Infinitisi:
https://nairametrics.com/2019/06/11/boom-cbn-just-reported-it-has-floated-the-naira/

The website reverted back to its original form today , wrong Analysts speculation

https://www.bloomberg.com/news/articles/2019-06-12/nigeria-central-bank-quashes-talk-of-exchange-rate-policy-change

HeliosHay:


Lol. If the rate falls to 1% you're probably better off keeping your money abroad instead of investing in TB and risk losing ur shirt if the naira were to be devalued again.

Am not afraid of naira devaluation because my investment s are diversified. I have investments home and abroad.

kisszhira:


Can you give example of things that the prices have gone up because as far as i know,the prices of food items are even going down drastically.

I think rice when from 7000 to 15000 k that over 100 percent coke from 100 to 150 fuel from 87 to 145 nepa 16 to 28 per kilo watt

ahiboilandgas:
I think rice when from 7000 to 15000 k that over 100 percent coke from 100 to 150 fuel from 87 to 145 nepa 16 to 28 per kilo watt

And red oil went from 15k/25 litres to 5,500/25 litres. Local rice went from 9500 to 6000 and so many other food items

ahiboilandgas:
I really don't know when u started investing but rate have gone down to 7 percent around 2015/2016......in the financial world they called it lazy man bussiness ....inflation 12 percent tb 12 percent ..infact their was a time fixed deposits was even higher bank are smart they set up nice buildings with suited staff to collect cheap or free deposits at 0 to 4 percent the dump at 12.5 in tb and bond use 2.5 percent as runing cost then net profit over 8 percent ,they not much affected by inflation cos the investing capital is almost free .....imagine some one giving u 100 m with the probability he will only withdraw 5 m in the whole year ..u fix it at 12.5...u generate 1250000 u pay him 5 m and earn 7.5 ....used 1.5m to run the bank ,bank makes 5 million...share holders are happy

I am with you bro even though I do have some investment in TB in a personal capacity. You speak a lot of sense and take a holistic view. Kudos.

Let's be honest, the reason we want the rates to be as high as feasible is personal selfishness - not necessarily a bad thing IMO.

The TBill rate however, represents the minimum risk-free rate for investments in Nigeria so all other lending rates are referenced to it. Lower Tbill rates bring down overall lending rates which can only help to stimulate the economy.

That, to me and this is personal, is a far better outcome than some additional zeroes in my bank account.

Also, the true test of the TBill arena as a 'market' implies a relationship between demand and pricing. When a lot of money is chasing risk-free TBills, the interest rate should continually trend down. At some point, some of that money would drop away and go look for more productive returns. A very good thing, everyone has a point to make this decision, not 'wail at the moon' of previous high TBill rates.

Currently, entrepreneurs are suffering. Jobs are not being created. It is not sustainable.

kisszhira:


And red oil went from 15k/25 litres to 5,500/25 litres. Local rice went from 9500 to 6000 and so many other food items

Oga, stop telling lies. The price of local rice did not come down. In fact it rose from around 4k to 7k.

Grupo:


Oga, stop telling lies. The price of local rice did not come down. In fact it rose from around 4k to 7k.

I mean the unprocessed rice... The unpeeled ones that still have the chaffs/cover. Mind you,i just sold some storage i did few days ago...so i know what i am saying. Don't just jump and conclude that i am lying. I am not lying bro...

kisszhira:

I mean the unprocessed rice... The unpeeled ones that still have the chaffs/cover. Mind you,i just sold some storage i did few days ago...so i know what i am saying. Don't just jump and conclude that i am lying. I am not lying bro...

Are the general populace buying unprocessed unpeeled rice?

Grupo:


Are the general populace buying unprocessed unpeeled rice?

mmhhh...this your logic eh. What about cassava that also went down between 2015 and 2019. So,what do you have to say about the red oil too. The prices of yams too are cheaper compared to 2015... All these are food items needed by atleast the least of the common man in the street... Generally,the prices of food items that are "locally produced" have really dropped compared to 2015. You can hit the street and do more findings bro...

The only problem is there is no money in circulation to buy them... People now work harder with little to show for it...so at the end of the day,despite the prices of things being cheaper compared to 2015, there is little or no money to buy them...

kisszhira:


mmhhh...this your logic eh. What about cassava that also went down between 2015 and 2019. So,what do you have to say about the red oil too. The prices of yams too are cheaper compared to 2015... All these are food items needed by atleast the least of the common man in the street... Generally,the prices of food items that are "locally produced" have really dropped compared to 2015. You can hit the street and do more findings bro...

