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Treasury Bills In Nigeria - Investment (1247) - 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 bjtinz: 8:11pm On May 24, 2020
Alaska90:



Thank you for highlighting the 2006- 2008 IPO scams....I was a victim

I hope people on this forum will learn oh

What really happened then?
Re: Treasury Bills In Nigeria by bjtinz: 8:15pm On May 24, 2020
emmanuelewumi:



That is speculation build wealth slowly and steadily with your capital and speculate with your dividends or returns from your investment

Interesting.
Re: Treasury Bills In Nigeria by chelseamann(m): 9:03pm On May 24, 2020
I must confess this is the best thread in this website.
Learning new things everyday..this my small change I have must surely grow soon.
Amen

10 Likes

Re: Treasury Bills In Nigeria by Akerewe(m): 9:20pm On May 24, 2020
Good day my people, please how do I go about this sukuk bond and is it possible to terminate sukuk before maturity?

2 Likes

Re: Treasury Bills In Nigeria by damilola1978: 9:25pm On May 24, 2020
ahiboilandgas:
cooperate hawks are cashing out on the windfall i said it ...predators are watching 2006 ipo scams loading...next Ait commercail paper will be out.....this want the cbn wanted all along
I beg to disagree....companies have always rolled out commercial papers...but unfortunately a lot of us on this forum were more inclined to treasury Bill's for obvious reasons. I agree that companies are now using commercial papers to refinance some of their debts/high interest loans, but I dont believe it's in the interest of CBN.
Re: Treasury Bills In Nigeria by damilola1978: 9:27pm On May 24, 2020
Alaska90:



Thank you for highlighting the 2006- 2008 IPO scams....I was a victim

I hope people on this forum will learn oh
any company that is not directly/indirectly involved in finding a vaccine/cure for corona virus and launches IPO now would be doing so at their own perile...my 2 cents...

1 Like

Re: Treasury Bills In Nigeria by Tobex4realTobex234(m): 9:31pm On May 24, 2020
OgogoroFreak:
But investing and doing nothing else while you get paid is not the same as doing something before you earn. Also, you can still do something with the income from the bond.

Truth is that, just buying and keeping dollars is also an investment in itself. Cos those who just bought and keep dollars in 2015 would worth more in Naira today than someone that bought bond at 18% in 2015.

This is false Sir. What exchange rate are you using for USD/NGN?

If you bought $5000 in 2015, you still have $5,000 now
If you invested 1m at 18%, you should have 2.28m now (that's $6000 at 380).. ($5300 at 430)... ($5000 at 457)

So how is it worth more? Which rate are you using Sir?
Re: Treasury Bills In Nigeria by damilola1978: 9:32pm On May 24, 2020
yemibayo:
I don't think you will make profit with this kind of strategy
the risk is more but believe me juice is worth the squeeze if done carefully without greed ofcourse.
Re: Treasury Bills In Nigeria by SirBen90: 9:41pm On May 24, 2020
JIJO grin

1 Like

Re: Treasury Bills In Nigeria by X21: 9:53pm On May 24, 2020
ahiboilandgas:
If u invest 10m now u will get about 18m in 7 years time if naira is now 520 in 2027 u will get 34000 dollars dollars ....an investment of 25000 dollars now your profit is 9000 dollars over 7 years .......just over 100 dollars profit per months.....if u have any thing that can give u better than 120 dollars on a investment of 25000 dollars is better than the bond...

this is very true for the investor who does not put interest earned to work.
if you seek out opportunity for each interest received at the same rate of 11.2%
you will end up with 21m at the end of 7 years
the game is all about compounding

yrs rate P int p+t
1 11.2% 10,000,000.00 1,120,000.00 11,120,000.00
2 11.2% 11,120,000.00 1,245,440.00 12,365,440.00
3 11.2% 12,365,440.00 1,384,929.28 13,750,369.28
4 11.2% 13,750,369.28 1,540,041.36 15,290,410.64
5 11.2% 15,290,410.64 1,712,525.99 17,002,936.63
6 11.2% 17,002,936.63 1,904,328.90 18,907,265.53
7 11.2% 18,907,265.53 2,117,613.74 21,024,879.27

8 Likes 1 Share

Re: Treasury Bills In Nigeria by Hamthablow(m): 9:53pm On May 24, 2020
sagio09:

I can help you to invest in FGN SUKUK. dm me ur mail.

