₦airaland Forum

My response above is in line with the response you have received from the bank. The bond matures in Feb 2028. I assumed the N1.5m included accrued interest from August last year. The next six months interest payment occurs next month (23 Feb 2022). The repayment of principal (face value) is paid on 23 Feb 2028. There is no principal repayment before this date if held to maturity.

Akerewe:
But from the analysis sent to me, this coupon will still be paid by 2028 feb+Aug and also repayment of the principal. How could the principal repayment b Feb according to ur explanation nd the coupon be extended to August?

Principal repayment (face value) in Feb 2028 is ~N1,221,621.02 (you bought at a premium - N118) and total interest earned over 6 years is ~N1,024,695.71 + accrued interest since August 2021 of ~N85,391.31 which will be paid next month.

[quote author=Akerewe post=109103195][/quote]

The info you require is in the table below to 31 December 2021.

Akerewe:
Below is their response as regards the coupon rate

An apt caption.

I think most of the Tbill purchases are from people, companies, financial institutions or MDAs that have approved (currently idle but committed) funds for capital expenditures and payment to vendors over the next 12 months. So, technically their hands are tied. Thus, even if TBills rates fall to 1% they have to buy TBills (or fix the funds in comparative fixed deposit accounts) to generate some income from the idles funds. Conversely, even if multi-year FGN bond yields hit 25%, they are also unable to buy these bonds with the idle funds because of potential loses if sold before maturity as well as large transaction costs from the spreads on the secondary markets. This situation is one I have seen so many times over the last 2 decades. Someone here recently said that we can't know it all. That is why, whilst it is always a good idea to ask questions, it is equally important to keep an open mind to answers received or suggestions provided.

I mentioned last year that it would be wonderful if the use of insulting languages and words are avoided with the exception of sarcasm and jokes (laughter is good for the soul), so we can continue to learn from everyone's contribution. It is equally important not to make false accusations of anyone you have not met. When falsely accused, some people will turn the other cheek (which I recommend) whilst others will not which is equally their right. I think the events/posts of the last few days demonstrates this.

Life is indeed a lifelong learning journey and I do hope we can continue to learn from everyone's contribution.

emmanuelewumi:
Can't believe people are still buying 365 days Treasury Bill at 5%.

Afrinvest packaged a commercial paper for a major player in commodity trading at 16% per annum

Yields have an inverse relationship with bond prices. When the yields fell, bond prices rose materially over the period referenced. The yield of the bond was not 60%, the capital appreciation of the bond was. You can check FGN bond closing mid prices daily on FMDQ as well as TBills on the secondary market. https://www.fmdqgroup.com/fmdq-exchange/market-information-data/

creategist:
Please are yields actually able to return up to 60% on FGN bonds? Please pardon my ignorance but it sounds so much! And could you kindly point me in the direction of the portal or site through which you monitor these fluctuations in yields of same bonds. Thanks for this piece of education.

Good questions below being that time of year one reflects on the year and perhaps make new or adjusted plans for the future.
Re: investments, my responses below would most certainly be boring.

emmanuelewumi:
What are our investment mistakes in 2021?

Perhaps not selling some FGN bonds (2034) when yields hit record lows between November 2020 and February 2021 for about 60% profit. This unrealised profit could have been used to buy more in the following months after yields rose again later in the year. But not complaining - still proceeded to compound the coupons.

What are the Investments and businesses that gave us the best returns in 2021?

As was done in prior years, buying more equity with dividends and more FGN bonds with coupons which have been increasing their yields annually. But I would add that by far the greatest return from 2020 to 2021 were FX & FX equity holdings (e.g. Tesla, Nvidia, Chevron, Exxon etc).

What are our investment plans for 2022?

For 2022, though pleased with the diversified portfolio, one may explore selling a real estate property (Abuja) to reduce tenancy stress and perhaps increase the dividend equity holdings, FGN bonds or FX. Will decide in Q1 2022.