The only problem is there is no money in circulation to buy them... People now work harder with little to show for it...so at the end of the day,despite the prices of things being cheaper compared to 2015, there is little or no money to buy them...

Seems like you don’t live in Nigeria. Your talking absolute nonsense.

kisszhira:


Can you give example of things that the prices have gone up because as far as i know,the prices of food items are even going down drastically.

All Nigerians know that price of commodities have doubled between 2015 and now, may be because you ain't based in Nigeria that's why you don't know, check prices of building materials btw 2015 and now for example, fuel, soft drinks, car, bread, just to mention a few

Guys please no arguments also let's be careful with out utterances. We are here to advise and support one another.

chigo4u:




Seems like you don’t live in Nigeria. Your talking absolute nonsense.

chigo4u:

Seems like you don’t live in Nigeria. Your talking absolute nonsense.

ok... I get,you that live in Nigeria. Weldon sir... No need to drag this matter too long. Believe anything you want

chigo4u:

Seems like you don’t live in Nigeria. Your talking absolute nonsense.

You hit the nail on the head, he doesn't live in this country

SaintUlot:
Between year 2015 till now, price of commodities in Nigeria have generally increased by a minimum of 125% due to hyper-inflation. Is locking money in treasury bills still a good investment choice with this inflation trend in Nigeria? Please i need expert opinion on this. Thanks

I still need someone to shed more light on this for me

SaintUlot:


I still need someone to shed more light on this for me

Most of us leaving money in tbills are doing so because we don't have other viable business ideas or even the time to run a business.

So, if you have time and ideas, you may choose to let tbills be.

SaintUlot:


All Nigerians know that price of commodities have doubled between 2015 and now, may be because you ain't based in Nigeria that's why you don't know, check prices of building materials btw 2015 and now for example, fuel, soft drinks, car, bread, just to mention a few

I think this inflation thing is somehow relative. I agree with you,in terms of things like cars,bikes,tricycles etc (probably because most of them are imported),the prices have doubled no doubt... Buh in terms of food items(which are locally produced),a lot of food items are a lot cheaper compared to their prices as of 2015.

kisszhira:


I think this inflation thing is somehow relative. I agree with you,in terms of things like cars,bikes,tricycles etc,the prices have doubled no doubt... Buh in terms of food items,a lot of food items are a lot cheaper compared to their prices as of 2015.

It's not black and white.

Ultimately, the price of petrol has increased

So, although a lot of unfinished goods may not have increased in price. I expect that the price of finished goods would have increased in price given that they've undergone processing (requiring the use of petrol to fuel generators for power supply for e.g.).

Foods produced locally in Nigeria may still be cheap...but those imported won't be (due to fx difficulties). Producers higher up the value chain will have to pass down these costs to consumers one way or another.

kisszhira:


And red oil went from 15k/25 litres to 5,500/25 litres. Local rice went from 9500 to 6000 and so many other food items

While I will say it is depends on the area you leave or buy your stuff, if I am give the prices of these items based on where I stay I will say this particular statement is completely false. Where I leave, in town a 25ltr of Palm oil is sold between N11500-13,000. while in the suburban markets you can get it between N9500-10500. Also no local rice sells for N6500 around here not even for the 25kg bag... In the town markets, malls and stores it is sold between N16,000-N19000 while you will it is sold from N15,000.

freeman67:


While I will say it is depends on the area you leave or buy your stuff, if I am give the prices of these items based on where I stay I will say this particular statement is completely false. Where I leave, in town a 25ltr of Palm oil is sold between N11500-13,000. while in the suburban markets you can get it between N9500-10500. Also no local rice sells for N6500 around here not even for the 25kg bag... In the town markets, malls and stores it is sold between N16,000-N19000 while you will it is sold from N15,000.

I dont know where you stay anyway...but just try find out the prices in the East,Abia,Anambra or Ebonyi. As of 2015,we bought oil for storage at 6k least and price later skyrocket to even 25k per keg... Buh as i'm typing this now,i stored oil at 7500 and the price dropped to 5500 few days ago leaving me with a loss of 2k/keg.

2018,the price never went up above 9500,it was hovering between 7000 and 9200. This is unlike 2015/2016 that the price rose to 25,000/keg. Some even sold at N30,000/keg. Last year 2018,we just managed to recover back our capital due to the prices were crashing...


For the rice,2015 we bought at 5k,and we sold at 9500 but this year,we bought N5000 and sold at N6,500. This is after waiting endlessly for price to rise all to no avail...

kisszhira:


I dont know where you stay anyway...but just try find out the prices in the East,Abia,Anambra or Ebonyi. As of 2015,we bought oil for storage at 6k least and price later skyrocket to even 25k per keg... Buh as i'm typing this now,i stored oil at 7500 and the price dropped to 5500 few days ago leaving me with a loss of 2k/keg.

