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Nairaland Forum / Nairaland / General / Politics / FG To Borrow N823b Through Treasury Bills In First Quarter 2019 (11016 Views)
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Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by integrity16(m): 9:38am On Jan 11, 2019 |
lexy2014: Kuku kill yourself then. |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by mistyebby(f): 9:44am On Jan 11, 2019 |
alezzy13: Good you mentioned the possibility of a very unlikely event. Deficit funding got worse in this administration.I guess you are one of the few benefiting if not, use your knowledge to figure out how these borrowed monies are used. |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by lexy2014: 10:18am On Jan 11, 2019 |
integrity16: Na so d matter de pain u reach? Am I d one who asked u not 2 distinguish between budgets implemented by d FG& those implemented by states& LGs? Are u now going 2 kill urself cos u made an error? |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by demolinka(m): 10:59am On Jan 11, 2019 |
Abeg who Sabi bank wey person fit arrange treasury bill for like 100k with, better interest rate? Tank ewe |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 12:12pm On Jan 11, 2019 |
There is Zero risk of default on T-Bills for one simple reason .It is their currency and so in the worst case scenario they will simply "print" more Naira. The reall risk is that by the time you get paid the moneydoes not retain its value relative t foreign currency or market priices as we saw in 20 15, 2017 and early 2017. Indeed hig interest rate is a measure of how likely investors perceive this risk . If high interest rates cannot perceive people to save it means their is high inflation. If people do not save again there is no money for banks to lend out. Our inflation rate is very high and our interest rates are too high . |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Adex5050(m): 12:29pm On Jan 11, 2019 |
DLifeless1: |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Phyde: 3:15pm On Jan 11, 2019 |
TrendingAccount:Hope we will get back our 18% and above interest rate on this |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Viicfuntop(f): 3:55pm On Jan 11, 2019 |
Shawnnn01: It’s so easy to know the illiterates on this platform. Read that again and see if it made sense to you? 2 Likes |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Nobody: 5:27pm On Jan 11, 2019 |
you obviously don't know how t-bills work, they are the "safest" invstements you can make and the default rate is really low CyberWolf: 1 Like |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by 9japrof(m): 6:21pm On Jan 11, 2019 |
iammo: Using your thesis, obasanjo that fought with his sweat and prowess to negotiate us away from billions of debts in dollars must be a stupid black man... Use your sense once, these politicians dont care about you 2 Likes |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 6:34pm On Jan 11, 2019 |
OdikwaRisky:They are not "safe" at all they are very vulnerable to inflation and exchange ratee risk if the source of your funds is in dollars. Rewind to 4 years ago exactly what happened to those who bought FG paper when dollar was 150:1 ? within a matter of months the value was eroded by half and the 14% interest was not enough, Inflation in Nigeria is too high too make goernment paper "safe" and that is why the interest rates are that high. Compare that with US in 2017 that were 1%. In 2015 yield was 0.09 & i.e If you lend the government $1000000 they'd pay $900 as interest at the end of the year So banks needed to be creative to make money In Nigeria the government is effectively subsidizing banks What that is saying is that the dollar is so safe we don't need to pay to borrow In fact all you needed to do was borrow in the US bring it to Nigeria buy treasury bills and you could make "safe " millions with ease/ Unless the Naira crashes and then you'd struggle to pay unless you were connected when you could buy at government rates and sell at the black market |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by iammo(m): 6:34pm On Jan 11, 2019 |
9japrof: common sense is indeed scarce and thats the reason why we have hopeless jobless youths, and dull 85million poor people.. the debt relief obasanjo sorted was balance and deficit of forex transactions during abacha and babangida regimes, according to debt management office our debt to GDP is so little it seems Nigeria dont want to develop by using the money market..... i get your fears caused by PDP's corrupt bad debt, however china nexim bank loan goes straight to railway contractors, sukuk bond goes straight to road contractors |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 6:47pm On Jan 11, 2019 |