I have interest pls hamthablow007@yahoo.com
Re: Treasury Bills In Nigeria by oluwaleokey: 9:55pm On May 24, 2020
chelseamann:
I must confess this is the best thread in this website.
Learning new things everyday..this my small change I have must surely grow soon.
Amen
As in eh...
See me nah...
Recently, I have been jejely following... its worth it, see me now dey watch channels 10 O'clock news including the stock market news, honestly i no dey understand anything but i keep listening,

somehow somehow we go dey learn small small ... just few days ago, i figured out that on this thread that BDC meant Bureau De change cool

17 Likes 1 Share

Re: Treasury Bills In Nigeria by zamirikpo(m): 9:56pm On May 24, 2020
ahiboilandgas:
they have refuse to announce a pump price only ex depot 108 ....4 week now

are depots really selling at that price. I don't think so, product still lands at 117/litre.

1 Like

Re: Treasury Bills In Nigeria by lancee(m): 10:02pm On May 24, 2020
MTN Nigeria Communications Plc announces N100 billion commercial paper issuance
MTN Nigeria notified the public of it proposed Commercial Paper Issuance under its N100 billion Commercial Paper

MTN Nigeria Communications Plc has notified the public of it’s proposed Commercial Paper Issuance (series 1 & 2 commercial paper issuance N50billion each) under its N100 billion Commercial Paper (“CP”) Issuance Programme.

The proceeds from the CP issuance will be used to support MTN Nigeria’s working capital and general corporate purposes. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market.

UBA ADS
Highlights of the report are as follows:

Arranger: Chapel Hill Denham Advisory Limited

Minimum subscription: N5 million

GTBank 728 x 90
Issuance size: N100 billion (series 1 & 2 commercial paper issuance N50billion each)

Tax consideration: Free and clear of withholding Taxes



MTNN is the leading telecommunications operator in the largest telecoms market in Africa. The company is the largest mobile operator and undisputed market leader in Nigeria, as measured by total mobile subscribers (c. 70 million), active data users (c. 26.8 million), revenue (almost 50% of industry), and profit pool.









"
Re: Treasury Bills In Nigeria by youngalex(m): 10:02pm On May 24, 2020
Akerewe:
Good day my people, please how do I go about this sukuk bond and is it possible to terminate sukuk before maturity?
The only issue I have in this Sukuk bond is that the regime collecting the bond is not the one that will pay in Maturity considering the uncertainty in our political landscape

7 Likes

Re: Treasury Bills In Nigeria by olujaidi: 10:13pm On May 24, 2020
X21:


this is very true for the investor who does not put interest earned to work.
if you seek out opportunity for each interest received at the same rate of 11.2%
you will end up with 21m at the end of 7 years
the game is all about compounding

yrs rate P int p+t
1 11.2% 10,000,000.00 1,120,000.00 11,120,000.00
2 11.2% 11,120,000.00 1,245,440.00 12,365,440.00
3 11.2% 12,365,440.00 1,384,929.28 13,750,369.28
4 11.2% 13,750,369.28 1,540,041.36 15,290,410.64
5 11.2% 15,290,410.64 1,712,525.99 17,002,936.63
6 11.2% 17,002,936.63 1,904,328.90 18,907,265.53
7 11.2% 18,907,265.53 2,117,613.74 21,024,879.27

I'm not sure this is entirely accurate. You're not getting your 10m back at the end of each year, you're getting it at the end of the seventh year. So it's not possible to add the rental to the principal. You can only invest the rental

Your calculation also assumes that you're receiving the rental at the beginning which isn't so. It's received every half year for seven years.

