Bluecollarguy:
As a diaspora account holder who got tired of waiting for unsuccessful primary auctions, GTBank finally allowed me to bid in the secondary market, thanks to some of you who hinted me on how to go about it. My secondary market transaction.

Bluecollarguy:
As a diaspora account holder who got tired of waiting for unsuccessful primary auctions, GTBank finally allowed me to bid in the secondary market, thanks to some of you who hinted me on how to go about it. My secondary market transaction is explained below:

Principal = #3.2m, Tenor = 182days. My stated rate based on my findings on this forum yesterday(March20) = 12.2%

Today, I received these 4 alerts for debited amounts:

(1) N3,033,937.44 ... (2) N3,740.55 ... (3) N192.03 ... (4) N100

I understand that alerts 2-4 pertain to the deducted(whatever) fees, but my focus is on alert (1) using calculation below:

I = (3,200,000 - 3,033,937.44) = N166,062.56

166,062.56 = 3,200,000 *R *182/364
R = 10.38%

As a customer/investor, if my stated Tbill rate is 12.2%, is the bank legally obligated to disregard my instruction and apply whatever rate? Here in America, if the similar event takes place, the transaction would not go through, on the basis that my stated rate is>secondary market rate. OR the bank would have the decency of sending me the available secondary rates and options, and allow me to select one.

So, my fellow investors, I come to you with humility for your take on this matter: Since the bank did not explicitly tell me what rate was applied on my investment, is my calculation for the rate correct? Is 10.38% too low for 182 days, compared to the recently published secondary rates by various banks? Do banks in Nigeria always disregard your instructions and apply whatever rate in the secondary auction? OR am I overreacting? I am only putting this out there to help me eliminate all vagueness and help me prepare better for future investments. As always, your input is greatly appreciated!

Bluecollarguy:
As a diaspora account holder who got tired of waiting for unsuccessful primary auctions, GTBank finally allowed me to bid in the secondary market, thanks to some of you who hinted me on how to go about it. My secondary market transaction is explained below:

Principal = #3.2m, Tenor = 182days. My stated rate based on my findings on this forum yesterday(March20) = 12.2%

Today, I received these 4 alerts for debited amounts:

(1) N3,033,937.44 ... (2) N3,740.55 ... (3) N192.03 ... (4) N100

I understand that alerts 2-4 pertain to the deducted(whatever) fees, but my focus is on alert (1) using calculation below:

I = (3,200,000 - 3,033,937.44) = N166,062.56

166,062.56 = 3,200,000 *R *182/364
R = 10.38%

As a customer/investor, if my stated Tbill rate is 12.2%, is the bank legally obligated to disregard my instruction and apply whatever rate? Here in America, if the similar event takes place, the transaction would not go through, on the basis that my stated rate is>secondary market rate. OR the bank would have the decency of sending me the available secondary rates and options, and allow me to select one.

So, my fellow investors, I come to you with humility for your take on this matter: Since the bank did not explicitly tell me what rate was applied on my investment, is my calculation for the rate correct? Is 10.38% too low for 182 days, compared to the recently published secondary rates by various banks? Do banks in Nigeria always disregard your instructions and apply whatever rate in the secondary auction? OR am I overreacting? I am only putting this out there to help me eliminate all vagueness and help me prepare better for future investments. As always, your input is greatly appreciated!

Onlytru:
The truth is here in America, you can only go with the bank rate ... period! Rate of T-bills in America is ~3% a far cry from what you will get in Nigeria. Money mutual and fixed deposit are even worse ~1.5%

TotoNaRubber:
The rate they sold the 182 days treasury bills to you hovers around the 10.38 percent, however the way Gtb works may be different from other banks. It looks like they sold you the treasury bills without proper information and autorisation from you.

Maybe that is their mode of operation.

elpiro:

I think it is highly difficult to get 182 days at the secondary market,and your choice of words(stated rate) do not work for secondary market. You only select from the available rate. That might account for the disparity in rates. Reconfirm from your bank.

Bluecollarguy:
As a diaspora account holder who got tired of waiting for unsuccessful primary auctions, GTBank finally allowed me to bid in the secondary market, thanks to some of you who hinted me on how to go about it. My secondary market transaction is explained below:

Principal = #3.2m, Tenor = 182days. My stated rate based on my findings on this forum yesterday(March20) = 12.2%

Today, I received these 4 alerts for debited amounts:

(1) N3,033,937.44 ... (2) N3,740.55 ... (3) N192.03 ... (4) N100

I understand that alerts 2-4 pertain to the deducted(whatever) fees, but my focus is on alert (1) using calculation below:

I = (3,200,000 - 3,033,937.44) = N166,062.56

166,062.56 = 3,200,000 *R *182/364
R = 10.38%

As a customer/investor, if my stated Tbill rate is 12.2%, is the bank legally obligated to disregard my instruction and apply whatever rate? Here in America, if the similar event takes place, the transaction would not go through, on the basis that my stated rate is>secondary market rate. OR the bank would have the decency of sending me the available secondary rates and options, and allow me to select one.

So, my fellow investors, I come to you with humility for your take on this matter: Since the bank did not explicitly tell me what rate was applied on my investment, is my calculation for the rate correct? Is 10.38% too low for 182 days, compared to the recently published secondary rates by various banks? Do banks in Nigeria always disregard your instructions and apply whatever rate in the secondary auction? OR am I overreacting? I am only putting this out there to help me eliminate all vagueness and help me prepare better for future investments. As always, your input is greatly appreciated!

Bluecollarguy:


Although, some hover around 12% for the same tenor but I can live with the 10.38%, besides half bread is better than none. But I wish the banks could communicate a bit better with their customers.

