You can only buy from Secondary Market ( Banks) Unless you have 50m.

Banks buy from CBN, then individuals with less than 50m buy from the banks. That's Secondary market, you don't get to set your rate, only take what the bank will give.

I learnt that from this thread first before a guy at FBN explained to me.

If you are using Stanbic, you don't have anything to fear, likely their rates are the best so far according to TBills experts in the house.

Uchefrancis16:
Am at stanbic IBTC bank now at Awka zik avenue. Told them I want to invest in TBills and they said its a minimum of 50 million. I said am quite aware of that but thought that only means we can't bid by ourself but can go with bank rate.

And the young guy is telling me I have to buy from secondary market. And that I can only buy from the primary market if they are able to gather up some group of individuals with same interest and then match up all their fund to meet with the 50 million naira minimum.

Am just confused here. Is it that this guys are not informed or Should I goto another branch? Which do you guys use?

I was offered 17% for 72days at firstbank and i have been debited. Awaiting my interest to really know if the guy was correct on the 17% he mentioned.

Uchefrancis16:
Am at stanbic IBTC bank now at Awka zik avenue. Told them I want to invest in TBills and they said its a minimum of 50 million. I said am quite aware of that but thought that only means we can't bid by ourself but can go with bank rate.

And the young guy is telling me I have to buy from secondary market. And that I can only buy from the primary market if they are able to gather up some group of individuals with same interest and then match up all their fund to meet with the 50 million naira minimum.

Am just confused here. Is it that this guys are not informed or Should I goto another branch? Which do you guys use?

amjustme2:
You can only buy from Secondary Market ( Banks) Unless you have 50m.

Banks buy from CBN, then individuals with less than 50m buy from the banks. That's Secondary market, you don't get to set your rate, only take what the bank will give.

I learnt that from this thread first before a guy at FBN explained to me.

If you are using Stanbic, you don't have anything to fear, likely their rates are the best so far according to TBills experts in the house.

Please let's get this right one more time.
You can buy Tbills from the primary market even if you don't have up to N50m. You will only loose the right to insist on your own rate. What the bank does is to pull customers' funds together (which will have to amount to at least N50m and above) and bid with bank rate (you don't decide the rate) on the day of auction. When result of auction is announced and the Bank's bid is successful, you get debited and interest paid upfront.
At the secondary market, you don't wait for auction dates. You can walk into the bank any working day of the week and invest in Tbills. No auction. They just tell you their own prevailing secondary market rate like they do for fixed deposit. Secondary market rates are understandably lower because the bank simply resells what they bought from the primary market. I hope this clarifies us.

Pm me I will send you someone's contact

asbanko:
Can someone please help with a knowledgeable account officer at Stanbic IBTC bank most especially at the Head office? I have some cash to invest in TB next week and the folks in the branch I went to seemed to lack Treasury literacy.

toast224:
I was offered 17% for 72days at firstbank and i have been debited. Awaiting my interest to really know if the guy was correct on the 17% he mentioned.

My upfront interest has just been credited by firstbank and by my calculation, 17.5% for 72days. secondary market is making sense.

toast224:

My upfront interest has just been credited by firstbank and by my calculation, 17.5% for 72days. secondary market is making sense.

Yes. It is a win-win scenario for both the customers and the banks, if the tenor required is much lower than 364 days. The fewer the number of days, the better. My guess is that what was sold to you is the remaining days due to lapse on a previously bought TB with a much longer tenor, and maybe a much higher interest rate. Obviously the bank offloaded the TB at a much higher rate (17.5%) than the average 13% for a 91 day tenor, in order to buy another TB for 364 days, since no one can be certain CBN will still be offering the ongoing relative high interest rate in 72 days' time.
NB. It could also be a wise customer, who is repositioning himself for another 364 day tenor.

Take home information- You are better off to buy in the secondary market if you are after a short tenor like a 91 day tenor; but to apply via your bank and choose the bank rate if you want to lock-in the prevailing high rate for a much long tenor of 364 days.

toast224:

My upfront interest has just been credited by firstbank and by my calculation, 17.5% for 72days. secondary market is making sense.

