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Treasury Bills in Nigeria 2020




Treasury Bills in Nigeria 2020

Treasury Bills are financial instruments issued by the government when in need of money for a short period. It has a tenor ranging from 91 to 364 days and is always issued at a discount. The treasury bills in Nigeria are also used as a method of controlling money supply in the economy by CBN.

The CBN usually conducts an auction every fortnight where these treasury bills are sold. Investors are then requested to quote the rates they are willing to pay for different tenors ranging from 91-day to 182-day or 364-day. The CBN chooses the investors that quote at or below the STOP RATE, which is the maximum rate they are willing to sell.

Treasury Bills in Nigeria 2020

Treasury Bills in Nigeria 2020

Where to buy Treasury Bills and the Minimum Amount You can Buy

There are various official dealers/Agents/Banks that one can buy Treasury Bills from. Buying via Banks’ Treasury Bill mobile application is the easiest way these days. The Sterling Bank’s mobile application, i-invest is a typical example.

The Federal government has increased the price of Treasury Bills from N10, 000 to a minimum of N50,000,000, This simply means that retail investors would not be able to participate in the primary market for treasury bills any longer. However, there is a way to buy treasury bills even if you do not have up to N50 million. I-invest mobile application can only take a minimum of N100, 000 though.

When Treasury Bills are usually sold:

The Central Bank usually put out announcements for the issuance on its websites and on the pages of national newspapers in the country. Treasury bills are sold on a bi-weekly (every other Wednesday) basis. Your bank can also notify you ahead of time through your bank account officer.

How to Buy Treasury Bills:

You can purchase Treasury Bills by approaching your bank and requesting a form. Fill the form with the required information and state the amount you want to purchase as well as your bid rate.

Though treasure bills are normally issued on paper bills, now they are being issued in electronic form. Buying from a mobile application is easier since all you have to do is fill a sign-up form once, online.

Treasury Bills Bid Rate in Nigeria:

The bid rate is also known as your STOP RATE and this is the interest rate you want to receive on the principal you are investing in the Treasury Bill. Having an interest rate of 10% means you would be expecting a 10% profit of your initial capital at the end of the day. Bid rates varies for each investor

Modalities for Selecting Treasury Bills Bid Rate:

The CBN chooses the investors that bid at or below the stop rate, which is the maximum rate they are willing to sell. The minimum average rate for bids is called the Marginal rate. If the marginal rate for a bid opened Wednesday 26 August is 12%, any bid that falls below this rate gets accepted and those that are above it get rejected.

What To Do If You don’t have a Bid rate:

Not having a bid rate is not a setback. If you are not sure or don’t even know a rate to choose, you can have your bank choose a bid rate for you. With this however, there is no guarantee that your bank will choose the best rate for you.

If Your Bid is rejected…

Buying Over The Counter (OTC) is also an option for those who still want to purchase treasury bills after their bid rate is rejected.

Durations (tenor) For the Treasury bills (TB’s):

Treasury bills are issued for a time period ranging from 91 days to a year. The Central Bank of Nigeria will hold your cash for the period you choose and you get return on your investment when due. Since the rates on the treasure bill is quoted annually, you only get a full rate if your tenor is up to 364-day

Selling Treasury Bills before Maturity:

Yes, it is possible to sell your Treasury Bills before it matures. Though this can be done only through the Over The Counter (OTC) market. The price at which you sell is dependent on the prevailing interest rate. For instance, buying a treasury bill at N100, 000 Face Value (FV), you can sell for more or less depending on the prevailing interest rate. If it (i.e. your FV) is trading at higher price, you can be sure of selling at a price of N101, 000 or more. On the contrary, If the trading price is low, you will sell your treasury bills at a loss, i.e. the N100, 000 can sell for N99, 000 or less.

Payment of Interest on Treasury Bills:

Interest on Treasury Bill is paid upfront and into your bank account. For instance, say you purchase a Treasure Bill worth N100,000 that has an interest rate of 10%, a debit of N90,000 will be made to your account, thereby an interest of N10,000 is paid up-front.

Treasury Bills True Yield:

The effective Return on Investment (ROI) is known as True Yield. From the example above, the yield for the N100,000 is 10%, this is called the initial yield. However, because your interest is paid up-front, the true yield is then the N10,000 interest received divided by N90,000 that was debited from your account. Solving out the maths, that is N10,000/N90,000 which translates to 11.11%. This new interest rate is higher than the 10% rate per annum. You only get the True Yield if you hold your investment until maturity.

