food so I have a chef that make my meals at time and visit club like quilox or sip atime to spend 5 k...i also give put to charity like 100 k annually ...it a long route to legitimate wealth ....but not easy but very possible ....i don't think am hard working....it a combination of luck ,perseverance, and spirit of keep pushing it will click by God grace ...in 2007 was earning 70 k as a graduate and had a car from my university so I sold the car add my salary saving keep in fix deposit planing to save for my Msc in the UK,I didn't get the visa then I used 200 k to so a MBA in nigeria then the prof taught me treasury bills bond and stock then I became addicted my babe even ran cos I keep prosp the wedding.....so starter don't feel discourage in 5 years time your capital will double and might triple if u keep adding ...am sit.planing to go to Canada via express entry to continue hustling and study for phd...nb typo errors

zohan101:
Chairman!!!!! for real I got some inspiration reading this your post. I can only imagine your reason to relocate to Canada has more to do with giving your kids boundless oportunities.. welding sir

yes I doubt if they can be as rugged as me .....

Thanks a lot

mymadam:

Yes, online through the bank of your choice. Simply visit their website and get in touch with them... online of course.

I will do just that, thanks

CompareDBest:


Yes, typically if you have an account with them already and have agreed email/online indemnity. Otherwise you might be able to open one from abroad, and agree an indemnity too.

Options open to you include:
> send email to/call their customer care; they can also guide you to the right channels
> send an email/txt to or call your account officer/relationship manager
> at least 1 online for Access Bank; tbills.ng
> at least 1 mobile app for Sterling Bank/Parthian Partners; I-Invest

ahiboilandgas:
I started with around 800 k ,in 2007 now exceeds 50 m..am around mid 30 infact by 2023 my holding with pass 100 m ....and my life long ambition to earn 1 million per month from treasury bill is near..i don't know of am rich or poor but the feeling is nice..
..i don't have an iPhone x this my phone is 40 k ,I used a Honda 2007 (1.4m) and still buy tokunbo shirts (1500 ) jeans 3 k and shoe 5k to 7k ...,I book flight online to get discount and also luv discount shops ...i luv good food so I have a chef that make my meals at time and visit club like quilox or sip atime to spend 5 k...i also give put to charity like 100 k annually ...it a long route to legitimate wealth ....but not easy but very possible ....i don't think am hard working....it a combination of luck ,perseverance, and spirit of keep pushing it will click by God grace ...in 2007 was earning 70 k as a graduate and had a car from my university so I sold the car add my salary saving keep in fix deposit planing to save for my Msc in the UK,I didn't get the visa then I used 200 k to so a MBA in nigeria then the prof taught me treasury bills bond and stock then I became addicted my babe even ran cos I keep prosp the wedding.....so starter don't feel discourage in 5 years time your capital will double and might triple if u keep adding ...am sit.planing to go to Canada via express entry to continue hustling and study for phd...nb typo errors

Right now I really don't know how this tb works but from your testimony I will like to get an idea on how I can start investing and the requirements. Thank u

dexla:


Thank you for this explanation. really appreciate it. i guess I'll go for first bank

Just before you do that, new evidence has emerged since our reply that suggests

> Stanbic IBTC got best rate for 364 days (14.95%) on 13 Feb Primary Market Auction, followed closely by GTB (14.85%)...possibly UBA too based on the competition beating rates they are currently offering in the secondary market: https://www.nairaland.com/878880/treasury-bills-nigeria/696
> SkyAngel recently asked Stanbic to reinvest interest although the option was not on the form, and they did, at least in the secondary market: https://www.nairaland.com/878880/treasury-bills-nigeria/697#75781784
> logically, because it is not an option on the form does not mean you should rule something out. Ask your bank with the top rates before you try elsewhere
> Recent rates from FirstBank have not been encouraging: https://www.nairaland.com/878880/treasury-bills-nigeria/697#75752873 . But check as it moves daily in the secondary market

Note banks that lead in Primary Market (Stanbic, GTB) do not always lead in secondary (UBA). Lead is not divine right, and changes daily/weekly. We implore you to compare any rate offered to you to the rates from some other top banks. And always ask their customer care directly if they can reinvest interest...we suspect the answer will usually be A BIG FAT YES!

Akerewe:
good day house, pls how much does stanbic charge on liquidation of treasury bills as a penal charges?

