arena07: Oga keep quiet eventhough the way the guy convenes his message may look entitled but i understood his message. .which is don't promise what you know you can not do or fulfilled. He has now turned to kidnapper?baba I think he is right about the kaikai drink looking at your comments
This is another reason why it is good to have some passive income. It cushions many of these economic shocks. Some people will not even notice if petrol went to N500 a litre.
While one gets/accepts the message of the comparison, the N17m (10+7) is achieved at a compounded interest rate of 17.5% as shown below. But as Laura and Ukay2 have already mentioned, the rent invested over the 20 yr period can probably achieve more than 17.5%.
Biafran4life: Oga i don't get how 10% of 300k at compounded interest will give 17 million in 20 yrs..If I am not wrong the first yr will be just 30k,then 33k,36300,42930k etc.Pls can you show the calculation
Meanwhile the bond market is beginning to look interesting as shown below with yesterday's closing prices and yields . As expected yields have been rising all year. Even the yields on the 7 year maturity will soon surpass the 11.25% Sukuk. I expect yields to continue to rise over the coming months and consequently expect TBill rates to continue to rise.
Thank you for the below. I most certainly concur!! A million LIKES!!!
jedisco: First, things were not ok during Abacha... There was a link I posted above... It explains quite well the history of our currency and what really happened during Abacha's time. Fact is that over the past 40 years, the only time the naira saw sustained appreciation and stability against the dollar coincided with a period when everyone could access same dollar rate (and also high oil prices)
Whether we care about the black market or not doesn't matter. Fact is that it has a huge impact on you. Virtually every item you buy in the market is affected by the black market rate. I can't think of any item not affected.. Even locally produced food. Economies work as an interconnected unit and not as individual parts.
Talking about limiting items that can access forex, for the past 20 years we've been doing that, the very few items such as cement we've sustained self sufficiency in was not because of forex limitation... So why do we keep repeating it? There are sensible ways to stimulate local production without hurting the economy.
In summary, all I'm saying is that everyone should have access to thesame forex rate.
Lets hope the madness (multiple divergent fx rates) ends very soon
jedisco: What people don't understand that fixing an exchange rate is easy. Defending it is the hard part. If it was all about the CBN deciding what the exchange rate would be, every country will fix their exchange rate and go to sleep. Those folks you mentioned were able to sustain the rate they fixed by deploying foriegn reserves and earnings and made whatever rate they fixed largely available for all. Not allow a way to create billions out of thin air. Personally, I don't believe using scarce forex to continuously defend a currency is ideal, but you can do that when you have the reserves or inflow. You could read Sanusi's interview with the Financial times on this matter.
Hope you know that most of our imported petrol is based on crude oil swaps and not bought outrightly? We're not the first to introduce some of these measures. . Lebanon did exactly same thing. Their central bank even created an exchange portal and promised huge interests for those who sent forex in.. We know how that ended
Talking about sound minds in our economic team...lol... Look around you and see the result. If not that IMF insisted, Our sound minds were ready to take a dollar loan that would have been wasted on subsidizing thesame dollar.
No need going back and forth... They should keep giving folks 20% discount on the dollar. Indigenous companies that struggled to make profit are now guaranteed 20% in days if they know who to bribe. More and more people are learning ways around it and some are already making a killing. Soon enough, we'd see where it leads
Whilst we are on the subject of retirement, some may opt to retire to Sea. Its a big and fascinating world out there more of which I wish to explore at retirement. Frankly I am considering it...
ositadima1: I actually used 8.5% in my computation, if u want to reproduce it sha.
At 4m in d first year, 8.5%(for consistancy) inflation and 100m starting seed with compounding 10% interest. The couple will get broke 34 years after.
For 25 years with same factors as above, the couple would need to set aside 78m. Like u said after d 25 years they are on their own.
Regarding what dey need d money for, u know that some people have expensive hobbies right? Also, some people may like to use this time of their lives traveling around the world (At 60 some people are still pretty good physically).
Know that oyigbo mans life style and ours will start converging as time goes on. Senior citizens will not just simply eat and wither away like they used to.
Nigeria may start having old peoples homes and it will not come cheap. I dont think our government will subsidize such houses like it is done in oyigbo countries.