Rolling Over Investment

Yes, it is possible to roll over your investment, though the Central Bank of Nigeria (CBN) does not do this automatically for you. What you need to do is inform your bank of the wish to rollover the principal on your treasury bill upon maturity. You can also consider reinvesting your interest with your principal sum once the interest is paid. This will give you the benefit of compounding interest.

Safety of Treasury Bills Safe:

Treasury bills are very safe form of investment. They are absolutely risk-free and are backed by the Federal Government of Nigeria.

Other Benefits beside the Interest Rates:

  1. The fear of risk is eliminated since this investment carries the guarantee of the Federal Government
  2. It is a great source of steady income.
  3. Treasury Bills are good investments plan for people looking to save.
  4. It is a form of Investment that is absolutely tax-free.
  5. Treasury Bills can be converted to cash quickly due to their high liquidity.
  6. Treasury Bills are highly liquid instruments. Therefore, they can be used as collateral.

Taxation on Treasury Bills:

The interests made from Treasury Bills are not taxable.


This article illustrated how to invest in Nigerian Treasury Bills market. It is a basic guide to investing in treasury bills for beginners and gives a concise explanation of what treasury bills are and how to invest in it. It provided useful tips on how and when interest is earned and paid to an investor in treasury bills in Nigeria. Finally, it outlined the benefits of investing in treasury bills in Nigeria.



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Business Ideas

Advantages And Disadvantages Of Franchising A Business




There are several advantages and disadvantages of franchising a business. This article explains them one by one. before I get into the full review, what does the term, franchising mean or what does it mean to franchising a business?

Franchising is defined as the practice of utilizing a brand for a given period with the intent of making profits. The proprietor of the business that is franchised is known as the franchisor while the individual or organization that gets a franchise is known as a franchisee. defines franchising as, “A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offer assistance in organizing, training, marketing, merchandising and managing in return for a monetary consideration. Franchising is a form of business by which the owner of the business [the franchisor], service, or method obtains distribution through affiliated dealers known as the franchisees.

Popular examples of franchised businesses in Nigeria include Chicken republic, Tantalizers, Mr. Biggs, Total, Forte Oil, Mobil, ABC transport, Ekeson, Mc Donald’s, Tranex, Nobel, Oando, Samsung, Tecno, IPhone, Infinix among others.

I have a case study article that explains one of the above-listed forms of franchise in Nigeria – fast-food franchising. It shows step-by-step how to start a fast-food franchising in Nigeria. Get the article here.

Now, let’s continue.

advantages and disadvantages of franchising business

Advantages and Disadvantages of Franchising a Business

Before you settle on what franchise you want to purchase, make sure that you comprehend or have a concrete understanding of the business and business model that you want to enter into. Choose a product that is highly demanded and spend time and energy to research on the product.Also, you should find out about the competition in the region and set sensible targets. Get a legal practitioner to look into the franchise agreement and hit the ground running rather than face the pressure and slip-ups of beginning a business off the ground.

In this article, I discuss some broad advantages and disadvantages which any intending franchisee considering a franchise agreement ought to take note of.

Advantages of Franchising a Business

(1) You Will Get Support from Your Franchisor

When you franchise a business, you stand a high chance of getting support from the franchisor. This support includes training, finance, funding, and discounts. Lack of support in dealing with public authority and other parties is one of the major problems that small business owners experience.

When your business is franchised, you will get a lot of support from the franchisor to deal with this.  Also, you will benefit from the economies of scale from the bulk purchase of materials thereby significantly lowering costs for your new business.

(2) You Will Spend Less on Marketing and Branding

As the real brand has already spread its products, you will spend less or even nothing on marketing your business. You are saved from the stress of coming up with a Brand Logo Idea, Flyers, Banners, Television commercials and other forms of advertisement as the real brand has already done all these.

(3) Employing Staffs May Be Easier

Most top quality staffs prefer to work for an established brand. As such, they apply for jobs in these brands more than in new businesses. If you franchise your business, the name of the brand will attract these staff to apply for jobs thereby giving you the opportunity to enlist from the best among them.

(4) It Is a Tested and Trusted System of Business

Over the years, thousands of people have franchised their business and did well. For you to choose a company as a franchisor, that company must be well-known and successful. If you are frail in sales and marketing, at that point franchising is the most ideal alternative as there is an instant market from the brand name alone that you are franchising with.

Disadvantages of Franchising a Business

Like any other business, franchising has its disadvantages, although the advantages are by far more than the disadvantages. I will balance this discussion by telling you the disadvantages of franchising a business.

Below are some major disadvantages of franchising a business:

(1)  The Start-up Capital is Expensive

Most franchises are very expensive particularly the more fruitful ones. Franchisors have norms and expect their franchisees to live up to them. From construction materials, machinery, raw materials, staff uniform, franchisors have high standards which the franchisees must live up to. For example, to set up a fast-food franchise, you need up to $750,000 which is equivalent to N285,750,000.