I just left FBN One branch in Port Harcourt now, the lady I met, Stephanie (or something sound like that) told me that she don't know the interest rate on Tbill & the auction both Secondary & primary is not on sale cos the did 1 last week.
I told her that I heard that 1 will be out today but she said no. she was trying to push me to fixed deposit which I resist.

is it that she is not experience abt Tbill or she is using market strategy for me cos she makes me confused

agoro2u:


I just left FBN One branch in Port Harcourt now, the lady I met, Stephanie (or something sound like that) told me that she don't know the interest rate on Tbill & the auction both Secondary & primary is not on sale cos the did 1 last week.
I told her that I heard that 1 will be out today but she said no. she was trying to push me to fixed deposit which I resist.

is it that she is not experience abt Tbill or she is using market strategy for me cos she makes me confused

kindly disregard her info. some bankers dont know about TB, few that know will want to push you to fixed deposit.
I did mine in portharcourt too. kindly go to firstbank before airforce base, walk into their bulk room and ask of the guy incharge of TB. Cheers

agoro2u:


I just left FBN One branch in Port Harcourt now, the lady I met, Stephanie (or something sound like that) told me that she don't know the interest rate on Tbill & the auction both Secondary & primary is not on sale cos the did 1 last week.
I told her that I heard that 1 will be out today but she said no. she was trying to push me to fixed deposit which I resist.


is it that she is not experience abt Tbill or she is using market strategy for me cos she makes me confused

It is either she is very ignorant of the Treasury bills market. Or she is using market strategy for you as you suggested. Unfortunately it is now too late for you to position yourself for the auction that is due tomorrow Wednesday 19 April, and to be effected on customers' accounts on Thursday 20 April/ Friday 21 April depending on your bank.
Attached is the TB time table that was posted earlier on the trend.

dejiotus:


It is either she is very ignorant of the Treasury bills market. Or she is using market strategy for you as you suggested. Unfortunately it is now too late for you to position yourself for the auction that is due tomorrow Wednesday 19 April, and to be effected on customers' accounts on Thursday 20 April/ Friday 21 April depending on your bank.
Attached is the TB time table that was posted earlier on the trend.

Auctions would be held on the 20th not 19th, but like u said he is already late because his application should be on their table latest today before close of work.

zamirikpo:


Auctions would be held on the 20th not 19th, but like u said he is already late because his application should be on their table latest today before close of work.

Thanks for the correction. The impression I have from my account officer is that bids are submitted to CBN by banks on a Wednesday, but the deals are effected on a Thursday. Ideally it is better to submit the application latest on Monday preceding the auction day, and to followup the following day (Tuesday) to be sure your application has been submitted to the head office; this is particularly important if you have an unreliable account officer.

I submitted mine today morning for a 364 tenor, FBN in Port Harcourt too though Woji Branch. Let's hope the officer is not a lazy type!

zamirikpo:


Auctions would be held on the 20th not 19th, but like u said he is already late because his application should be on their table latest today before close of work.

Auction usually takes place on Wednesday while bank account is debited on Thursday of the auction week.

amjustme2:
I submitted mine today morning for a 364 tenor, FBN in Port Harcourt too though Woji Branch. Let's hope the officer is not a lazy type!

Your application is too late for the 20th auction. There was a memo in all first Bank to effect every bid for 20th on or before 13th of April.

I still submitted my application and asked them to keep it for the next auction.

So be careful not to be given a secondary market rate

I did not get this info on time.
I think it's late already.

pafra:


Your application is too late for the 20th auction. There was a memo in all first Bank to effect every bid for 20th on or before 13th of April.

I still submitted my application and asked them to keep it for the next auction.

So be careful not to be given a secondary market rate

Agbaletu:


zamirikpo, i am with you jare, everybody can not be doing business, we all have one or two things that bring money to our tables. My idle fund is in TB instead of leaving it in my savings account that will bring less or nothing. I started TB with 6 digits and it has grown to 8 digits. Do you expect me to leave what i am doing for another unknown and risky business? When i started TB some years back, a friend advised me to buy cabs for town service that they will fetch more money than TB...that was the greatest mistake i ever made. Do you know that some of my landed properties were bought with the profit i made in TB and i still have my money intact?