Would anyone want to guess what the price of PMS would be when Dangote's refinery comes on-stream?
ahiboilandgas: it actually succeeded in cement but at a horrible cost ...cements now costly 3300 and unaffordable but available ....in the 90s their used to be cements racket in govt owned plant ....u can sell your allocations and collect rent sharp sharp if u know a big man in Nigeria ....but now we have reach capacity and no scarcity but unaffordable..and they are during same for sugar gradually
.....but it very unfair ....obj was convinced by the group of tony elemelu dangote,otedola and other s that that the south Korean and Singaporean models....few big players
Well, if the reserve fx application to refined petroleum products is true and if the refinery does come on-stream in due course, one may expect the Naira to appreciate in the future. However, in my 50 years, I have found Nigeria defies logic. Thus not holding my breath. Besides sometimes you are told our crude is swapped for imported refined products with international oil companies (IOCs) and if that has truly been the case our reserves should never have been challenged. So you have to wonder what truly has our fx reserves been spent on all these years (perhaps pilfered)? Nevertheless, I do hope I am wrong and that on this occasion, Nigeria will be able to see an ongoing accretion to our fx reserves and exchange rate. I am all for a strong Naira but the reality is a strong Naira has eluded us for decades. As an aside Nigeria has four refineries that has not been allowed to function or function optimally and provide benefits to Nigerians or our fx reserves for decades but now the government and CBN wants us to believe the way to preserve our fx reserves is Dangote's refinery? and yet we have refineries!!!
Emndy: Emefiele made the disclosure on Saturday during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline projects at Ibeju Lekki, Lagos.
The CBN governor noted that the 15 billion dollar projects being constructed by the Dangote Group would save Nigeria from expending about 41 per cent of its foreign exchange on importation of petroleum products.
Emefiele said: ”Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira.
“That is the element where foreign exchange is saved for the country becomes very clear.
“We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated.
“This will make the price of our petroleum products cheaper in naira.
“If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.
“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency,” Emefiele said.
Emefiele expressed optimism that the refinery would be completed by the first quarter of 2022, adding that this would put an end to the issue of petrol subsidy in the country.
“I am saying that by this time next year, our cost of import of petroleum products for petrochemicals or fertiliser will be able to save that which will save Nigeria’s reserve
Question: What are your thoughts regarding this w.r.t the naira in the medium term
emmanuelewumi: We learn everyday, if it is too good to be true then it can't be true.
I don't know who is more greedy between the banks and Nigerians looking for 15% per month upandan
I remember how they attacked Ahib for opening a thread, where he advised them on the dangers of Investing in the likes of MBA forex, Bara and other Ponzi schemes.
They didn't listen because of their greed, selfishness and quest for money at the speed of lightning.
He who comes to equity, should come with clean hands. Some of us do worst things to the so called poor Nigerians in our private life and businesses, but will come online that they are defending them.
Lazyyouth4u: Naira is c.10 to 20% overvalued and a correction is expected later this year. Many people are holding off as they expect further devaluation at some point this year.
I’m not a guru in the house. Just a lazyyouth story book reader so I don’t expect that you will take me seriously
Lazyyouth4u: To leave and go and invest where sir?
Look at the marginal rates (not coupon rates). There is nothing spectacular about those rates. The slight increase compared to last auction was because demand was lower this time. Investors are anticipating an increase in rates and have chosen to just wait it out instead of tying themselves to these low rates on bonds they won’t even be able to sell at a good price when rates increase.
I am approaching retirement and I still prefer the first option.
Lazyyouth4u: Haha. Okay I will say it depends on my age. As a younger person that can better handle investment stress or can afford to start afresh if I lose the money, I go with option A.
If I’m an older person in or approaching retirement, I go with option B. I don’t need investment stress at that age
Blinkers are off many thanks. I prefer to simply watch how this party unfolds over the coming years.
afroxyz: You need to take the blinkers off. SEC (US not Nigeria) has already hinted on a bitcoin ETF to be launched this year. US govt is even requiring people to decalre their crypro assets in their IRS forms. Meaning they want to tax capital gains from crypto trading. You think US is Nigeria that ban things without thinking it through.
abeg na TB thread be this, we can continue the xinversation on the appropriate thread
Do not confuse a financial institution choosing the safe option of earning fees by being a custodian of crypto currencies while the party is on with meaning they will not be banned in future by all central banks. When they become banned, the likes of BNY Mellon, Paypal & Mastercard will loose nothing. Holders of crypto currencies will be the losers (big time). Be warned.
Sailor1: First Square, then PayPal now MasterCard on board. Visa (a one-time antagonist) rushing in too... The direction of travel is clear.
I will stick my neck out and predict that all cryptocurrencies will be banned by all central banks globally within 5 years. They are all currently preoccupied with financing/managing the economic repercussions/fallout on their respective economies from the current global health crises. The ECB has already fired the first warning shot here https://www.coindesk.com/ecbs-christine-lagarde-says-speculative-bitcoin-needs-regulation
Not long to wait to find out - 5 years in global economic finance is quite short.
Leezah: They maybe confused but with time they will come around.
Banks hate Crypto Employer hate Remote jobs Hotelier hate Airbnb
Investment › Re: Treasury Bills In Nigeria by skydiver01: 8:45pm On Mar 21, 2021