2022 also being a year before the elections, increased perceived investment risk may be given to Nigeria which may present opportunities to invest at lower levels which will be good if one continues to take a long-term view. Well, its not long to find out.

Wishing us all an excellent 2022 and beyond.

Totally agree. I assume you meant 'should not be more than 50%' of your networth.

emmanuelewumi:
You take loans when you see opportunities, the debt should be more than 50% of your Networth and you have enough passive income to liquidate the debts at the shortest possible time of about 2 years

Sure. But it also depends on what you want out of life. My debt taking days are over at 50+. Took lots of debt in the past (all paid back) to grow the size of ones investments just as profitable and well managed institutions have done since time immemorial.

emmanuelewumi:
Do you agree with him?

It is not a stupid idea since expected coupons/dividends etc more than covers the short-term interest.

Personally, I am giving this Sukuk a miss at this time and will simply wait for Jan and March 2022 to do my compounding with purchases from the secondary market. Besides, I already have bonds maturing in c14 years (July 2034) that already yield 13+% per annum.

emmanuelewumi:
Even this 12.8% Sukuk, I used my fund and also got a loan at 22% to add to my fund and Invest in Sukuk 4

Some might think that was stupid. The loan is a 6 months loan, although I will be able to liquidate it by April 2022 because dividends and coupons are expected to be paid between February and March.

At 22% per annum, interest to be paid in 4 months is about 7.3% and I will earn 12.8% for the next 10 years

Yes the charges are normal though sometimes you may be given a discount which is usually volume dependent.

Akerewe:
12.40% FGN MAR 2036 (FG132036S2) at a clean price of 101 and Dirty price of N104.23

I just want to know if the charges are normal! Yes it's les than 1%. I actually got 1.5m worth of bond then

You can purchase them from the secondary market daily (excluding weekends and public holidays). I think N100k minimum. Your bank or broker can process this for you.

Ojix85:
Can you kindly advise how one can purchase FG Bonds without having the 50m capital? (Retail purchase)

Thanks.

Seasons greetings.

For those of us holding FGN bonds which have been more attractive than NTBs for quite sometime now and still is, don't forget that January and March 2022 is round the corner. This is a subtle reminder to compound then if expenses allow.

Wishing us all a wonderful festive season.

skydiver01:
Kindly find below todays NTB auction results.

Kindly find below todays NTB auction results.

Lovelynife:
dobnina you don buy am ooo. See how frustrated people don dey react on top your matter. It is well ooo

Kindly find below todays NTB auction results.

They are the same in that they are both FGN bonds with these two individual qualities:

1. FGN Savings Bonds are issued for two and three year durations on subscription and the interest is paid quarterly.
2. FGN Bonds offer a cocktail of durations up to 30 years and the interest is paid semi-annually.

Re: ROI - you will find that the yields are typically higher the longer the bond duration is and vice-versa.

Akerewe:
Pls house, what is the difference between FGN BOND & SAVINGS BOND ?? Nd which one is better in term of ROI

Kindly find below results of todays NTB auction.

I agree with you and your suggestions 2,000,000% not just 100%.

ultron12345:
I support you on the neccesity of capital punishment in Nigeria that is enforced. However, it is not so appropriate for less heinious crimes like jumping queues and littering.

For such crimes,i would recommend corporal punishment. "Judicial Flogging".

All those miscreants who jump queues, litter, request for bribes to do their jobs, bypass meters, disobey traffic rules, vandalize public property (just minor ones oo, major vandalization such as pipelines, transformers and those people that steal manhole covers in Lagos should warrant capital punishment) should be apprehended, charged to a specialized mobile court on the same day, that would sentence them immediately. That evening or the next morning, they should be brought to the town center and in the full glare of the public, be given between 40 and 150 HOT lashes.

Singapore has a form of this corporal punishment and it is working wonders.

For Nigerians, it will be more effective as a deterrent than say, fines, and cheaper for the government to enforce than prison terms where they have to spend scare resources that should go into things like education and healthcare of good law-abiding citizens, on providing free food and shelter for criminals.