Not sure, also interested if any Oga/Madam here has experience. However, the reply we have from them suggests they do not have penal charges but you are subject to prevailing market rates, as with all other banks. This means you can lose even some of your original capital in addition to your upfront interest forfeited depending on how much the tenor has left and the difference btw your discount rate and the rediscounted rate. Their reply: "There is a ₦300 transaction fee and some upfront interest might be taken from your principal based on the termination request date and prevailing market rates"

Akeey:


Right now I really don't know how this tb works but from your testimony I will like to get an idea on how I can start investing and the requirements. Thank u

Akeey, as I see you reading now, know that TBills is probably the safest high interest yielding investment right now as you are loaning money directly to the producer of the local currency/Naira; i.e., the Federal Government of Nigeria.

You can invest in it via 2 markets; every other Wednesday via Primary Market, or every working day via Secondary Market. Primary market has tenures of 91days, 182 days and 364 days. Secondary market has every tenure between 7 and 364 days. The last primary auction held on Wednesday 13th Feb. Next on 27th. All past results are discussed on this thread and detailed on CBN's website: https://www.cbn.gov.ng/rates/govtsecurities.asp .

However, this post gives you options on where to submit your instruction to purchase tbills from a bank: https://www.nairaland.com/post/75850892 . It can be purchased from other sources too/financial institutions, like merchant banks, brokers. This thread typically uses (commercial) banks.

lolaluv1:
...If too high, please what bank can I do with again? And do I need to open an account?

The biggest cost of purchasing tbills is typically Custody/Safekeeping fee. GTBank's charge is 0.1% which is fair. You will potentially get lower from CBN/FGN's licensed custodians: https://www.cbn.gov.ng/out/2014/bpsd/licensed%20custodians.pdf . This is not certain. By our calculation Stanbic & Union charge one of the lowest; likely 0.05% + 5% VAT. If FCMB figure 0.015% checks out, then it will be the lowest we know of. See our earlier post for more details: https://www.nairaland.com/878880/treasury-bills-nigeria/690#75466434

Unlikely, but if you have been charged COT in the transaction cos your money sits in a current account, then consider moving your money to a savings account before future t-bills purchases.

Note you should consider rate as well as cost. For example, if you get 14.95% with high initial cost and 14.25% from another with lower outgoings, the 0.7% extra yield might more than make up for the higher cost.

carbon1224:
When is the next date for primary auction

Wednesday 27th Feb. Do have your instructions submitted and acknowledged by 1pm Monday 25th preferably, but up to 1pm Tuesday worst case.

CompareDBest:
Akeey, as I see you reading now, know that TBills is probably the safest high interest yielding investment right now as you are loaning money directly to the producer of the local currency/Naira; i.e., the Federal Government of Nigeria.

You can invest in it via 2 markets; every other Wednesday via Primary Market, or every working day via Secondary Market. Primary market has tenures of 91days, 182 days and 364 days. Secondary market has every tenure between 7 and 364 days. The last primary auction held on Wednesday 13th Feb. Next on 27th. All past results are discussed on this thread and detailed on CBN's website: https://www.cbn.gov.ng/rates/govtsecurities.asp.

However, this post gives you options on where to submit your instruction to purchase tbills from a bank: https://www.nairaland.com/post/75850892. It can be purchased from other sources too/financial institutions, like merchant banks, brokers. This thread typically uses (commercial) banks.

Thank u very much. I appreciate

enemarieal:
...Are they banks that usually offer better rates.

Yes, some recent examples:

Fidelity (7 Feb): 357 days @ 14.5%
GTBank (1 Feb...they should have similar after getting 14.85% for 364 days on 13 Feb): 363 days @ 14.5%
UBA (18 Feb): 346 days @ 14.4% and 297 days @ 14.3%
Stanbic (15 Feb): 14.25%
Union Bank (18 Feb): 325 and 318 days @ 14.25%
FCMB (18 Feb): 360 days @ 14.2%

We maintain a fuller list with other tenures for the secondary market on our website. And give dates so you know when the information was valid. We hope this information will be useful some day to this forum, but want to add other features first; not least, calculators.

bless0043:
...help me with page where the link fro TB calculation is

Latest one posted on this thread: https://www.nairaland.com/878880/treasury-bills-nigeria/689#75415986

igbizen:
...I also learnt the next bidding is on the 26th of Feb...

on this smaller point, bids are held Wednesdays usually, so next bidding should be Wednesday 27th Feb.