Rijo02:


This is your money you are talking about with half bread is better than none "talk". Ok ooo! Maybe you are making the big monies shaa as your moniker na Bluecollarguy! I don't know the type of America why you live oo (no offense) but this dollar you converted to Naira is never picked up from the tree (unless e dey happen some places why I know no). Try and get an explanation to what happened to your TB transaction.

Bluecollarguy:


My brother, I admire your observation. I own and manage a small construction co. here with small investment in Real Estate, hence my name 'bluecollarguy.'...I hold a Business Degree from a prestigious University here sha, but I chose the blue tcollar path because ee dey make sense pass to dey wear suit and tie. My plan na to retire early, liquidate my business and come back to Nigeria, that's why I invest heavily in Tbill. And of course I was expecting at least N190K from my N3.2m investment but I'll manage the N160K. 190K-160K = 30K = $83... life goes on! Nigeria wahala too much, but I'll talk to my account oftficer as you advised. God bless!

Francisvis:
whats your quantity and rate ?

Bluecollarguy:


My brother, I admire your observation. I own and manage a small construction co. here with small investment in Real Estate, hence my name 'bluecollarguy.'...I hold a Business Degree from a prestigious University here sha, but I chose the blue collar path because ee dey make sense pass to dey wear suit and tie. My plan na to retire early, liquidate my business and come back to Nigeria, that's why I invest heavily in Tbill. And of course I was expecting at least N190K from my N3.2m investment but I'll manage the N160K. 190K-160K = 30K = $83... life goes on! Nigeria wahala too much, but I'll talk to my account officer as you advised. God bless!

Bluecollarguy:


Although, some hover around 12% for the same tenor but I can live with the 10.38%, besides half bread is better than none. But I wish the banks could communicate a bit better with their customers.

Bluecollarguy:
As a diaspora account holder who got tired of waiting for unsuccessful primary auctions, GTBank finally allowed me to bid in the secondary market, thanks to some of you who hinted me on how to go about it. My secondary market transaction is explained below:

HeliosHay:


Out of curiosity, do you intend on repatriating your profits from TB to the USA or leaving it in Nigeria?

I also want to start investing in TB (live in london), but I'm scared of the exchange rate going against me and erasing any gains I make in TB when I want to repatriate my profits back to UK.

It's not like people buy currency futures to lock in their exchange rate.

ahiboilandgas:
I really don't encourage persons converting dollars to invest in Nigeria treasury bills ..unless at the short end max 3 moths then constantly converting the interest back to dollars even at this the main capital is at huge risk ...money is not in number but it purchasing abilities so if u intend to live abroad this not the way to go .....the cbn is till funding the markets with 200 million weekly ,a new cbn governor is coming ....covegence of rate is a most for sustainable forex markets and inflow ....all this economic paramater are too much for a small investor .....from 1992 to 2019 it happen over 15 times

tritritri:




Thank You, But the Foreign Institutional BIG GUY (hedge fund / investment firm ) brought in $3 B after election and it all went into FIXED INCOME.( T.BILL& BOND). It a game they play every year ONCE they r confident dere is no devaluation..

Imagine 15% for the last 2years in nigeria , dat 30% return in 24mths...but in usa dat barely 7% in 24mths . so the diffrence is clear.

i will play d game as well... Emergin market is risky.but the reward is worth it. and some r able to handle/navigate the risk.

ahiboilandgas:
why not buy euro bond ....any devalution can wipe out your entire gain over years plus loss the purchashing power of the capital....imaging converting 20000 pounds in 2015 (5 m naira) to buy tb by 2019 the total investment and profit is around 7,500,000 (tb can go as low at 10 percent ) covert this to pounds at 470 that around 16000 pounds so u lost 4000 pounds ..this happen and will surely happen again in Nigeria with out cut and join economy ....when we can tell but the sign are there....unless u are planing to return to Nigeria and all your expense will be naira ......at least a bottle of Pepsi is still 100 naira from 2015 to date ,.....

ahiboilandgas:
The foriegn player remit their money at 305 back to their country while an individual player will buy at 360 .....that why they take more risk

ahiboilandgas:
The foriegn player remit their money at 305 back to their country while an individual player will buy at 360 .....that why they take more risk

234ng44uk:


I doubt the credibility of this information. If that were the case, then Nigeria will be the number one investment destination in the world where our national bank would become their bureau de change

lancee:



I doubt it sir , pls if u have proof I will appreciate

I only know of the I & E Fx window that was created for them April 2017 cos of forex shortages ..which they come in and change their money and buy back when leaving ..Am tryin to learn sir , need more info as per them coming in @ 360 then repatriate their money @ 305

ahiboilandgas:
why not buy euro bond ....any devalution can wipe out your entire gain over years plus loss the purchashing power of the capital....imaging converting 20000 pounds in 2015 (5 m naira) to buy tb by 2019 the total investment and profit is around 7,500,000 (tb can go as low at 10 percent ) covert this to pounds at 470 that around 16000 pounds so u lost 4000 pounds ..this happen and will surely happen again in Nigeria with out cut and join economy ....when we can tell but the sign are there....unless u are planing to return to Nigeria and all your expense will be naira ......at least a bottle of Pepsi is still 100 naira from 2015 to date ,.....

Bluecollarguy:


Although, some hover around 12% for the same tenor but I can live with the 10.38%, besides half bread is better than none. But I wish the banks could communicate a bit better with their customers.

Omonigeriarere:


Why going for such rate when a predetermined rates on I-Invest is better?

U need to wake up

234ng44uk:


I doubt the credibility of this information. If that were the case, then Nigeria will be the number one investment destination in the world where our national bank would become their bureau de change