15 Likes

Re: Treasury Bills In Nigeria by X21: 10:33pm On May 24, 2020
olujaidi:


I'm not sure this is entirely accurate. You're not getting your 10m back at the end of each year, you're getting it at the end of the seventh year. So it's not possible to add the rental to the principal. You can only invest the rental

Your calculation also assumes that you're receiving the rental at the beginning which isn't so. It's received every half year for seven years.

10m is fixed for 7 years
interest at the end of every 12 months is added to it. and reinvested at the beginning of every 12 months
it will even be higher if you build in that half of the yearly interest will be received 6 months earlier

3 Likes

Re: Treasury Bills In Nigeria by Enyinne(f): 10:39pm On May 24, 2020
Oga , are u saying if I hv $5000 as at 2015 , I will leave it in my account without investing in some dollar instrument maybe like euro bond that yields 8% per annum .$5000 of 2015 if its was invested will be more in value than 1m @ 18% invested same period
Tobex4realTobex234:


This is false Sir. What exchange rate are you using for USD/NGN?

If you bought $5000 in 2015, you still have $5,000 now
If you invested 1m at 18%, you should have 2.28m now (that's $6000 at 380).. ($5300 at 430)... ($5000 at 457)

So how is it worth more? Which rate are you using Sir?

3 Likes

Re: Treasury Bills In Nigeria by Nobody: 10:45pm On May 24, 2020
Enyinne:
Oga , are u saying if I hv $5000 as at 2015 , I will leave it in my account without investing in some dollar instrument maybe like euro bond that yields 8% per annum .$5000 of 2015 if its was invested will be more in value than 1m @ 18% invested same period

Hello Enyinne,
Would you please suggest how to invest dollar in Naija?
Re: Treasury Bills In Nigeria by feelamong(m): 10:53pm On May 24, 2020
Sholapey:
Where is Mr. Feelamong? God's protection over you wherever you are in Jesus mighty name. Stay safe sir!

Thanks for asking after me....

Been very busy on some other projects in the investment world...

Been very hard to keep up with the discussions here...most especially now that rates are quite low and discussions have gone beyond Treasury bills.

Stay Safe guys!!

Shalom!!

27 Likes

Re: Treasury Bills In Nigeria by onegig(m): 11:03pm On May 24, 2020
ahiboilandgas:
If u invest 10m now u will get about 18m in 7 years time if naira is now 520 in 2027 u will get 34000 dollars dollars ....an investment of 25000 dollars now your profit is 9000 dollars over 7 years .......just over 100 dollars profit per months.....if u have any thing that can give u better than 120 dollars on a investment of 25000 dollars is better than the bond...

I have always been of the opinion that investment in bonds for people with "limited funds" is actually not a too good position to take up if profit making is actually your aim. Most of these bonds currently are hedges against inflation.

Yeah, I understand your risk aversion and thoughts on preservation of your funds but you would be better off investing the money into something that can give you 20% year on year. That's a personal opinion by the way.

Inflation is likely going to be stable and may drop to a single digit in the next 2 to 3 years if current efforts to make major imports like Milk, PMS and rice are successfully substituted by local supplies.

I still don't have a clear idea about how Dangote Refinery would operate. What pricing module would be employed? Sell at international rates or have a local crude swap deal to have "sort of subsidized" prices?

But notwithstanding the options they take would have major impacts on inflation.

1 Like

Re: Treasury Bills In Nigeria by Alaska90(m): 11:25pm On May 24, 2020
youngalex:

The only issue I have in this Sukuk bond is that the regime collecting the bond is not the one that will pay in Maturity considering the uncertainty in our political landscape

Please can you explain....I thought the banks are collecting the money on behalf of the FGN now?
Re: Treasury Bills In Nigeria by Nobody: 11:43pm On May 24, 2020
feelamong:


Thanks for asking after me....

