OvaSabi1:


You didn't answer my question sir.

Madam, you asked if I thought it was up to 14% . I responded that they said 11% or in the regions

zamirikpo:


Wait ooh, so from what u are saying, that means we should be buying fuel at N230/litre presently. The govt is subsidizing the difference abi.

Ok.....give this ogharra boys that same CRUDE oil , they will provide PMS at N100/l , this Niger delta boys are doing it wella. And mind u a barrel of crude =160litres = 42us gallons.

The science of crude processing is simple.

Gbam. I wonder why people think it is rocket science. Our leaders try to make us believe that it is so that they can rob us. I was taught elementary crude processing in Geography in secondary school and that was when technology had not so much advanced to the current levels.

Speedyconnect15:


Madam, you asked if I thought it was up to 14% . I responded that they said 11% or in the regions

I asked what you think. Not what they said. I asked the question because I think that something is being manipulated somehow. I want to be sure I am not the only one thinking like that. My believe is that when treasury bill rates go up, it means that money supply is going up and then a control mechanism to lock down excess money in circulation is activated. But now that the rates are going down, are we supposed to believe that inflation is on a steady decline? In your opinion, what is the true picture of things?

TotoNaRubber:
Nigerian inflation is way higher than 14%, it could be near 19 percent in reality. On my way own i spend N30k/day = $83 in Nigeria just to live a normal life, anytime i visit a developed country like the US, UK or Spain i spend N9600/day = $26 just live a normal life.

On average it costs me $57 more per day to live in Nigeria.

True, the inflation is that high. I can hardly survive on my weekly budget, always burn out on day 5. Statistically , things don't measure up here. God help us

OvaSabi1:


I asked what you think. Not what they said. I asked the question because I think that something is being manipulated somehow. I want to be sure I am not the only one thinking like that. My believe is that when treasury bill rates go up, it means that money supply is going up and then a control mechanism to lock down excess money in circulation is activated. But now that the rates are going down, are we supposed to believe that inflation is on a steady decline? In your opinion, what is the true picture of things?

Yes CBN uses that to control money in circulation but then there are other imponderables like the oil price etc.

At any rate, I guess inflation rate is still same although I place little or no premium on it.

Again, prognosis so far suggests that Tbill rates will further dip.

Please what's. The rate of treasury bill for first bank

LEAVE YOUR N10m IN YOUR SAVINGS ACCOUNT OR INVEST IT IN TREASURY BILL

CASE STUDY:

My people, I know this case has been analyzed severally by the gurus in the house, but I post this to remind those who already know and also to encourage the ones willing to learn what treasury bill, in essence, is really all about as well as how it differs from the money sitting in your savings account. Below is a practical example.

N10m IN YOUR SAVINGS ACCOUNT:
I have N10m(principle) to invest. If I leave the money in my GTB savings account(which I used to do), GTB would apply 0.3% to my N10m to determine my monthly gain,ROI, interest earned or interest capitalised. So, 0.3% of N10m = N30K monthly....N30K x 12 months = N360K yearly. As long as your principle and interest rate from GTB remain constant for the year, you'll receive N360K from GTB on top of your N10m. Therefore, your income statement on Jan. 1 will show that you're worth N10,360,000

N10m IN TREASURY BILL:
We all remember the formula for simple interest, right? Simple interest(I) = Principle(p)xRate(R)xTime(T) OR I= P × R/100 ×T/364
Tenure options: 91 days, 182 days and 364 days. Assumed Rate and principle are 14% and N10m, respectively.

91 DAYS: I= N10m × 14/100 ×91/364, your automatic interest(ROI) = N350K(if you choose 3 Months)

182 DAYS: I= N10m × 14/100 ×182/364, your automatic interest(ROI) = N700K(if you choose 6 months)

364 DAYS: I= N10m × 14/100 ×364/364, your automatic interest(ROI) = N1,400,000(if you choose 1 year)

From above, your ROI from Tbill in 3 months is almost the same as your ROI from your savings account in 12 months. In fact, your ROI will be higher if interest rate from Tbill is greater than 14%.

BOTTOM LINE: Would you rather leave your N10m in the savings account for ONE YEAR and make extra N360K OR Invest your N10m in Tbill
for ONE YEAR and make extra N1,400,000 on top of your invested capital? The choice is yours...

PLS NOTE: Consider principle and interest rate used above as random numbers, however calculations are 99.9% accurate. You may verify!

