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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4610970 Views)
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 Chillis: 12:07pm On Aug 21, 2015 |
ukay2: Before you move your funds, try and compare the basics. Most of these investment houses have their own %. I think 0.05% or so and how long you will be investing. By the time, you move your funds, charges , tax etc... will you be on the positive or negative? Sometimes, Most banks their secondary markets are even better than the primary. I know I got a better offer from the last secondary market than if I were to take the primary option. |
Re: Treasury Bills In Nigeria by unite4real: 12:09pm On Aug 21, 2015 |
feelamong: I just called Kakawa and i was told the minimum amount i must have for them to do deal with me on the primary market is 5 Million Naira. Can you please recommend the investment house that you use. |
Re: Treasury Bills In Nigeria by unite4real: 12:11pm On Aug 21, 2015 |
Chillis: my very thought. |
Re: Treasury Bills In Nigeria by ukay2: 12:14pm On Aug 21, 2015 |
Chillis: OK. I want 365 days NTB come September 3rd... what of the access bank shares question I asked.? thanks |
Re: Treasury Bills In Nigeria by Chillis: 12:20pm On Aug 21, 2015 |
ukay2: I wouldn't buy any nigerian shares. That's just me. Either I invest in TB until I'm sure of some other profitable biz or real estate investment to do. Nigerian shares only the inner cabals know when to reap profit off people. That's just me sha. |
Re: Treasury Bills In Nigeria by feelamong(m): 12:23pm On Aug 21, 2015 |
ukay2: i have used them for most of my investments in stocks and TBills... the custodian fee has been set by CBN..its 0.1% of the face value of the transaction (based on no of days) i bought Access bank shares today.... its purely a speculative bet! |
Re: Treasury Bills In Nigeria by princeuk21(m): 12:26pm On Aug 21, 2015 |
unite4real:u sure?? ?? |
Re: Treasury Bills In Nigeria by princeuk21(m): 12:28pm On Aug 21, 2015 |
unite4real:case closed. thank you ![]() |
Re: Treasury Bills In Nigeria by ukay2: 12:39pm On Aug 21, 2015 |
feelamong: @ oga feelamong, at what price do you buy the access bank shares today.? |
Re: Treasury Bills In Nigeria by princeuk21(m): 12:39pm On Aug 21, 2015 |
Royal155:thank you my brother. This is the right answer, direct to the point. |
Re: Treasury Bills In Nigeria by Nobody: 12:49pm On Aug 21, 2015 |
unite4real:Trial will convince you, not copy and paste |
Re: Treasury Bills In Nigeria by quertyquack: 12:58pm On Aug 21, 2015 |
I meant you have big capital. Thanks for the information though. I'll explore this option as soon as I can get the funds I need. A big point you have made is investing with firms that have your interest at heart. That's a tough find bro! They all seem to care about their bottom line only. feelamong: |
Re: Treasury Bills In Nigeria by quertyquack: 1:03pm On Aug 21, 2015 |
I know you didn't ask me and perhaps I should be minding my own business. However, investment decisions are best made after a lot of PERSONAL investigation. Don't bank on what someone says. Train your instincts, you'd be better for it. ukay2: |
Re: Treasury Bills In Nigeria by ukay2: 1:07pm On Aug 21, 2015 |
quertyquack: thanks my oga... you are very correct....also I want to learn from those that have gone a head of me ...your advise is highly welcomed. thanks once again. |
Re: Treasury Bills In Nigeria by kennyzboy: 1:49pm On Aug 21, 2015 |
Good afternoon Oga Feelamong, please which investment firms do you recommend for me to use in treasury bill purchase negotiations. I like the way you do your things here, abeg make I tap small from your wealth of knowledge and experience in this business. I dey await your response and advise. ![]() ![]() ![]() |
Re: Treasury Bills In Nigeria by unite4real: 2:38pm On Aug 21, 2015 |
princeuk21: Bank 0.125% while investment houses 0.250% |
Re: Treasury Bills In Nigeria by unite4real: 2:39pm On Aug 21, 2015 |
Royal155: This is my 5th year buying treasury bills and i can authoritatively tell you from my experiences. |
Re: Treasury Bills In Nigeria by unite4real: 2:42pm On Aug 21, 2015 |
Chillis: i share the same view with you. ![]() 1 Like |
Re: Treasury Bills In Nigeria by petikal(m): 3:16pm On Aug 21, 2015 |