Been very busy on some other projects in the investment world...

Been very hard to keep up with the discussions here...most especially now that rates are quite low and discussions have gone beyond Treasury bills.

Stay Safe guys!!

Shalom!!
Good to hear from you sir! We wish you best of luck in all your future endeavors pls keep in touch with us.

6 Likes

Re: Treasury Bills In Nigeria by olujaidi: 11:46pm On May 24, 2020
X21:


10m is fixed for 7 years
interest at the end of every 12 months is added to it. and reinvested at the beginning of every 12 months
it will even be higher if you build in that half of the yearly interest will be received 6 months earlier

I see what you mean. It's a feasible strategy using the secondary market. But the yield on the reinvested rental could be higher or lower depending on the value in the secondary market. This in turn will either enhance or dilute your overall yield
Re: Treasury Bills In Nigeria by Godbpraised: 11:49pm On May 24, 2020
What investment would give someone 20%?
onegig:


I have always been of the opinion that investment in bonds for people with "limited funds" is actually not a too good position to take up if profit making is actually your aim. Most of these bonds currently are hedges against inflation.

Yeah, I understand your risk aversion and thoughts on preservation of your funds but you would be better off investing the money into something that can give you 20% year on year. That's a personal opinion by the way.

Inflation is likely going to be stable and may drop to a single digit in the next 2 to 3 years if current efforts to make major imports like Milk, PMS and rice are successfully substituted by local supplies.

I still don't have a clear idea about how Dangote Refinery would operate. What pricing module would be employed? Sell at international rates or have a local crude swap deal to have "sort of subsidized" prices?

But notwithstanding the options they take would have major impacts on inflation.

1 Like

Re: Treasury Bills In Nigeria by Tobex4realTobex234(m): 12:15am On May 25, 2020
Enyinne:
Oga , are u saying if I hv $5000 as at 2015 , I will leave it in my account without investing in some dollar instrument maybe like euro bond that yields 8% per annum .$5000 of 2015 if its was invested will be more in value than 1m @ 18% invested same period

Please read to understand, not just to respond. Did you read the OgogoroFreak message that I quoted? He said leaving your money strictly in USD would have been better.

Based on your Eurobonds investment of 8% annual though, you should be cashing out around $7,000.

But in all honesty, not so impressive. NGN had to depreciate by 100%+ for USD investments to be more significant. For a speculative instrument, it's not worth it. The best-case scenario for me would be to diversify: 60% naira, 40% USD.

Note: This is a personal preference.

2 Likes

Re: Treasury Bills In Nigeria by Nobody: 12:48am On May 25, 2020
"If you consistently surround yourself with winners, winning would become the only option in all your endeavors.” “Don't be afraid or too arrogant to surround yourself with people who are doing much better than you, because they could definitely push and stretch you to discover your hidden abilities in life.”

38 Likes 5 Shares

Re: Treasury Bills In Nigeria by Godbpraised: 2:46am On May 25, 2020
True word
Sholapey:
"If you consistently surround yourself with winners, winning would become the only option in all your endeavors.” “Don't be afraid or too arrogant to surround yourself with people who are doing much better than you, because they could definitely push and stretch you to discover your hidden abilities in life.”

1 Like

Re: Treasury Bills In Nigeria by dipoolowoo: 5:22am On May 25, 2020

3 Likes

Re: Treasury Bills In Nigeria by GonFreecss1: 7:17am On May 25, 2020
Grupo:


My dirty mind read the bolded differently. grin

A beautiful mind still! grin

1 Like 1 Share

Re: Treasury Bills In Nigeria by GonFreecss1: 7:25am On May 25, 2020
Salliet:


Thanks I know the rates are annualized. However, I need someone who has run the investment for sometime successfully or not to give an honest review or feedback on lessons learned.

Beware of investments not regulated by the SEC. No difference between this and the agro-tech investments popping up now.

1 Like

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