Bluecollarguy:
LEAVE YOUR N10m IN YOUR SAVINGS ACCOUNT OR INVEST IT IN TREASURY BILL

CASE STUDY:

My people, I know this case has been analyzed severally by the gurus in the house, but I post this to remind those who already know and also to encourage the ones willing to learn what treasury bill, in essence, is really all about as well as how it differs from the money sitting in your savings account. Below is a practical example.

N10m IN YOUR SAVINGS ACCOUNT:
I have N10m(principle) to invest. If I leave the money in my GTB savings account(which I used to do), GTB would apply 0.3% to my N10m to determine my monthly gain,ROI, interest earned or interest capitalised. So, 0.3% of N10m = N30K monthly....N30K x 12 months = N360K yearly. As long as your principle and interest rate from GTB remain constant for the year, you'll receive N360K from GTB on top of your N10m. Therefore, your income statement on Jan. 1 will show that you're worth N10,360,000

N10m IN TREASURY BILL:
We all remember the formula for simple interest, right? Simple interest(I) = Principle(p)xRate(R)xTime(T) OR I= P × R/100 ×T/364
Tenure options: 91 days, 182 days and 364 days. Assumed Rate and principle are 14% and N10m, respectively.

91 DAYS: I= N10m × 14/100 ×91/364, your automatic interest(ROI) = N350K(if you choose 3 Months)

182 DAYS: I= N10m × 14/100 ×182/364, your automatic interest(ROI) = N700K(if you choose 6 months)

364 DAYS: I= N10m × 14/100 ×364/364, your automatic interest(ROI) = N1,400,000(if you choose 1 year)

From above, your ROI from Tbill in 3 months is almost the same as your ROI from your savings account in 12 months. In fact, your ROI will be higher if interest rate from Tbill is greater than 14%.

BOTTOM LINE: Would you rather leave your N10m in the savings account for ONE YEAR and make extra N360K OR Invest your N10m in Tbill
for ONE YEAR and make extra N1,400,000 on top of your invested capital? The choice is yours...

PLS NOTE: Consider principle and interest rate used above as random numbers, however calculations are 99.9% accurate. You may verify!

Correct except for the fact that if tbills rate for 364 days is at 14%, the rates for 91 and 182days would be 9% - 10% and 12% - 13% respectively!

OgogoroFreak:
Correct except for the fact that if tbills rate for 364 days is at 14%, the rates for 91 and 182days would be 9% - 10% and 12% - 13% respectively!

Correct!

Bluecollarguy, 364 days' discount rate can not be the same with that of 91 and 182 days.

I applied for Tbills last wed,6th with first bank in preparation for next primary aution,13th. Till now,i'm yet to be debited. I thought fbn debit immediately because that was what happened in my last TB or have they changed??

Bluecollarguy:
LEAVE YOUR N10m IN YOUR SAVINGS ACCOUNT OR INVEST IT IN TREASURY BILL

CASE STUDY:

My people, I know this case has been analyzed severally by the gurus in the house, but I post this to remind those who already know and also to encourage the ones willing to learn what treasury bill, in essence, is really all about as well as how it differs from the money sitting in your savings account. Below is a practical example.

N10m IN YOUR SAVINGS ACCOUNT:
I have N10m(principle) to invest. If I leave the money in my GTB savings account(which I used to do), GTB would apply 0.3% to my N10m to determine my monthly gain,ROI, interest earned or interest capitalised. So, 0.3% of N10m = N30K monthly....N30K x 12 months = N360K yearly. As long as your principle and interest rate from GTB remain constant for the year, you'll receive N360K from GTB on top of your N10m. Therefore, your income statement on Jan. 1 will show that you're worth N10,360,000

N10m IN TREASURY BILL:
We all remember the formula for simple interest, right? Simple interest(I) = Principle(p)xRate(R)xTime(T) OR I= P × R/100 ×T/364
Tenure options: 91 days, 182 days and 364 days. Assumed Rate and principle are 14% and N10m, respectively.

91 DAYS: I= N10m × 14/100 ×91/364, your automatic interest(ROI) = N350K(if you choose 3 Months)

182 DAYS: I= N10m × 14/100 ×182/364, your automatic interest(ROI) = N700K(if you choose 6 months)

364 DAYS: I= N10m × 14/100 ×364/364, your automatic interest(ROI) = N1,400,000(if you choose 1 year)

From above, your ROI from Tbill in 3 months is almost the same as your ROI from your savings account in 12 months. In fact, your ROI will be higher if interest rate from Tbill is greater than 14%.