(2) You Are Mandated to Pay Stipulated Royalties

In return for the branding, advertising, and operations a franchisee has to make a yearly royalty payment to his franchisor. Irrespective of whether he benefits from these things or not, this royalty must be paid.

If the franchise is foreign, the payment must be done in dollars or any foreign currency of the franchisor company. This opens franchisees to exchange rates problems and devaluation risks as the Nigerian currency has never been stable.

(3) There is No Secret in the Business

As a franchisee, you have to keep your franchisor updated about your developments. Therefore, they know when you are doing well and vice versa and based on this information, they might take certain actions for or against your favour.

(4)  Lack of Support

Though this is very rare, some franchisees suffer from lack of adequate support from their franchisor. This is because in some situations, brands decision must be taken to the head office before it is made or before approval is given. This slows down decision making.

(5) There is little or No Room for New Innovations

As a franchisee, you will be operating under a fixed template of the real brand. So if you like coming up with new ideas always, you better don’t opt for a franchise. In short, these are the major advantages and the disadvantages of franchising a business. Although there are other minor pros and cons, these are the major ones. By the time you have finished reading this article, I hope that you make a decision of whether to franchise your business or not. For a clear explanation on this concept, see by step-by-step guide on how to start a fast-food franchising in Nigeria.



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How to Buy Property in Abuja




Would you like to property in Abuja? If your answer is Yes, then come with me as I show you step-by-step how to go about this in just few easy steps! Nigeria as you know is a very rich country. Although generally bereft of good governance, the country is still a highly lucrative place to start a business and earn massively from it. There are different types of businesses one could do in Nigeria ranging from small-scale to large-scale businesses. One of the most exciting and big income earning businesses in Nigeria over the years is real estate business. This type of business generally depends on location for profitability. Having a property in Kogi or Osun can’t be compared to having it in Abuja.

Abuja is the capital city of Nigeria and is one of the leading, most-fast growing cities in Africa. It is till date one of the safest places in Nigeria and null of huge volume of traffic for which a city like Lagos is known for and which makes it (Lagos) dreaded to many people. Lagos might be the center of economy of Nigeria but Abuja is arguably the sanest city in Nigeria. Many Nigerians are investing in properties in Abuja for either businesses or pleasure. Whichever side of the divide you choose, there is abundant room for prosperity if you choose to buy property in Abuja any time from now. 

how to buy property in Abuja

How to buy property in Abuja

The Steps to Follow to Buy Property in Abuja

Getting a property in Abuja can be very tedious, well, what isn’t in Nigeria? Nevertheless, there are some steps to take before acquiring any property in Abuja. Let me give you an example of acquiring a landed property in the city. First, understand that land in Abuja belongs to the Federal Government of Nigeria and is controlled by the *FCT Minister. Allocation of land is headed by the Minister. There are 2 Agencies in charge of landed properties in Abuja and both are headed by the FCT minister. These agencies are The Federal Capital Development Agency (FCDA) and Abuja Geographic Information System (AGIS).

* “FCT” is an acronym for Federal Capital Territory.

The Federal Capital Development Agency (FCDA) and Abuja Geographic Information System (AGIS)

These two agencies are under the FCT Minister and although they oversee land management in Abuja, still have different and complete roles that they play.

The work of FCDA is to oversee the planning and expansion of the city and their main goal is to make Abuja a world-class City to live in while the AGIS oversees the allocation and distribution of land in Abuja.

The AGIS provides:

  1. Certificate of Occupancy,
  2. Rights of Occupancy,
  3. Land allocation application, and
  4. any other related services.

Although, Abuja land is owned by the Federal Government, it is generally divided into Public Land and Private Land.

The Public or Government Land is the land which is allocated by the government directly through AGIS while the Private Land is the land which has been allocated by a person or an organization.

When acquiring public property, it is important to know that there are two different kinds of properties in Abuja which are:

  • Government Acquisition Land, and
  • Government Committed Land.

In Government Acquisition Land, the land is opened for buyers as long as they go through the main and legal channel. But in Government Committed Land, the federal government reserves this area for future city development like building of Airports, Rail tracks, Roads, etc. Any building on this structure will be demolished and the owner of the property will be sued. To avoid this unfortunate situation, the buyer needs to confirm from the office of AGIS about a condition of the land in view – whether it is Government Acquisition Land or whether it falls under Government Committed Land and take necessary action or redress.