It also reduces economic losses. Instead of Mr A been sent to prison for 6 months, where the government will pay so much to feed, shelter and take care of him, while 6 months of Mr A's economic output and productivity is lost to the nation, he should instead undergo judicial flogging where he is given like 120 lashes. It is cheaper on the government's part, it serves as a better deterrent against crime for the population, and instead of loosing Mr. A's 6 months of economic productivity if sent to prison, the nation looses just like 2wks to one month, been the period of recovery from the brutal flogging.

And putting such laws and punishments in place is one thing. They should also be enforced. One of the reasons for crime and corruption in Nigeria today is because there are no consequences, and on the rare cases where there are consequences, they are just a tap on the wrist. Take for example, Evans the kidnapper, apprehended so many years ago, yet till today, has not been convicted. With all the media coverage his case got back then, imagine the strong message it would have sent to potential criminals if he was executed on national TV few weeks after.

This lack of consequences is also telling in our prison numbers. With all the numerous crimes and killings everyday in Nigeria, we still have one of the lowest incarceration rates in the world. It means criminals are not getting punished. At 65K prisoners (with more than half yet to be tried, so the actual figure should be around 30K), it means Nigeria has a paltry 32 prisoners per 100,000 population. Our relatively peaceful African neighbors like Cameroon, Ivory Coast, Benin have 125, 83 and 70 prisoners per 100,000. Rwanda despite having a population over 23 times less than Nigeria's, has a prison population equal to Nigeria. It has 511 prisoners per 100K. The US is at 640. Even super safe and peaceful countries like Australia, New Zealand, Singapore, Switzerland are at 160, 188, 185 and 80 respectively.

Is it that Nigerians don't commit crime, no. It's that those that commit crimes are not been punished, which in turn, encourages further crime, hence our situation today.

All this must change.

You can say that again. Looooool but incredibly true and apt

Tranquility2345:
Please how old are you? Are you sure you are a grown man? Your mates are making productive comments and see how you are going off like a wild dog on heat. It’s not your fault. It is Seun and his mods that let uncouth people like you get away with such none sense.

Reminder 1: We were discussing ways of eradicating the endemic corruption in Nigeria that has prevented the country developing over many decades.

Reminder 2: The reality of the scale of the corruption problem is that most Nigerians in leadership positions e.g. National Assembly members, House of Rep members, Governors, Public and Private sector management and employees, the justice system, law enforcement, presidents, the CBN etc etc are corrupt. And your suggestion is that those in leadership positions who also have corruption in their veins should start by getting macroeconomic policies right?

Therefore, you are saying we have not had any right macroeconomic policies e.g. since 1960 and this is the reason corruption over decades have become endemic in Nigeria. Oh lest I forget, the populace has also not pressured those in leadership positions to implement these non-existent macroeconomic policies.

I am indeed dumbfounded and speechless and will make no further comments on this topic.

jedisco:
If the death penalty for those serious crimes has not been implemented, why do you think a death penalty for less serious crimes would be implemented? To change such laws, it has to go thru the National Assembly, president would sign and law enforcement and others would do their work. In any jurisdiction, it takes years to secure a death penalty. Imagine the courts flooded with trival cases years on end....

I'm trying to be practical here....

To your questions, my initial answe was simple. Those in leadership should start by getting some macroeconomic policies right. The populace should be able to pressurise them on that. We've seen that work with some erroneous CBN policies in the past

Claiming Saint? and Nl Cia posts that have ever been posted by me?

You are clearly either an "nonentity " or you are confusing me with someone else.

Kindly reproduce any posts I have made in the past to support your accusation. If you are unable to produce this, then I suggest you improve your manners and desist from using derogatory words in your posts going forward. My suggestion is for your own good and development.