Royal155:Custodian fee isn't Value Added Tax, and my response was referring to that. Custodian fee is significantly lower than VAT, which is what you get charged on things like fixed deposit. This has already been explained to @princeuk21 and this thread already covered this point. By the way, CBN website is your authoritative source of truth on this, so you can always confirm on their website. No taxes on NTB, only custodian fee. 1 Like |
Re: Treasury Bills In Nigeria by unite4real: 5:11pm On Aug 21, 2015 |
feelamong: I was informed of the transaction fee to be Bank 0.125% while investment houses 0.250% |
Re: Treasury Bills In Nigeria by ukay2: 6:43pm On Aug 21, 2015 |
My oga feelamong and other NTB gurus, please can I have a link for 4th quarter NTB programme calender? |
Re: Treasury Bills In Nigeria by Chillis: 7:16pm On Aug 21, 2015 |
ukay2:It was pasted end of page 116. 2 Likes |
Re: Treasury Bills In Nigeria by petikal(m): 7:22pm On Aug 21, 2015 |
ukay2: There's no 4th quarter calendar. What's available is historical data, up to the 3rd quarter. Add 14 days to each auction date, and you'll have your schedule. Last auction was Aug 19th; the next will be Sep 2nd, another on Sep 16th, and so on. 2 Likes |
Re: Treasury Bills In Nigeria by osile2012: 2:24pm On Aug 22, 2015 |
Hello people i have been following this thread and its been quite informative. Please i will like to know if the rates on treasury bills are static. Assuming i buy TB of 1mill for 91days at 10% is it possible that i dont get the exact 25k expected at the end of 91 days due to reduction in interest rate ?. 1 Like |
Re: Treasury Bills In Nigeria by freeman67: 3:14pm On Aug 22, 2015 |
osile2012: After the auction and your bank or investment house is successful, they'l take the fund and return the interest to ur account...at the expiration of that 91days the face value of ur investment is what will be paid back to you. Meaning if you invest 1 mill.. And ur bid at 10% is successful, they'll take 975k and refund you 25k then after 91 days they'll pay you back 1mill. Note: From the 25k I'll pay small amount for Custody fee and transaction fee. My little contribution 2 Likes |
Re: Treasury Bills In Nigeria by osile2012: 3:41pm On Aug 22, 2015 |
freeman67: Thanks alot for the explanation |
Re: Treasury Bills In Nigeria by okeyjames(m): 7:30pm On Aug 22, 2015 |
NairaQuest:Bros neither IAS 39 nor IFRS 9 specifically states how banks should handle treasury bills. But it is common knowledge that treasury bills are bought at a discount and interest is paid upfront. Read and understand the accounting standards before you misquote. |
Re: Treasury Bills In Nigeria by motherlode: 9:59pm On Aug 22, 2015 |
quertyquack:the total amount i invested was 100K and i don't know why i was debited that same amount, i thought the interest will be left in my account but no it wasn't? |
Re: Treasury Bills In Nigeria by quertyquack: 10:31pm On Aug 22, 2015 |
Oh, I see ![]() motherlode: |
Re: Treasury Bills In Nigeria by Nobody: 10:56pm On Aug 22, 2015 |
quertyquack: This is what I have been saying, they are not supposed to debit you with N100,000 rather with the purchase price so that at maturity you get credited with N100,000 and the difference becomes the interest but because Nigerian banks are getting it wrong, they debit you with the face value only to credit you back with the difference making it look like you got the interest upfront. This is a scam and I am amazed at how many people are being fooled with that misconception. Financial instruments and derivatives originated in the US and other more advanced economies, I never saw Wall Street come up with that falacious notion that TBills pay interest upfront |
Re: Treasury Bills In Nigeria by Nobody: 11:03pm On Aug 22, 2015 |
okeyjames: IAS39 deals mostly about fair value accounting and hedge accounting. Yes, it did not specifically talk about how banks should deal with TBills however, when you buy a TBill at a discount,the journal entry is usually a credit to cash for the purchase price and a debit to investment account. By virtue of the realization principle in accounting you have not earned the interest and therefore prudence principle of accounting will not allow you to credit interest revenue on purchase date, rather at maturity or on sales date if you sell it before maturity For my own edification since I am not in Nigeria and may have lost touch with realities in Nigeria, could you let me know the direction of cash flow when aTBill is purchased |
Re: Treasury Bills In Nigeria by princeuk21(m): 11:20pm On Aug 22, 2015 |
motherlode:maybe they used the money for fixed deposit but contact your branch manager. |
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