To buy a land in Abuja directly from the government, there are some applications to fill and follow step-by-step. The criteria required include visiting the website of AGIS and completing an online application process which include:

  • Completion of the downloaded application form with some details like name, age, address and contacts.
  • Citing what the property will be used for such as either hotel, church, mosque school etc.
  • Paying an application fee directly to the bank account provided by the AGIS, and
  • Presentation of evidence of payment through the bank receipt to AGIS.

Documents such as the Application Form, Driver’s License, Passport Photograph, etc. should be presented formally at AGIS.

After your application has been reviewed and validated, a piece of land will be allocated to you and acknowledged.

After all this applications, a Right of Occupancy (RoO) will be granted to the person from the government. It is important to convert the Right of Occupancy to Certificate of Occupancy (CoO) as early as possible. The processes to obtain Certificate of Occupancy can also be processed through the AGIS and this certificate gives the buyer the full ownership right of the landed property.

Related: How To Buy Properties In Lagos

Private Properties Acquisition

To acquire a private land in Abuja, the Certificate of Ownership of the seller which was given to him/her by the AGIS will be transferred to the new owner of the property upon purchase of the said property. The process to acquire private land differs from the one of public land. They are easier to acquire and they have a range of locations one can choose from personally unlike public in which government can allocate places that are underdeveloped or sparsely populated. Since a buyer will just be allocated a land straight from the government, the places are usually not what the buyer expected or will enjoy most times. Therefore, it is advisable to purchase an already registered property. This is the route many people go for.

Buying a private land is easier and quicker because all the steps required by AGIS will be skipped since they have been previously undertaken by the original owner of the land or property. Nevertheless, it is important to know that there are scams everywhere in Nigeria; therefore, one has to be very careful before purchasing a private land in Abuja. This is where Real Estate Agents, Surveyors and Property Lawyers come in to ensure that the land to be sold is genuine.

The property business in Abuja is big and lucrative and therefore, finding the best and genuine land to buy is always a great deal. One needs to engage the services of a Real Estate professional instead of family and friends. The estate professionals are vast in knowledge about Abuja land and therefore have real and genuine advice to offer unlike family and friends who might be limited in knowledge about landed properties’ acquisition in Abuja.

Related: How To Buy Property In Port Harcourt

Useful Tips for Buying Property in Abuja:

  • Do Necessary Preliminary Checks

It is important and of necessity to do some preliminary checks on the property before verifying the seller’s documents. Things to check include the neighborhood of the landed property, location, environment, security, and soil structure. These checks can be done by a Surveyor.

  • Conduct Legal Search to Validate Records

The next thing to do after confirming the location of the property and verifying the document is to conduct legal search. The legal search includes verifying the documents and making sure they are genuine and duly registered in the AGIS database. This can be done appropriately by employing the services of a registered lawyer to take a look at the documents for legality.

After everything has been verified and confirmed genuine, the property can be purchased and the ownership can be transferred to you.



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Venture Capitalist Firms in Nigeria You Should Trust




Venture capitalist firms popularly referred to as “VC” are mostly needed for small-scale services. They invest in people’s business and make sure it grows and brings a lot of profit. There are so many of Venture Capitalist firms in Nigeria and while some can be dangerous to ones business, there are others that can be very good and beneficial.

Examples of venture capitalist firms in Nigeria include Venture platform, SPARK capital, EchoVC Partners, Growth Capital Fund, SLA Accelerator LeadPath Nigeria, Lagos Angel Network (LAN), GreenTree Investment Company, Greenhouse Capital, Microtraction, to mention few.

Here is why some or all of these VCs are very good when it comes to investing with them. Some of the ones I list and explain below are what I deem to be the Venture Capitalist firms in Nigeria you should trust.

Venture Capitalist Firms in Nigeria You Should Trust

Venture Capitalist Firms in Nigeria You Should Trust

Top 10 Venture Capitalist Firms in Nigeria You Should Trust

The top 10 Venture Capitalist firms in Nigeria that I will be covering in this article are

  1. Venture platform
  2. SPARK capital
  3. EchoVC Partners
  4. Growth Capital Fund (GC Fund)
  5. Greenhouse Capital
  6. SLA Accelerator LeadPath Nigeria
  7. Lagos Angel Network (LAN)
  8. LeadPath Nigeria
  9. GreenTree Investment Company, and
  10. Microtraction

(1) Venture Platform

Venture Platform was founded by Kola Aina and their major role is to help start-up companies in Nigeria grow. The Company also extends its services and coverage to other parts of Africa which makes it a reliable company to consider when choosing a Venture Capitalist firm to invest in Nigeria. They have helped a number of startup companies to grow example of which includes Piggybank, MobileForms, Jalo, etc.