Go and read the 1st few pages you should be able to understand it very well

Akeey:


Right now I really don't know how this tb works but from your testimony I will like to get an idea on how I can start investing and the requirements. Thank u

SifonAbasi:
Hello house, pls can one buys Tbills from a bank h/she does not have an acct with? Also is National ID, PVC or Intl passport a requirement? Thanks

Not sure about requirements, but, Yes, you can. It differs from bank to bank, each with their own requirements. At least the following have said you do not need an account with them:

>Heritage
>Sterling i-invest app
>Union
>Wema

Most others have said you do, but things move on, and in some cases what the application form says contradicts what customer service/care says. So, ask your customer care or branch. If they say no, go eagle-eye on the application form to see if it says anything about paying with bank-draft, cheque etc Be sure you know all the (COT etc.) costs involved if you choose this path.

Speedyconnect15:
Do you know what happens upon liquidation before maturity.


If I invest 1m at 10% for 365 days, what happens if i need money for emergeny and I liquidate on the 100th day?

Some people said here that I could lose all interests and even my capital. This stems from the premise that rates at the time I am liquidating, could be at 18% whereas I did it at 10%. Their belief is that same T bills will be resold to someone that will now hold till maturity, however at higher interest rate now-- 18%.

"Some people" are correct. There is NO cap to your loss. With the extreme example you gave, you can lose a good % of your capital. Let's do some simple math without taken charges into consideration:

capital - N100k
tenure - 364 days
discounting - 10%pa
rediscounting - 18%pa

You get N10k upfront, N90k deducted. N100k to be credited on 364th day
Day 100, pre-liquidation - some banks (not sure if all) tell you the rediscounting rate so you can reconsider or accept & write formal instruction
The instruction needed to terminate your investment would be N100k @ 18% for 264 days. Your capital and upfront interest needs to fund all of it. That is give N(100*18/100*264/365)= approx. N13k upfront interest to the secondary market buyer.
So you get N110k - N13k = N97k. But, we did not consider charges, so you actually get less

This is why if you scour through this thread, you will tire before you find any of those stalwarts of investment you asked this question saying they pulled their funds halfway. It is an unwritten rule. Understandably, it is only broken as a last resort.

However, the opposite situation can also arise, and some investors use these as opportunities. Imagine you had 1bn and rates fell by 2% in a week; in 7days you could earn 2% of 1bn by rediscounting in the secondary market, give or take some charges.

niyoni:

Hello @ahiboilandgas. Do you mind sharing with me some information on how the wet haulage business works. I am currently looking around for lucrative business ventures. I am based in Port Harcourt and Warri.

BOSS, my advice is stick what pays you and you knows best. The fact that it worked for others does not mean it would automatically work for you good investment strategy will take you there am taking to you from experience don't say because someone is successful in that aspect and you want to rush into it. If can think very well your money will keep working for u per seconds without much stress of knowing if the truck has arrived safely or not. Think and grow rich. My investment strategy before was one sided but when I saw that I need to buy property worth about 60m I changed my investment strategy inline with my risk appetite and buy God grace, Him spearing my life, it would be achieved in the next 5-6yrs. That is my 2 kobo sir

CompareDBest:
"Some people" are correct. There is NO cap to your loss. With the extreme example you gave, you can lose a good % of your capital. Let's do some simple math without taken charges into consideration:

capital - N100k
tenure - 364 days
discounting - 10%pa
rediscounting - 18%pa

You get N10k upfront, N90k deducted. N100k to be credited on 364th day
Day 100, pre-liquidation - some banks (not sure if all) tell you the rediscounting rate so you can reconsider or accept & write formal instruction
The instruction needed to terminate your investment would be N100k @ 18% for 264 days. Your capital and upfront interest needs to fund all of it. That is give N(100*18/100*264/365)= approx. N13k upfront interest to the secondary market buyer.
So you get N110k - N13k = N97k. But, we did not consider charges, so you actually get less

This is why if you scour through this thread, you will tire before you find any of those stalwarts of investment you asked this question saying they pulled their funds halfway. It is an unwritten rule. Understandably, it is only broken as a last resort.