iammo: Abusive language is no substitute for a reasoned argument Debt to GDP revenue is a crude measure of what you should be borrowing First how efficient historically has the government been at extracting revenue from that GDP base and how efficient is it likely to be in the future We talk of GDP that is millions of people selling Gala in the street, pure water seller and poultries with 1000 chickens here and there .What kind of tax can they pay to help service debt? If you compare two economies with a GDP of 100 billion one with a population of 100 million people and a per capita of $1000 per annum and the other with 5 million people and a per capita of £20000 is the capacity to pay tax the same? One is a medium income economy while the other is a poverty economy A man with 10 children and a man with 2 children on the same salary have the same "household income" their capacity to borrow or repay are NOT the same Debts have to be serviced and that it is why it is important to factor in the ability to repay as well as the interest rate 10% interest rates very quickly become a burden. Now it is being claimed that servicing is approaching 40% of revenue. Does the Debt to GDP model also prescribe what fraction of REVENUE should go into debt servicing? Most of the Expenditure in the budget now goes on Recurrent Expenditure which is mainly on salaries and debt servicing Thse are the issues that require intellectual engagement not gratuitous and self indulgent abuse . Any one can call the nexxt person dull or jobless it changes nothing If we spend all our money servicing debt and paying salaries then we never grow. |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Nobody: 9:08pm On Jan 11, 2019 |
Lol this your long story is completely irrelevant, when I said “safe”, I meant that the default risk is very low (you’d almost always get your interest payment irrespective of how low it is or have eroded the value will become ) compared to riskier assets like equities where dividends are not guaranteed. Of course bills and bonds and securities in general are succeptible to macroeconomic fluctuations, you really didn’t need to write a whole thesis about that. omonnakoda: |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 9:21pm On Jan 11, 2019 |
OdikwaRisky:Default risk is low means what that you get 1 million "Naira" back but what if 1 million naira is worth 1% of what it was when you invested. Default is JUST ONE of several ADVERSE EVENTS that can happen to an investment Safety cannot mean just default but LOSS of investment of any description. With goverment paper inflation is a fundamental consideration In 2015 the naira lost 50% in 2-3 months that is not SAFE in my book Safety must cover inflation/devaluation risk I went into detail to hilight that your claim was, to be fair, UNTRUE they are not safe AT ALL calling it irrelevant, a thesis is your problem, I understand your psychology, it is what it is .Anyone can say anything If you don't like it delete it the interest rate IS A MEASURE OF RISK The market has judged them to be HIGH RISK Some investors would consider Nigerian government paper to be Junk Bonds. How many Nigerians living in the US are confident enough to take a loan and invest in T-Bills |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Nobody: 10:29pm On Jan 11, 2019 |
OMFG what the fuçk are you saying just shut up and stop embarrassing yourself on a public forum, you don’t know Shît about about what you’re saying. Just shut the fuçk up and drink some water. Gosh Nigerians are so fuckîng dumb I don’t know if y’all are cursed. Just look at the confidence with which you’re spilling such balderdash. Use google if you’re not clear on what I’m saying, I’m saying one thing and you’re obviously saying something else. It’s obvious you don’t even know what I’m talking about Just google the meaning of default risk and go back to my former post and hopefully you’d understand what I mean. Stop flaunting your ignorance in my face biko. And pls we all know what inflation does to the value of money and I was never contesting that. I was never talking about that in the first place. I too know omonnakoda: |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by grandstar(m): 1:50am On Jan 12, 2019 |
iammo: Why the self hating of your colour Your colour has nothing to do with outcomes In 1978 China was extremely backward. It did not not mean Chinese people were daft or idiots but rather gthey had been misruled for about 40 years under Chairman Mao. They now launched economic reforms which saw them increase GDP (I think 40 fold) over 40 years. Italians were once very backwards and poor and scorn was poured on them in America but today are one of the 10 largest economies in the world Your have wealthy black countries like the Bahamas and Barbados. In Africa Botswana has done quite well And Nigerians are the ethnic group in the United states with the highest per capita university education in that country! 1 Like |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Yankee101: 2:46am On Jan 12, 2019 |