2018,the price never went up above 9500,it was hovering between 7000 and 9200. This is unlike 2015/2016 that the price rose to 25,000/keg. Some even sold at N30,000/keg. Last year 2018,we just managed to recover back our capital due to the prices were crashing...


For the rice,2015 we bought at 5k,and we sold at 9500 but this year,we bought N5000 and sold at N6,500. This is after waiting endlessly for price to rise all to no avail...

we are not farmers we are talking rice on the counter ready to cook

ahiboilandgas:
we are not farmers we are talking rice on the counter ready to cook

Hahaha... I get you brother. We are all making a point. However...these prices i'm calling are not "farm gate" prices... They are valid market prices...or you don't buy things from the market too ??

opiti:
Pls I jus need a quick reply if I invest 3m at the rate of 10% in 91 days .. how much will be my profit

It will be (91/365) × 10% of 3m. That 10% interest rate is per annum. Your 'cleaver' bankers will never tell you.

ahiboilandgas:
we are not farmers we are talking rice on the counter ready to cook

Lol

kisszhira:


Hahaha... I get you brother. We are all making a point. However...these prices i'm calling are not "farm gate" prices... They are valid market prices...or you don't buy things from the market too ??

yes but with u info I will start buying am been ripped off .....rice 6000k while I dey drop 15000 Abi my wife dey do bussiness for my head

ahiboilandgas:
yes but with u info I will start buying am been ripped off .....rice 6000k while I dey drop 15000 Abi my wife dey do bussiness for my head

Lol. Give your wife better money ooh,she might actually be right.... because where i stay presently(Abj),the prices are actually in line with the price you're calling. My arguments are actually based on the prices in the East. You know they have to move this goods to other parts of the country and they try to factor in the cost of transport,shop and other bills...and you know the consumers pay for all these things...

kisszhira:


I dont know where you stay anyway...but just try find out the prices in the East,Abia,Anambra or Ebonyi. As of 2015,we bought oil for storage at 6k least and price later skyrocket to even 25k per keg... Buh as i'm typing this now,i stored oil at 7500 and the price dropped to 5500 few days ago leaving me with a loss of 2k/keg.

2018,the price never went up above 9500,it was hovering between 7000 and 9200. This is unlike 2015/2016 that the price rose to 25,000/keg. Some even sold at N30,000/keg. Last year 2018,we just managed to recover back our capital due to the prices were crashing...


For the rice,2015 we bought at 5k,and we sold at 9500 but this year,we bought N5000 and sold at N6,500. This is after waiting endlessly for price to rise all to no avail...

From your analysis, you are probably talking of when a dollar was 500+, and recession was our name. Stop using that as a yardstick for 2015, it was just a phase

[quote author=kisszhira post=79262092][/quote]

I guess you deal in consumable goods. I am a consumer so my assertion is based on what and how I buy the items. Before items get to the final consumer it passes through many phases so it incurs more cost. However, yes some prices may have reduced from what it was in 2016/17 but some prices remained there. While some fluctuates according to the season which is what may be happening to your oil and rice now but from a consumer like me I have not seen that 100-120% reduction like the increase. Some bread we were buying between 200-250 then is now N350-400. Fuel which is one of the major determinant in prices of goods and services was N97-87 but now it is between N143-145 as so has. Indomie super pack was between N50-60 is now N80-85.

For seasonal goods like Tomatoes I got a basked some 3 months back at N3,000 and 3 week after I was asked to pay N10, 000 for same basket.

SaintUlot:


I still need someone to shed more light on this for me

Truth is, it really isn't. In terms of real-world purchasing power, it's very possible that the returns on Tbills will actually be negative or at most in the 2 - 5% range (Nigeria's official inflation rate is 11.37%), but the logic is that it's better than nothing (leaving it in a savings account), and it's less risky than most businesses people will go into, especially; as someone pointed out, if you're not in a position to personally oversee a business due to time or location.

So it's a matter of your positionality and risk tolerance, ultimately.

It’s really not rocket science. Nigeria is powered by fuel price and an increase in fuel price affects both local and foreign goods, saying that the price of goods reduced from what it was before 2015 is just funny

30-Day T-Bills Yield Jumps 0.13% to 11.16%
https://businesspost.ng/2019/06/12/30-day-t-bills-yield-jumps-0-13-to-11-16/