XiaoLi:
See who is talking of insecurity and lack of manner,when you send a smiley emoji on a blackmailing or insulting comment..that says alot about you...if you are talking of bad manner maybe you need to go back and read your Nl cia or whatever you call it previous posts again...claiming saint..nonsense

Looooool but absolutely true.

Lazyyouth4u:
Dude stop wasting your time here. This place is full of audio dreamers posing as billionaires

We have the Uber drivers, fake wine sellers, Truck drivers, students, criminals, armed robbers, kidnappers, yahoo yahoo boys, security guards abroad claiming to be abroad investors in Naija, broke abroad people living on benefits but claiming billionaire status, those that have bungalow with two tenants in a village but claiming to be real estate moguls, small boys with tashere foreign stocks but claiming to be big time NYSE investors, fools trying to use Reddit copy and paste to play fellow fools, idiots claiming to be Bitcoin billionaires. We have them all here

Stop wasting your time bro. Nothing dey here. Find somewhere else to sell your hustle

jedisco:
Hehe.... Take it easy.... I know say u dey vex

Yes my brother, I don pass vex sef. Good morning.

Bottom line is that folks in the right position need to start making the right macroeconomic decisions.....

Many right decision have been made over many decades. Which ones have been successful because of corruption? For example, was the decision to support Internally Displaced People (IDPs) in the North East in March 2016 not a right decision as a result of the actions Boko Haram? It certainly was. Can you imagine the most recent Secretary to the Federal Government (Lawal Babachir) stole/diverted over N500m allocated to (IDPs) in the North East (under the guise of a grass cutting contract - see vanguard news link below)? Who in their right mind does that? Disgusting! He still has his freedom today because of a useless corrupt justice system of paid delayed trials. If this was China he would have been executed in 2016.

https://www.vanguardngr.com/2020/11/n554m-grass-cutting-scandal-efcc-re-arraigns-ex-sgf-babachir-lawal/

How about the over N400b unconditional cash transfer covid scheme in 2020 by the Federal Government via Ministry of Humanitarian Affairs to be paid to vulnerable Nigerians and SMEs because of the pandemic forced economic shutdown for several months? Was that not a good decision? Was it implemented as intended? No, because of corruption. Once again the money was diverted.

In a multicultural society like Nigeria, one does need tact to solve some issues.... The same corruption bedeviling the current system will not disappear overnight. Kidnapping, terrorism, armed robbery e.t.c carry a death penalty.... How much has it helped....

Has the death penalty for these kidnapping, terrorism etc etc been implemented? No! We should stop kidding ourselves Nigeria cannot move forward without all these penalties being implemented widely. However corruption has been getting in the way of their implementation. So I suggest we should start with implementation of capital punishment. I also do not expect corruption to disappear overnight. But I do want actions to be taken to eliminate it so we can move forward as a country. All the announced deemed good endless words and policies has yielded no results for decades because of corruption.

Btw, you did not answer the question below.

Finally, besides being for or against capital punishment (lets leave that to one side for the moment) can you suggest what will "certainly" change the behaviour of Nigerians and Nigeria for the better that has not be tried in the past? remembering of course that all those that have been tried in the past have failed.

In principle, I am not in favour of capital punishment... The main issue is corruption has been successfully addressed by other countries by its introduction and strict implementation which transformed theirs to developed nations. The world is well aware of this. Even the US was once the wild wild west. capital punishment was the order of the day and overtime it was phased out in some US states after civility became more prevalent. I am very happy to live in a country whose citizens respect law and order even with capital punishment for crimes committed.

Nigeria's corruption problem is so bad it has made fines and penalties for minor crimes, which has been the law here for decades, useless and has certainly not deterred their occurrences (minor crimes - infractions & misdemeanors) to date. By way of referred minor crime examples with large consequences... we have penalties for running red traffic lights. It has not deterred motorists from doing it frequently. consequences - avoidable accidents. we have penalties for having vehicles that have not been tested for road worthiness littering and driven on our roads. Have you seen the number of these on Nigerian roads? Shockingly high. Have you seen the alarming number of deaths caused by vehicles, trailers and tankers that should not be on our roads in the first place? corruption allows this to happen. Are you aware of the number of motorist that did not take a driving test but simply bought a driving licence in Nigeria? You should then not be surprised at the way motorists drive and the alarmingly high number of fatalities caused by this 'simple' acts of corruption (bribery).