Seems like one of the largest tbills ever issued Una wan borrow naija money use for elections come leave next govt with gbese? Ngozi cleared out debt, Buhari took us deeper into debt 1 Like |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Yankee101: 2:53am On Jan 12, 2019 |
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Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 3:11am On Jan 12, 2019 |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Yankee101: 3:18am On Jan 12, 2019 |
omonnakoda: Absolutely. Where does your confusion lie about Ngozi clearing our debt or Buhari worsening it? 1 Like |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Nobody: 3:23am On Jan 12, 2019 |
olodo ready to spill more shīt? omonnakoda: |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 3:26am On Jan 12, 2019 |
Yankee101:Ngozi was a Finance Minister Buhari is a President compare like with like Obasanjo cleared debt In terms of Buhari He took over from Jonathan not Obasanjo and under Jonathan the debt position worsened . It was under Jonnathan with Ngozi's connivance that Dasuki raided the Central bank and in her last few weeks in office she borrowed to pay salaries and reversed all the good work Obasanjo had done https://www.premiumtimesng.com/business/182543-nigerian-govt-borrowing-billions-to-pay-salaries-okonjo-iweala.html |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Yankee101: 3:32am On Jan 12, 2019 |
omonnakoda: We are comparing PDP with APC, NGozi straddled most of the time of PDP in power so when i invoke her name you should ordinarily know that's referring to PDP Borrowing during goodluck can be located in projects. The airports and railways Buhari is clapping at himself for are all goodluck brainchilds. |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 3:50am On Jan 12, 2019 |
Yankee101:Sorry I am non partisan politically I do not support any party Your claim abut Ngozi was wrong there was a fundamental difference between Obasanjo and Jonathan She came into Jonathan's government in 2011 and within months it was a disaster They gave us the January 1 fuel price increase and the monumental scandal of the fuel subsidy increase in her very first budget It is clear that the woman needed supervision and guidance which Jonathan could not provide instead he foolishly made her coordinating Minister and it was made clear that she was alll hype Her first budget under him was perhaps the worst display of incompetence in our history when the fuel subsidy increased monumentally overnight Remember the Otedola story? She superintended Dasuki looting the CBN under Jonathan and so on So there is no way she can be given credit for cleearing debt especially as she borrowed massively under Jonathan even before the oil price crashed reversing all the work of Obasanjo' government Debt clearing and pension reform must be credited to Obasanjo who I do not support either but you comparison of Ngozi to Buhari is crazy compare Buhari to Jonathan or Obasanjo |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by iammo(m): 4:02am On Jan 12, 2019 |
grandstar:.. i added the last part to awaken their mind on the fact that not all debt are bad, loans help you grow |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by Yankee101: 4:05am On Jan 12, 2019 |
omonnakoda: I won't comment further really. No Nigerian govt has performed excellently to any decent level (maybe Tafawa Balewa, but who was still playing Ahmadu Bello's regional politics) without sectional inclinations. I thought you were Buharistan |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by omonnakoda: 4:12am On Jan 12, 2019 |
Yankee101:Gowon performed excellently with Awo as Finance minister prosecuting a 3 year war with no debt at the end and no oil revenue. Our currency retained its value and there was no inflation |
Re: FG To Borrow N823b Through Treasury Bills In First Quarter 2019 by iammo(m): 4:18am On Jan 12, 2019 |
omonnakoda:. i'll try to be breif as posible; Nigeria needs to spend on infrastructure to diversify our economy.. infrastructural deficit is put at $100bn and our oil daily production is over 2.5mbp giving us annual output of ext 1bn barrels and at current price we earn $55bn annualy, cost of production stands at $10 per barrel that leaves us with $45bn, our OML owners share 60/40 with FG, leaving us with $27bn a year for all arms of govt to share.. thus leaving FG with about $10bn to handle its recurrent and capital projects. . now i ask you shouldnt we access the money market to fix fund generating critical infrastructure, or should we rather wait for non willing investors, or wait tilm we can save for it |
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