BOTTOM LINE: Would you rather leave your N10m in the savings account for ONE YEAR and make extra N360K OR Invest your N10m in Tbill
for ONE YEAR and make extra N1,400,000 on top of your invested capital? The choice is yours...

PLS NOTE: Consider principle and interest rate used above as random numbers, however calculations are 99.9% accurate. You may verify!

good job fellow investors, pls also help analyze a scenario where d same 10million is invested in mmf for a year.what's going to be the difference between a year tbills & a year mmf yield. ?
thanks in anticipation

T bills Rate.UBA bank as at 9th of March 2019

174 days =12.45%

Bluecollarguy:
LEAVE YOUR N10m IN YOUR SAVINGS ACCOUNT OR INVEST IT IN TREASURY BILL

CASE STUDY:

My people, I know this case has been analyzed severally by the gurus in the house, but I post this to remind those who already know and also to encourage the ones willing to learn what treasury bill, in essence, is really all about as well as how it differs from the money sitting in your savings account. Below is a practical example.

N10m IN YOUR SAVINGS ACCOUNT:
I have N10m(principle) to invest. If I leave the money in my GTB savings account(which I used to do), GTB would apply 0.3% to my N10m to determine my monthly gain,ROI, interest earned or interest capitalised. So, 0.3% of N10m = N30K monthly....N30K x 12 months = N360K yearly. As long as your principle and interest rate from GTB remain constant for the year, you'll receive N360K from GTB on top of your N10m. Therefore, your income statement on Jan. 1 will show that you're worth N10,360,000

N10m IN TREASURY BILL:
We all remember the formula for simple interest, right? Simple interest(I) = Principle(p)xRate(R)xTime(T) OR I= P × R/100 ×T/364
Tenure options: 91 days, 182 days and 364 days. Assumed Rate and principle are 14% and N10m, respectively.

91 DAYS: I= N10m × 14/100 ×91/364, your automatic interest(ROI) = N350K(if you choose 3 Months)

182 DAYS: I= N10m × 14/100 ×182/364, your automatic interest(ROI) = N700K(if you choose 6 months)

364 DAYS: I= N10m × 14/100 ×364/364, your automatic interest(ROI) = N1,400,000(if you choose 1 year)

From above, your ROI from Tbill in 3 months is almost the same as your ROI from your savings account in 12 months. In fact, your ROI will be higher if interest rate from Tbill is greater than 14%.

BOTTOM LINE: Would you rather leave your N10m in the savings account for ONE YEAR and make extra N360K OR Invest your N10m in Tbill
for ONE YEAR and make extra N1,400,000 on top of your invested capital? The choice is yours...

PLS NOTE: Consider principle and interest rate used above as random numbers, however calculations are 99.9% accurate. You may verify!

Hello,

There is no doubting the fact that T Bills are be eternal investment securities with higher returns than most other money market instruments available in the Nigerian Financial system.

However,your calculations and assumptions are quite innacurate and may not potray the exact analysis for practical purposes.

As a guide, T Bills can be done from as low as N500,000 & not N50mm as quoted by a commenter. However certain investment buckets in the T bills market have a minimum of such (where you wish to determine or bid your own rate as aginst that to be set by the CBN during sales).

For savings accounts, interest is compounded monthly and not in simple interest format. You invest N10mm principal, in month one. By month 2 your Total amount becomes N10mm plus N30k interest.
Therefore when calculating the interest for month 2, you no longer use N10mm but N10,030,000 as principal and incrementally so on till month 12.

You should be receiving some few thousand above your straight line calculation of N30k monthly time 12 months.

Also , T bills rate are guided by the MPR (Monetary Policy rate , which Is at 14% today). The are always lower than this rate, once they are issued by the CBN. T Bills are priced based on Tenors rather than amounts. So the interest rate for a 91 days differs from that of a 182 and 364 days (The lower the tenors, the lower the rates).

Also, unlike T Bills, Savings deposits could be negotiated (on a fixed term) & these rate could sometimes rival T bills in some banks, depending on the liquidity appetite for such banks at the time of your proposed investment.

T Bills have an advantage of having no WHT (Witholding Tax) payments, so you get your full interest, tax free, except for some few fees of less than N1,000 charged for transfer and monitoring.