However, the opposite situation can also arise, and some investors use these as opportunities. Imagine you had 1bn and rates fell by 2% in a week; in 7days you could earn 2% of 1bn by rediscounting in the secondary market, give or take some charges.

Thanks for the analysis sir.
Your analysis appears to be the case ordinarily.

I am inclined, however, to believe that this may be merely theoretical or conjectures. I have yet to see anyone whose liquidation before maturity panned out the way analysed above.

My experience with Access was different from analysis above.
Other banks may differ..

At any rate, the uncertainty surrounding the outcome liquidation before maturity may be because of crass ignorance of bankers who give incorrect info. And also because of investors who have never tried liquidating and just rely on same incorrect info and pass it as correct.


Experience is the best teacher here I guess.

aremso:


BOSS, my advice is stick what pays you and you knows best. The fact that it worked for others does not mean it would automatically work for you good investment strategy will take you there am taking to you from experience don't say because someone is successful in that aspect and you want to rush into it. If can think very well your money will keep working for u per seconds without much stress of knowing if the truck has arrived safely or not. Think and grow rich. My investment strategy before was one sided but when I saw that I need to buy property worth about 60m I changed my investment strategy inline with my risk appetite and buy God grace, Him spearing my life, it would be achieved in the next 5-6yrs. That is my 2 kobo sir

Thanks for sharing your thoughts. Just looking out for profitable business ventures as I am tired of offshore life and don't really have any ideas of what profitable businesses to explore.

I am confused,if I invest 7million on 91 days tenor at 10.5rate....how will that be calculated?

kingMuski:
I am confused,if I invest 7million on 91 days tenor at 10.5rate....how will that be calculated?

10.5% is an annual rate. There are 365 days in a year. By investing in a 91 days tenor, you cannot have the same rate and the same calculation with those investing in 181 or 365-day tenors.

To know your interest, find 10.5% of 7 million. Whatever you get, divide it by 4. That's your interest.


Why divide by 4? Well, 91 days in 4 places make one year, so you can't earn the value for a year on a 91 day tenor.

kingMuski:
I am confused,if I invest 7million on 91 days tenor at 10.5rate....how will that be calculated?

your upfront interest is =#183,246

Yields Drop 0.11% as CBN Snubs Investors' Demand for OMO Bills
https://businesspost.ng/2019/02/19/yields-drop-0-11-as-cbn-snubs-investors-request-for-omo-bills/

TB is good, but be aware that if the exchange rate today goes up by up to N55/$ added on the exchange rate of today at anytime within the 1 year period of investment, you are already at a loss.

Speedyconnect15:
...Experience is the best teacher here I guess.

It certainly is. However, nothing new under the Sun, you have some experience on this thread you can learn vicariously from: https://www.nairaland.com/878880/treasury-bills-nigeria/553#70597013

Still best to ask your bank for specific advise before submitting your termination instruction so they tell you realistically what to expect. Rates have not fluctuated as much as the 10% to 18% example you requested, so, after 100 days, it is unlikely you will lose any of your capital.

Also consider trajectory; if rates are falling, waiting 2weeks to terminate might make a world of difference. Conversely, hurry to pre-liquidate if you believe rate rises are expected.

Sammybabelious:
You are Right. Because it actually 1.159M not 1.59M,, n I was told I will be given 1.148M.

BACKGROUND FACTS
Bank invested 1159000 at 9.85% for 91 days for him.

He tried to liquidate after 1 day and bank said he would lose 11k.

SO HOW DID THE BANK ARRIVE AT THE 11K?

.

Oma255:



The 11k charges is the addiction of 25% penalty of primature termination on interest and other small charges of vat and commission fee.
Yes you were charged from your principal because you didn’t have any any interest except for one day which is about 430 naira.

If you had waited till maturity, your interest would have been about 39k, so 25% is like 9,700 + other small charges = 11k

NOBODY IS SURE OF THE 25% ish.

He later said he invested 1,159,000 NOT 1,590,000. at 9.85% for 91 days.

So even with the 25% penalty, custody fee (0.35% max) and processing ( usually 100 naira); IT CANNOT amount to 11k.

Note: No vat is charged on tbills upfront interest.


All are mere conjectures.

I am sure of Access though. I asked several workers but they had no idea. I had to liquidate as a form of experiment after I mailed the head office and got a clueless response.

Cc
Comparedbest

Btw, I like your diction sir . Stellar