Treasury Bills In Nigeria

[Admin]

The treasury bills used to be very robust and rewarding for investors, but now, that has changed. The Central Bank of Nigeria reduced the return on treasury bills investing by more than 80 percent and people are not happy about it.

The Nigeria stock exchange has been losing money for a long time and treasury bills are the only hope for investors. T-Bills used to return up to 14 % annually for investors but that has bee scrapped by the Nigeria government

According to people familiar with the mater, The bank lowered the 91-day rate to 2.49 percent from 3.00 percent, the rate for the 182-day bill was reduced to 3.78 percent from 4.00 percent, while the rate for the 364-day bill was cut down to 5.3 percent from 5.70 percent.

 

[Admin]

Well now that the coronavirus is affecting the economy, maybe now the federal government will increase the T-Bill rate.

 

[Admin]

The treasury bill interest rate is very low right now. We bought some via GTB, but now it’s not as valuable.

 

[Admin]

What is your take on the Nigeria Treasury bills? It used to be a robust investment for investors, but now, it not as attractive, the rate is so low that it's not worth it.


You can find the Nigeria Treasury Bills Daily rates on this link

 

[Admin]

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Check out the prices of the Treasury bills in the year 2013.

 

[Admin]

Treasury Bills! Why It Is The Best Investment at that time:

A lot of people have been asking for some time what T-bills are all about and where they could buy the bills from,

This thread is dedicated for all issues related to Treasury Bills, their going rates, when Auctions are due and why they should be bought,

I am not a Finance person, am just a trader who was lucky to work in one financial institution years back so I might not be the best person to answer questions on this as they come, But am sure we have a lot of financial gurus with CFAs in this Forum and all our questions would be answered,

 

[Admin]

2020 treasury bills prices

 

[Admin]

You can make money bu investing in Treasury bills, make sure you ask your bank. They will tell you how to get started and you can make a lot of money.

 

[Admin]

Where can I buy Treasury bills in Nigeria?


You buy by directly from the Central Bank or through your bank?

 

[Admin]

Everything you need to know about Nigeria Treasury Bills


Product Description

• – Short term negotiable bill of exchange.
• – Used by Governments to help finance national borrowing requirements
• – Quoted for purchase/sale in the secondary market on an annual percentage yield to maturity.
• – Issued at discount.

Product Features

• A tenured investment account with a specific amount invested at an agreed interest rate and tenure. At the end of the agreed period (tenure), and based on your instructions, the investment can either be re-invested or returned to you with the interest.
  amount earned.
• – Interest is paid upfront.
• – Short term debt instrument.
• – Issued at zero coupon rates i.e. no interest paid during life-cycle of the bill.
• – Issued in fixed tenures i.e. 91 days, 182 days and 364 days.
• – Primary dealers or investment bankers may underwrite it.

Benefits

• – T-bills qualify as liquid assets for the purpose of liquidity ratio computation.
• – Used as collateral securities for repurchase transactions
• – Interest received not subject to tax
• – Repayment guaranteed at maturity
• – Interest rate and tenure is subject to customer’s preference.
• – Interest with principal can be re-invested immediately after the end of the agreed tenure.
• – Interest received is not subject to tax.

 

[OmoAlaji]

Last year the Nigerian CBN cut the rate of return on the Treasury bill, this year the rate stays the same. This is nuts as it is.

 

[OmoAlaji]

If you are looking to invest in the treasury bill this year, this is the rate for the year 2022.

 

[OmoAlaji]

Growth Stocks:
Growth stocks are issued by companies that are expected to have high earnings

Value Stocks:
Value stocks are viewed as undervalued in the market, but investors see potential.

Income Stocks
Income stocks often are blue chip stocks from well-established companies.

 

[Adewale Stock]

Latest Treasury Bill Yields.
They are going up but inflation is eating up any returns. Inflation is here and we have the new numbers that the Central Bank is proposing for treasury bill investors. With inflation, this is really a loss.


You may have to log in to see the large image of the post below.

91 days rate is - 1.74 %
182 Day rate is 3.00%
364 Day rate is 4.79%

 

[Adewale Stock]

IMPLICATIONS OF MPC RATES FOR BANKS

1. Cost of funds will increase due to increase in deposit rates
2. Value of financial assets holding will fall due to increase in yield
3. Reprisal of maturing assets in line with the new interest rate regime, while new risk assets will be priced appropriately.
Overall, it is a good thing for our economy at this time as it may strengthen the local currency since more Foreign Direct Investors will channel flows to our country given the improved returns on investments. The increase in policy rate is long overdue as most economies of the world have also increased benchmark rates including United States of America.