At the treasury bills auction on October 12, 2020, the Debt Management Office (DMO) sold N12.76 billion on the 91-day paper, N4.5 billion on the 182-day, and N107.6 billion on the 364-day bill with Investors still demanding more be sold.
Now, just in case all of the above sounded strange to you, here’s some context.
What are Treasury Bills?
Treasury Bills commonly called “T-Bills” are short-term debt instruments issued by the Federal Government of any country through its Central Bank to raise short-term loans from the general public which includes private individuals, institutional investors, non-governmental organizations, religious bodies etcetera.
The funds are raised for the purpose of financing government budget deficit. In Nigeria, T-Bills are issued by the Central Bank of Nigeria (CBN). T-bills have a naira value of a certain amount called face value, which is what they are actually worth. However, they are sold for less which means a bill worth N5,000,000 may be sold for 4,900,000. These bills have a specified maturity date, which is the time you receive the money-back, in the full price of the bill which is N5,000,000. This difference is profit to you but it’s called a discount rate and is usually set in percentages.
These percentages over the years have been on a continuous plateau with the most recent being at 2%. More interesting about the recent T-bills auction is the huge difference between the subscriptions and the offers recorded which suggests that investors are willing to earn at almost close to nothing. The top reasons for this absurdity being that:
1) Interest earned on T-bills is absolutely tax-free and;
2) T-bills are zero-risk investments because they are backed by the full faith of the government insomuch that the CBN will have to mint new currency to settle T-bill owners if the government cannot pay. It is that secure.
Unarguably, we can see that the interest rates for T-bills currently are not even at par with the country’s inflation rate of 13.22% as of August 2020. So why not invest in something with a guarantee to yield you a higher return on investment, with less risk and continuously appreciating in value?
Properties owned and developed by Veritasi Homes and Properties over the past three years have seen an incremental spike in value by over 80%, bringing tremendous value to investors and to the company as well.
Our properties are sited at vantage points that are surrounded by strategic landmarks, buildings and commercial hives. Buildings developed by us are made with the finest of materials and finished to taste while the estates bear modern comfort and aesthetics as hallmarks.
All of these, make real estate development by veritasi homes a choice for many, a high demand which has triggered a rise in the value of our properties. So now it behooves you to answer the ultimate question:
Would you rather earn 2% on your investment for a year or choose Veritasi? The choice is yours, make it.
As you make the right decision, our phone lines are always open on 080-xxx-xxxx. Put a call through and Ese will give you a detailed guide on how to earn over 80% returns on your investment in one year.
Remember: Zero-risk is No-risk and No-risk is Zero-reward!
