₦airaland Forum

Mynd44:
Inflation is at 11.3%

Hating the government doesn’t mean we should lie or post false information.

Thanks

Granted. But I must say you have made it a habit to always be on the side of the government.

Don't accuse others of bias and misinformation when the government you defend display those features on a daily basis.

SLAP44:
The current rate is 13.31% and you issue bonds at 12.75%

These guys needs to go learn a trade at Alaba international market because their lecturer failed woefully.

Bro, inflation rate is not static...but that bond rate is static. So, it's a 5years, 10years bond. Inflation may reduce going by the trends of inflation figures which have been falling for quite sometime now.

Venerable612:
The article says Minimum subscription is 50million - or did I read wrong?

So it is exclusively for the rich? How can one buy?

ayofag:
Minimum unit to buy is 50 million naira.

You can buy through mutual funds

Cantonese:
So it is exclusively for the rich? How can one buy?

Buy through mutual fund

Cantonese:
So it is exclusively for the rich? How can one buy?

People have money in Nigeria brother... but with time we shall all get there... as long as we work smart and pray hard.

7days to go

All of you are just looking at the inflation figure. It's not like that now.

ajayiopy:
CAN WE SELL THIS COUNTRY AND LET ME HAVE MY SHARE?

How much do you think your share will be?

Bloooody:
BABA IS WORKING

.......to cripple our country with debts, loans and poverty.
What kind of a Baba is that

ellalina:
I wish I took economics more serious. Now I don’t understand sheet you saying

me too

ayofag:
Minimum unit to buy is 50 million naira.

So this govt only cater for the rich people.

UncleJudax:
Granted. But I must say you have made it a habit to always be on the side of the government.

Don't accuse others of bias and misinformation when the government you defend display those features on a daily basis.

ayofag:
Minimum unit to buy is 50 million naira.

But that's why it is FGN bond. For FGN savings bond that is the maximum you can buy and minimum is NGN5, 000. FGN savings bond is offered on the first Monday of the month.

For those talking about inflation in comparison to the interest rate on offer. Well that's not a good idea to assess this. Inflation doesn't generally affect every item of goods and services that has a price tag. However you need to consider the fact that this is investment that is risk free.

A simple analogy might help here:

Assuming you have ngn40m to build a house of say 4flats in a semi high brow estate. You get rentage of ngn1m each that's ngn4m yearly. This is definitely going to be with maintenance as time goes on. You will pay government charges, rates etc. You might experience bad tenants sometimes etc.

On the other hand with FGN savings bond with the March 2019 rate which is about +12% I will get NGN4.8m flat with no risks. You are even on tax exemption.

In addition you can trade the bonds on the NSE and you can even use the certificate as collateral just like the building too. It is easily liquidated as well.

Even though owning a house is something that comes with prestige and some sense of pride, its a hype as it doesn't pay better business wise.

These are my thoughts, I stand to be corrected.

ayofag:
Minimum unit to buy is 50 million naira.

Naijas don't take time to read through the lines....yiu think givernment will give you and i such opportunity to flock their bondages...lok

IamaNigerianGuy:
Current inflation rate is 13.31%.
Besides that, nations can hardly afford to issue bonds at 20%

inflation is just above 11% but thanks for correcting the ignorant sucker.

nonsense, na eyesour rock i want make them auction so that i go buy am

Bringing this down to money circulation in the economy, I think the high interest rate of 12% for a risk free investment will be an attraction for money market sector. Banks for instance would be attracted to buy more of this bond with the money they would have Loaned to SME/industries and this will mean more savings/injection then expenditures in the economy hence reducing spending which will bring down inflation.

SLAP44:
Inflation is above 20% and you issue bonds at 13%?

Are there no educated persons in Buharri government?

na who i go ask?

Lovelyn451:
me too

Where are u in faggae? I'm at Burma road. 08034387277

xyjoe:
Bringing this down to money circulation in the economy, I think the high interest rate of 12% for a risk free investment will be an attraction for money market sector. Banks for instance would be attracted to buy more of this bond with the money they would have Loaned to SME/industries and this will mean more savings/injection then expenditures in the economy hence reducing spending which will bring down inflation.

Yeah.FG bonds can curb inflation

Good

SLAP44:
The current rate is 13.31% and you issue bonds at 12.75%

These guys needs to go learn a trade at Alaba international market because their lecturer failed woefully.

Kindly explains why the business plan doesn't make sense. I am an IT expert

SugarMuffin:
So we have money in this country like this

So, u don't know what shares are?
Nawa o
What kinda school do people attend these days

ayofag:
Minimum unit to buy is 50 million naira.

So if I buy at that minimum would it increase by that percentage in ten years

SmartPolician:
So, u don't know what shares are?
Nawa o
What kinda school do people attend these days

I don't know what shares are, kindly lecture me ode.

DaniellaDokubo:
But that's why it is FGN bond. For FGN savings bond that is the maximum you can buy and minimum is NGN5, 000. FGN savings bond is offered on the first Monday of the month.

For those talking about inflation in comparison to the interest rate on offer. Well that's not a good idea to assess this. Inflation doesn't generally affect every item of goods and services that has a price tag. However you need to consider the fact that this is investment that is risk free.

A simple analogy might help here:

Assuming you have ngn40m to build a house of say 4flats in a semi high brow estate. You get rentage of ngn1m each that's ngn4m yearly. This is definitely going to be with maintenance as time goes on. You will pay government charges, rates etc. You might experience bad tenants sometimes etc.

On the other hand with FGN savings bond with the March 2019 rate which is about +12% I will get NGN4.8m flat with no risks. You are even on tax exemption.

In addition you can trade the bonds on the NSE and you can even use the certificate as collateral just like the building too. It is easily liquidated as well.

Even though owning a house is something that comes with prestige and some sense of pride, its a hype as it doesn't pay better business wise.

These are my thoughts, I stand to be corrected.

Thanks for the insight and perspective you brought to the discussion. Please could you give us a breakdown of the interests an investor of N50m into this FGN Bond could possibly earn annually at 12.75% (biennial coupons) and a sense of total interests payments that could possibly be earned during the period till maturity in April 2023?

Onyemadonald:
According to the Debt Management Office (DMO), The Federal Government will auction by subscription N100 billion worth of bonds on March 27.

The DMO disclosed this in a circular on its official website on Tuesday in Abuja, that the five-year re-opening bonds of N40 billion to mature in April 2023 was offered at 12.75%. It said that the seven-year re-opening bonds also of N40 billion to mature in March 2025 would be auctioned at 13.53%.

It added that the 10-year bonds, also re-opening, of N20 billion which would be due in Feb. 2028, would be auctioned at 13.98%.

According to the DMO, units of sale is N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter. The DMO explained that the bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment will be made on maturity date.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

SOURCE: https://www.trendingaccounting.com/2019/03/federal-government-to-auction-n100.html

minimum buying at #50m, chaiii obviously not for the average Nigerian, the rich keep getting rich and the poor, well u know the rest

Abeg what is bound

I have been wondering

Someone should please enlighten a brother