NewStats: 3,264,135 , 8,182,740 topics. Date: Monday, 09 June 2025 at 08:08 PM 29526y

USA2019:
It depends on the bank and available rates. I've always held my investment to full term.

Okay 👍, but is there any significant difference . Can you just give me an idea what both rates look like for any bank you’ve good idea of

USA2019:
That's the approximate primary market rate, according to the last auction results that you ed. Most banks' secondary market rates will be lower than that. I think Stanbic IBTC has one of the best secondary market rates available. GTBank is dwindling in their services, I'll advise you to avoid them if possible.

Thanks for the clarification…

Pls In percentage , what kind of spread usually exists between buying T-bills at primary rate versus secondary market rates ?

digitalinvestor:
This is not to further confuse you!
Another way of looking at true yield from a layman's perspective.

The true yield of 24% is derived from the actual principal invested of #40,500,000 * 24% = #9,7m excluding fees and taxes.

NB: For true yield, the figure we are looking at is your #40.5m and not #50m.

However, the detailed and technical explanation of how true yield is derived has been broken down by @NL1960.

Thanks for clarification .. pls what is the difference between the secondary and primary market also in of rates .

NL1960:


Lesson 1

I = PTR/(Year * 100)

I = Interest
P = Principal
T = Tenor
R = Interest Rate
Year = Days in Year = 365 (366 if a leap year)

In your post we have:

P = 50m
T = One Year(365)
R = 19%.

I = (50m * 365 * 19 ) / (365 * 100)

I = 346,750,000,000/36,500

I = 9,500,000.

So if you invest N50m at 19% for one year, you immediately get an interest of 9,500,000. This is called upfront interest.

So you give the government, N50m and they give you back 9,500,000 immediately meaning the bank will debit you for N50m and credit you with 9,500,000.

So if you check your , you will see 9,500,000 there.

This effectively means that you gave the government N40,500,000(N50m - N9,500,500)

Now at what rate did you actually give this N40,500,000 to government?. This is what is called the True Yield

Lesson 2

We need to now find the rate at which you gave the government N40,500,000.

I = PTR/(Year * 100)

(I * Year * 100) = PTR

R = ( I * Year * 100) / PT

R = (9,500,000 * 365 * 100) / (40,500,000 * 365)

R = 346,750,000,000 / 14,782,500,000

R = 23.45679012345679

If you aproximate:

R = 23.46

R = 23.5

R = 24.

QED(Quod Erat Demonstrandum)

Thanks so much for the response and getting back to me.
Pls Which banks offer the 19.4% rate? I’d like to spread the funds and not use just one bank.
Also, can I reinvest the ₦9.5 million?

USA2019:
You'd receive approximately N9.7M (N50M * 0.194), less fees and charges, at the time of investment. The true yield is 24.5%, representing your total gain or profit on the principal when you reinvest the paid interest immediately upon receipt.

Thanks so much for the response and getting back to me.
Pls Which banks offer the 19.4% rate? I’d like to spread the funds and not use just one bank.
Also, can I reinvest the ₦9.5 million?

NL1960:


You will get N9.5m. The N9.5m will be given to you upfront. So effectively, you are giving the government N40,500,000 (N50m-N9.5m). At maturity, the government gives you N50m. So it is actually 24% on N40,500,000.

This whole thing just dey confuse me o. I no go lie, I still no understand how dem dey calculate that 24% return. From wetin I dey see, e no dey add up unless I dey miss something serious.

Maybe person wey dey work directly with Treasury Bills fit come explain am better

Everything for this country just dey

zigzag

Hello everyone, please I need help. I’m about to invest in treasury bills but I’m really confused.

I keep seeing 19% and 24% being mentioned here and there , and it’s not clear to me what the actual return is.

So here’s my question, based on the picture below:

If I invest 50m annually,
Am I getting:
₦12 m, which would be 24% return? (Yes or No?)

Or
₦9.5m, which would be around 19% return? (Yes or No?)

Please, someone with clear understanding of this should help me out. I need a direct answer. Thank you!

USA2019:
Offer: The amount the CBN intends to sell or puts on offer.
Subscription: The amount that people actually requested for.
Allotment: The amount the CBN finally issues and got.

Yield is the equivalent of the rate you get if your interest is paid at the end of your investment tenor (90-, 180-, 0r 364-day). The stop rate is the maximum (cutoff) interest rate that the CBN was willing to sell to bidder. Some bidders must have made bids below and some others above the stop rate, but he CBN only decides what rate they would not go beyond based on the various bids they received and the amount they want to raise. The stop rate is the equivalence of your annual interest rate that you'd normally get after your investment tenor. '

You must pick a definitive rate because the bank must specify to the CBN what rate they are bidding at--they cannot give a range.

So pls going by this


If I decide to invest 50 million annually

How much will be my profit then

I keep seeing 19.4% and 24.5% here , I am kinda confuse

,

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