What type of TB do you do that you were able to buy these things?

chukzyfcbb:

secondary market means u will be buying from the bank I.e the bank will sell to you from the thier own investment already made. if they invested tbills at 17% 364days for instance, the secondary market means they could offer u 15% 364days from that investment they made earlier, so its not fresh like the primary market where bidding takes place.
below are the fees deduction from fbn

say you invest 1milloon
at 10% 364days
interest ought to be 100,000

custodian fee(0.125%) - 125naira
commission fee (0.10%) -100naira
transaction fee (#100) - 100naira
Vat (5% of all three) - 5% of 325= 16.25

making a grand total of 125+100+100+16.25= 341
so after deducting 341 from the 100,000
your actual interest will be = 99,659 for the year
this should be the charges on 1m investment according to first bank.

please i saw a penal charge in the event of liquidation before maturity. What does that mean?

modelsms:


please i saw a penal charge in the event of liquidation before maturity. What does that mean?

It means in the event you wish to sell your TB before maturity date, you will pay a fee.

modelsms:


What type of TB do you do that you were able to buy these things?

The right question is how much he is investing

D higher u invest d more money u make, its nt rocket science

Good am guys.
Please I need guidance from someone with FBN Tbills experience. My investment is supposed to have matured yesterday and the impression I had from this forum was that my alert would wake me up on the date. And until now am still expecting my money. Do I need to approach the bank b4 they do the right thing? And what, in case they act funny?
Thanks as I await informed responses.

Bennycollins:
Good am guys.
Please I need guidance from someone with FBN Tbills experience. My investment is supposed to have matured yesterday and the impression I had from this forum was that my alert would wake me up on the date. And until now am still expecting my money. Do I need to approach the bank b4 they do the right thing? And what, in case they act funny?
Thanks as I await informed responses.

Matured Treasury bills are usually paid back to customers' accounts before the end of business on Thursday after the auction, and not on Wednesdays.
Dear Bennycollins, be reassured your account will be credited unfailingly before the end of business today if the TB you invested in, is definitely the genuine Nigerian treasury bills market. And you do not need to contact your bank before your investment is returned back to your account on maturity.

Thanks for your reply. AS a first time investor, I am just being anxious. I was actually given upfront interest and the investment letter is with me so I think it's genuine.

dejiotus:


Matured Treasury bills are usually paid back to customers' accounts before the end of business on Thursday after the auction, and not on Wednesdays.
Dear Bennycollins, be reassured your account will be credited unfailingly before the end of business today if the TB you invested in, is definitely the genuine Nigerian treasury bills market. And you do not need to contact your bank before your investment is returned back to your account on maturity.

Bennycollins:
Good am guys.
Please I need guidance from someone with FBN Tbills experience. My investment is supposed to have matured yesterday and the impression I had from this forum was that my alert would wake me up on the date. And until now am still expecting my money. Do I need to approach the bank b4 they do the right thing? And what, in case they act funny?
Thanks as I await informed responses.

Your money would be credited back to you today.... same thing here.... just saw mine now... i guess it matures today and not yesterday because February has 28days

I will be very grateful if any of our members with the stop rates for the auction yesterday, can provide the house with the rates. Many thanks

Naira Gains Momentum, Closes at 390/Dollar
http://investorsking.com/naira-gains-momentum-closes-at-390dollar/

The naira recorded a major gain on Wednesday, closing at 390 per United States dollar at the parallel market, up from 405/dollar on Tuesday.

This came barely 24 hours after the Central Bank of Nigeria announced the injection of $280m into the various segments of the forex market and the commencement of its weekly $20,000 sale to licensed Bureau De Change operators.

Before closing at 405/dollar on Tuesday, a day after the Easter holidays, the local unit had closed flat at 410/dollar for seven consecutive days.