In all, I'd go for a T Bill for higher returns, longer tem investment purpose and funds security. But a fixed deposit for shorter periods and if the funds needs to show on my account statements for related purposes.

ahiboilandgas:

as a bussiness
man u don't pray for prices to be 135
u put in the parameters (cost of raw
material )(cost of wages )(cost of
capital ) distribution cost ,finance cost
(insurance ,taxes etc ) then you get
sale price ....no prayers .....1 barrel of
crude give 100 litres of pms ..crude is
67 dollars x360= 2400/100 that 240 per
litre ,then you evaluate the price of
the residue like 80 naira then add cost
of production the profit is around 10
naira per litre x 60 m litres daily....

this your estimate places ROI at 20 years!


do you really see dangote as one to wait 20 years to recover his imvestment?


BTW, i think remember it was dangote that encouraged FG to remove subsidy so that he can build that refinery and sell at the higher price in order to achieve profitability... I am wrong there?

My bank gave me 10%/annum on Fixed deposit...

RealityShot:
this your estimate places ROI at 20 years!


do you really see dangote as one to wait 20 years to recover his imvestment?


BTW, i think remember it was dangote that encouraged FG to remove subsidy so that he can build that refinery and sell at the higher price in order to achieve profitability... I am wrong there?

People don't read the news and current economic realities, all they do is ply on optimism, too much optimism is dangerous. Many will learn soon.

Please house I put in N900000 on tb secondary market for 91 days at 10.5%. 876,180.82 was debited from my bank account through UBA. Does it mean my interest is only 23,000 naira? It's my first time in tb.

uruogo:
Please house I put in N900000 on tb secondary market for 91 days at 10.5%. 876,180.82 was debited from my bank account through UBA. Does it mean my interest is only 23,000 naira? It's my first time in tb.

Yes. Your upfront interest is N23560. Less the usual TB related charges.

Rexceedo:
My bank gave me 10%/annum on Fixed deposit...

Which bank please?

RealityShot:
this your estimate places ROI at 20 years!


do you really see dangote as one to wait 20 years to recover his imvestment?


BTW, i think remember it was dangote that encouraged FG to remove subsidy so that he can build that refinery and sell at the higher price in order to achieve profitability... I am wrong there?

yes very ....the price modulation was done to absorb affect of crude changes when price went to 30 dollars refine pms landed for 105 and govt was making around 30 naira .when price shoot up to 70 or above the profit from the difference will be used to offset the increase without any cost on the govt ....by ibe kackiwu...example if in January u buy at 145 when land cost is 105 u are paying 40 naira more for may be 4 months then price jump to 125 mid year then 180 last quater it will be 105 +125+180/3 to get the weighted average but it back fired cos the crude hanged 180 for too long then naira devalued ....in real term 145 naira is around 0 .4 dollars compared to one 0.5 dollars (95)we where buying during Jonathan ....foreign exchange is a bitch...2 dangote industries are all plc u can buy share notting concern dangote with when the r.o.i will happen ....what the cash flow and profit after tax and the value of all shares on it stock it will exit perpetually....stoping locking at dangote group from aliko he is the last shareholder...

@Blanc8, I do welcome your observation, but again I did state above that my calculation is valid if bank rate and your principle remain the same; i.e N10m for the whole year, hence you may divest or withdraw your N30K each month instead of it being compounded, and in the subsequent month 0.3% to same N10m. I could have shed more light on my write-up but didn't want it to be voluminous. Also, in case you didn't notice, I applied 14% to all tenures(91, 182, and 364 days, respectively)... my approach is practical not objective. In the real, same rate doesn't apply to all tenures... the purpose of my message is to encourage folks to invest in Tbill because of its long term benefits rather than let their money sit in the bank. All in all, I appreciate your contribution...we live to learn everyday!

Blanc8:



Hello,

There is no doubting the fact that T Bills are be eternal investment securities with higher returns than most other money market instruments available in the Nigerian Financial system.

However,your calculations and assumptions are quite innacurate and may not potray the exact analysis for practical purposes.

As a guide, T Bills can be done from as low as N500,000 & not N50mm as quoted by a commenter. However certain investment buckets in the T bills market have a minimum of such (where you wish to determine or bid your own rate as aginst that to be set by the CBN during sales).

For savings accounts, interest is compounded monthly and not in simple interest format. You invest N10mm principal, in month one. By month 2 your Total amount becomes N10mm plus N30k interest.
Therefore when calculating the interest for month 2, you no longer use N10mm but N10,030,000 as principal and incrementally so on till month 12.