Therefore, it is better to start by making capital punishment for all crimes and over time, after we begin to see improved public and private services, improved citizenry behaviour, reduced scams/theft, improved justice systems etc etc, then one can choose to phase out capital punishment or only apply it to the most serious of crimes (felonies) going forward. I frankly cannot see any other way to change Nigeria for the better because of how bad the situation has become. Nevertheless, I respect everyone opinion on this issue.

I am all in favour of any way Nigeria can change for the better. I only make the capital punishment suggestion because it has worked for other countries that had the same corruption problem and more importantly, all our existing rules and laws have been and continue to be flouted and all our policies for development have been disregarded and not implemented for many decades.

Finally, besides being for or against capital punishment (lets leave that to one side for the moment) can you suggest what will "certainly" change the behaviour of Nigerians and Nigeria for the better that has not be tried in the past? remembering of course that all those that have been tried in the past have failed.

jedisco:
You've raised some points...
I agree, alot can be done to cut corruption and channel it towards education so as to build capacity. That said, there should be a means of retaining some of the bright heads too or bringing them back after they've relocated as it takes years to build such capacity. Take a doctor or nurse for example. You're not going to replace them overnight... Even developed nations find it easier and cheaper to raid developing nations to fill up such roles than build capacity to train their citizens from scratch.

But I don't agree with capital punishment or excessive highhandedness for minor crimes. There are modern and reliable ways to deter people from social vices. Fines and even prison sentences more in turning the society around than death sentences.
Making traffic offenders pay fines and go through a retraining process or suspend their license will beuch more cheaper and effective than severe punishment.
You wouldn't want to live in a country that kills folks for skipping traffic lights.. If Nigeria kills her citizens lawfully for such, then that'd further degrade us in the eyes of the world.

Yes corruption is a major problem. Nigeria will get to the point when the masses will say enough is enough (I really do not know when. I hope soon). It has happened in many countries. Many political leaders in China were executed because the Chinese reached the point were they said enough is enough to corruption. In fact the death penalty for bribery or any corrupt act in China for all Chinese citizens is still currently in place and some other countries too. If 99% of our leaders are corrupt, that is not a reason the death penalty cannot be implemented. It would also apply to all Nigerians not just political leaders. This nation requires a clean out of bad leaders and citizens. For example, Ghana is where it is today because of the bold actions of Jerry Rawlings. In fact, you will be surprised that by simply introducing capital punishment for all crimes, current leaders and many citizens, even in the private sector, will not only change their behaviour but also start returning stolen funds to avoid being executed.

Nigeria will not develop without radical actions that have been successful in other countries that faced high levels of corruption in the past. Today, these countries are all developed nations.

Neverlosemoney:
Lol…Death Sentence to all offenses, Even for bypassing queues. Brutally said but it is the truth, it isn’t possible though cause if it is…99% of our leaders heads must roll. Corruption is really the cause of our Problem.

I absolutely agree with your first three paragraphs but not the fourth (bolded). Nigeria can build its human capital by redirecting stolen/pilferaged funds from education, health and infrastructure (roads, electricity etc) annual national budgets. Integration with foreign nationals has been among us in Nigeria since and before independence and Nigerians have by and large chosen a path of pilferage and corruption simply because of greed. This has also continued to increase the poverty rate of the masses over the last four or five decades.