As a result, currency analysts had expressed concerns over the exchange rate resistance to the CBN’s continued dollar supply into the forex market aimed at bridging the gap between parallel and official exchange rates.

Last week, some currency analysts predicted the naira would appreciate this week if the central bank sustained its interventions in the market.

Some experts, however, expressed doubt that the CBN possessed the stock of forex to wage the currency war against speculators.

But the regulator has assured the market participants that with the external reserves currently at $30bn and with oil hovering above $50/barrel, it will sustain the regular dollar injections.

The local currency had closed at 375/dollar about three weeks ago amid record dollar injections by the central bank.

Last week, commercial banks could not purchase $39m out of the $100m offered for sale by the CBN on Thursday due to shortage of naira.

A breakdown of the CBN’s $280 intervention on Tuesday showed that invisibles such as Business Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80m, while the Small and Medium Enterprises window received $100m. Together with the wholesale bid auction of $100m, the CBN sold $280m into the market.

The bank’s spokesman, Mr. Isaac Okorafor, said the CBN was committed to supplying forex to genuine bank customers.

dejiotus:


Yes. It is a win-win scenario for both the customers and the banks, if the tenor required is much lower than 364 days. The fewer the number of days, the better. My guess is that what was sold to you is the remaining days due to lapse on a previously bought TB with a much longer tenor, and maybe a much higher interest rate. Obviously the bank offloaded the TB at a much higher rate (17.5%) than the average 13% for a 91 day tenor, in order to buy another TB for 364 days, since no one can be certain CBN will still be offering the ongoing relative high interest rate in 72 days' time.
NB. It could also be a wise customer, who is repositioning himself for another 364 day tenor.

Take home information- You are better off to buy in the secondary market if you are after a short tenor like a 91 day tenor; but to apply via your bank and choose the bank rate if you want to lock-in the prevailing high rate for a

91 days with #500,000 @13% how much will it be? .

zamirikpo:


The right question is how much he is investing

D higher u invest d more money u make, its nt rocket science

For him to be able to buy all those things, then he should have invested a very large amount, but it is very unwise/scarry of him instead of going into the real sector that would have fetch him more returns and also create employment for Nigerians

ihedioramma:
91 days with #500,000 @13% how much will it be? .

Roughly N16,250 less the usual deductions (commission, custodian fees etc).
Note that the 13% is per annum, and NOT for 91 days. This is a common error that I have noticed by some of our forum members, when the interest is being calculated.

dejiotus:


Roughly N16,250 less the usual deductions (commission, custodian fees etc).
Note that the 13% is per annum, and NOT for 91 days. This is a common error that I have noticed by some of our forum members, when the interest is being calculated.

I dont understand you sir, one annum is it not 91 days ? . what am asking is that the total profit of #500,000 @13% for 91 days ? .

ihedioramma:
I dont understand you sir, one annum is it not 91 days ? . what am asking is that the total profit of #500,000 @13% for 91 days ? .

Total Profit = P*T*R / (100 * days in a year)

P = Principal

T = Time/Duration

R = Rate

So:

P = 500,000

T = 91

R = 13

Total Profit = (P*T*R) / (100 * days in a year) = (500,000 * 91 * 13) / (100 * 365) = 591500000 / 36500 = 16,205.48

NL1960:


Total Profit = P*T*R / (100 * days in a year)

P = Principal

T = Time/Duration

R = Rate

So:

P = 500,000

T = 91

R = 13

Total Profit = (P*T*R) / (100 * days in a year) = (500,000 * 91 * 13) / (100 * 365) = 591500000 / 36500 = 16,205.48

Thank's . what of 500,000 by 17% 182 days ?

ihedioramma:
Thank's . what of 500,000 by 17% 182 days ?

Shuooooo. This guy, you sabi worry sha. You can substitute the figures into the formula now.

Total Profit = P*T*R / (100 * days in a year)

P = Principal

T = Time/Duration

R = Rate

So:

P = 500,000

T = 182

R = 17

Total Profit = (P*T*R) / (100 * days in a year) = (500,000 * 182 * 17) / (100 * 365) = 1547000000 / 36500 = 42,383.56