You should be receiving some few thousand above your straight line calculation of N30k monthly time 12 months.

Also , T bills rate are guided by the MPR (Monetary Policy rate , which Is at 14% today). The are always lower than this rate, once they are issued by the CBN. T Bills are priced based on Tenors rather than amounts. So the interest rate for a 91 days differs from that of a 182 and 364 days (The lower the tenors, the lower the rates).

Also, unlike T Bills, Savings deposits could be negotiated (on a fixed term) & these rate could sometimes rival T bills in some banks, depending on the liquidity appetite for such banks at the time of your proposed investment.

T Bills have an advantage of having no WHT (Witholding Tax) payments, so you get your full interest, tax free, except for some few fees of less than N1,000 charged for transfer and monitoring.

In all, I'd go for a T Bill for higher returns, longer tem investment purpose and funds security. But a fixed deposit for shorter periods and if the funds needs to show on my account statements for related purposes.

OgogoroFreak:
Correct except for the fact that if tbills rate for 364 days is at 14%, the rates for 91 and 182days would be 9% - 10% and 12% - 13% respectively!

I totally got your point, besides I know the rate for all 3 tenures are NEVER the same. My approach is practical, not objective. In other words, I used 14% as an arbitrary number to convey a message, which is to convince potential investors that Tbill has more long term benefits than the money sitting in our bank account. But you're absolutely right, I should have applied befitting rates to all tenures, but the application of 14% was intentional, hopefully the message is well understood.

NeyofeedNigEnt:


Which bank please?

ProvidusBank PLC

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all this fairly used bank name self just da tire me

yvonne001:
T bills Rate.UBA bank as at 9th of March 2019

174 days =12.45%

Was offered 12.6% for 181 days

Rexceedo:
My bank gave me 10%/annum on Fixed deposit...

and you think that is a good deal right?


WRONG!!!


1) FD is not a as liquid or flexible as Tbills: its more costly to break it.

...

please house, if i should invest and tick reinvest upfront interest. Hope the interest I will get will be from the upfront interest?

RealityShot:
and you think that is a good deal right?


WRONG!!!


1) FD is not a as liquid or flexible as Tbills: its more costly to break it.

...

Why I go break am?

Just for savings...

TotoNaRubber:
Nigerian inflation is way higher than 14%, it could be near 19 percent in reality. On my way own i spend N30k/day = $83 in Nigeria just to live a normal life, anytime i visit a developed country like the US, UK or Spain i spend N9600/day = $26 just live a normal life.

On average it costs me $57 more per day to live in Nigeria.

How does this sound to you!

You spend 30k daily to live a normal life?

What is a normal life? Which standard are you using?

In a particular vicinity, you can get a plate of food at 400 naira. Same plate may sell at 1500 naira just few kilometers away. The difference may just be the environment both are sold and not even the taste.

Several other examples abound.

You said normal life as though you were referring to a particular thing like 2015 HYUNDAI ELENTRA.

TotoNaRubber:
Nigerian inflation is way higher than 14%, it could be near 19 percent in reality. On my way own i spend N30k/day = $83 in Nigeria just to live a normal life, anytime i visit a developed country like the US, UK or Spain i spend N9600/day = $26 just live a normal life.

On average it costs me $57 more per day to live in Nigeria.

You spent 30k here to live a normal life?
And you spent 26$ abroad to live the same normal life.
How possible?
Tell us about the abroad part how u do it

akinola98:


As someone said
LOCATION LOCATION LOCATION!!!
is what u consider when u buy land for investment/sale

From my personal experience :
I bought a plot of land in a dense area in 2017 for 21 million naira resold 14 months later for 43M while I bought in a less developed area ( same zone o ) for 1.5M and am still struggling to sell for 2M two years afterwards .... so land could give u a good ROI depending on where u invested moreover as an investor u should diversify your holdings ... it should not only be on fixed income investments like TB, MMF etc ....my 2cents

u made 100% in 2yrs, wawu that's amazing.

And you are right about omonile lawyer post here on NL (property moderator), he has dropped a lot of insights all for free that most lawyers would hoard.

Anyone who wants to buy landed properties should take time to go though his threads.

for example people rush C/O properties forgetting they will need to present tax receipts of both Seller and buyer when processing governors consent plus many more inisghts....

Before I was a novice, but with what I have read over the years from his thread, I can do a quite decent job at scrutinizing landed docs.

all the same landed investment sha is one dicey something in lagos