This is what has led to our national development regressing perhaps 100 years. The quickest solution is to introduce capital punishment (death by immediate execution) for all crimes including simply running a red traffic light for a period of just 2 to 3 years and you will see that Nigerians will sit up and immediately choose to do what is right in all spheres of our society. Corruption and uncivilised behaviours by Nigerians e.g. budget padding, bribery, jumping queues, turning two lane roads into four lanes by impatient motorists, Government agency civil servants not providing services to the public until they are bribed etc etc will all disappear and then Nigeria will start to function and become a developed nation within a super short period of time. All Nigerians know the right things to do but most have been choosing the wrong things to do for decades because of their greed and rent seeking mentality (the desire to make disproportionate profits or illegitimate gains for not providing any product or service (scams/theft) or at best very substandard services and products - this also applies to public healthcare, education and all infrastructure).

You will be amazed that so many contractors have over many years been paid large sums by the government for capital projects such as hospital, roads etc etc and they all built none because the wheels of justice not only turns slowly in Nigeria but is in itself also corrupt. So these idiot contractors are living large out there with these cases in courts for years with no justice in sight while we end up having no good public hospitals, schools, roads, pipe borne water, electricity etc etc.

The introduction of capital punishment is what has made China and Singapore what it is today. I will go as far as including Dubai, other UAE countries and Saudi Arabia.

When even just 60% of every service that improves the quality of life for all Nigerians begin to work in Nigeria, no one will want to leave, the Naira will gain in value and Nigerians abroad will even choose to relocate back to Nigeria. The justice system will be reformed and capital punishment can then be phased out or simply applied to the most serious of crimes like in some states in the US.

I assure you Nigeria can work and develop. But it will not develop if Nigerians, who know the right things to do are not forced to do them.

The link below is a reminder that not so long ago, foreign students used to come to attend courses and programs at Nigerian Universities to attain Bachelor and Master degrees because of the quality of our education system. So, Nigeria can be made to work and work beautifully.

https://www.ui.edu.ng/internationalstudents

jedisco:
Although it's not always black and white, I side more with this being a form of colonialism. Nigeria can barely build her human capital, whereas, richer nations come and seive the best.... This can be only turned around by having some form of reintegration.

You are welcome.

yinkaoke:
God bless @Skydiver01

Kindly find the results below.

yinkaoke:
Goodday great people. Anyone with last tbills auction results please?

certainly one with a huge reservoir of sarcasm

emmanuelewumi:
Please don't be offended for this innocent question.

Did you buy the last Treasury Bill? Who did you buy from? Do you have the email of your account or relationship manager?




Your account officer or relationship manager is in a better position to give you the answer you are asking for, shoot them a mail or give a phone call.

Selfish/self centered people (elites, politicians or whatever) that take steps or make decisions to lengthen/delay the timelines of developments that can enhance the quality of life for all is truly disappointing. Nevertheless, I agree with two points you made below (bolded).

LordAdam16:
True. It has started. However, the entire Western hemisphere is unlikely to have fully-automated societies with low-skilled natives paid to exist and consume before 2100. Futurism projections have to be modest, otherwise they can turn out to be way off.

To illustrate, it took us 120 years to go back to electric cars. It'd most likely take us at least 60 years to return to the moon.

Progress doesn't always occur logarithmically. Unforeseen setbacks, like another East-West Cold War, can reset the clock by several decades. Not to mention there are anthropological concerns with making a systemwide switch; such that even when technology advances to the point where it becomes feasible, the plutocrats will delay implementation until the time is right.

Poor timing and/or shabby implementation can result in widespread unrest, spike in drug usage and vices (idle minds can be particularly destructive), amidst other unpleasant consequences.

For instance, there are enough minerals in the asteroid belt (between Mars and Jupiter) to give each human on the planet over $100b and current technology is advanced enough to refine space mining within the next two decades to make extraction feasible. However, the elite isn't in a hurry to green light that for obvious reasons. Likewise with global food production, as a species, we have the means to affordably feed everybody on the planet employing no more than 5% of the global population but the economic system we practice globally does not allow that and the displacement could be catastrophic if done abruptly.

Not to mention, handing a restless demography free stuff for life isn't exactly a panacea. Humans are notoriously insatiable.

-Lord