(2) SPARK Capital

SPARK Capital focuses on building companies mainly in Lagos and its founded by Jason Njoku. They have helped a lot of companies in funding and most of the companies include Paystack, OgaVenue, Drinks NG, etc.

Paystack Company was recently (2020) sold for 200 million dollars which improves the profit of SPARK Capital. Mostly, this venture capitalist receives 30% and more profit. Funding and making Paystack a global company to be sold at that huge amount suggests that they are a good company to invest with.

(3) Greenhouse Capital

Greenhouse Capital was founded by Venture Garden Group with the vision of becoming the biggest Fintech Company in the whole of Africa. It was founded in 2016 and they already have a strong stand when it comes to investment in business. They have helped popular companies from startups to established businesses to become a massive and major business to be reckoned with in Nigeria.

Examples of companies funded and helped by Greenhouse Capital include Flutterwave, Rensource, Riby, TalentBase and many more. Max NG is also one of the companies funded by Greenhouse Capital. Max NG is an okada business just like Opay. For Max NG to still be standing and operating well in Nigeria till date even with the emergence and disappearence of Opay’s Oride, it shows that the Greenhouse Capital is a strong Venture Capitalist to trust in starting and supporting of business.

Related: Why You Should Avoid Venture Capitalists And Angel Investors In Your Business

(4) Growth Capital Fund (GC Fund)

GC Fund just like other Venture Capitalists helps start-up businesses in Nigeria. They support innovative ideas and help to fund them. Their main purpose in funding businesses is building of infrastructure by using technology. Some of the companies that invest with Growth Capital are OMidyar Network, Bank of Industry, and Venture Garden Group. Remember that Venture Garden Group is the founder of another VC company called Greenhouse being discussed earlier. For a VC Company which is Growth Capital to fund Venture Garden Group which later founded another trusted VC Company is very remarkable and shows how strong and trustworthy they are.

(5) LeadPath Nigeria

Leadpath Nigeria company like other VC companies helps in funding other startup companies. But it’s not only startup companies that they fund. Any medium-sized company that is interested in more funding can also go to LeadPath Nigeria for funding.

They support majorly the growth of mobile technology idea and other software and web startup businesses. Leadpath supports with funds ranging from $25,000 to $100,000 for a start-up and several millions later as follow-up.

(6) GreenTree Investment Company

This, just like other investment companies also deal with start-up companies and invest in them to profit from them greatly. They provide a great framework for a company and also help in legal financial advice to the baby company. This company like also others have funded and invented in lots of companies and they were started in 2014. Examples of the companies being funded by GreenTree include Precurio and Big Cabal Media.

(7) Microtraction

Another example of a Venture Capitalist firm in Nigeria to trust is Microtraction. Microtraction also helps in funding of startup companies like others. Microtraction funds in billions of dollars which makes them a high funding company. It doesn’t take a fraud company to this stage of financially funding other businesses in billion dollars but a company that’s worth trusting when choosing a Venture Capitalist firm to invest in. They invest in ideas that are technology-driven and which are proven to be very smart.

Microtraction has funded a lot of popular companies in Nigeria which include Cowrywise, BuyCoins,, ALLpro, etc. Most of these new companies deal with bank-related businesses and cryptocurrencies. So, if you have an idea about developing a business that deals with saving money or any cryptocurrencies, Microtraction is the venture capitalist firm to trust.

(8) Lagos Angel Network (LAN)

Moving further on the list of Venture Capitalist companies to trust is Nigeria is Lagos Angel Network (LAN). This is also a Venture Capitalist firm that deals with startup businesses and they are very active in Africa. Angel investors are individuals or professionals that come together and raise funds and to invest in startup businesses.

Since being a professional angel investor gives one the idea of a business to grow or not to grow, this venture is definitely among the companies to trust when investing with them. They were founded in Lagos and in the year 2014. Also, they are based in Lagos State, Nigeria and have funded a lot of startup companies located mostly in Lagos. In short, they have funded dozens upon dozens of startup companies.

(9) EchoVC Partners

This is another Venture Capitalist firm you can’t even miss even if you want to. The name speaks volume because the tagline, “VC” is already incorporated into the company name. EchoVC Partners is a Nigeria company that has extended its tentacles to other part of the world like sub-Saharan Africa and North America. It has become an international company which has proved reliable over time. They also help startup companies and invest hugely in them. EchoVC has proved to be a leading Venture Capitalist around the world by investing in some popular companies which include Hotels NG, Care45, Lifebank, MyPadi, etc.

(10) SLA Accelerator

Honorable mention includes the SLA Accelerator which has helped young African women with funding in ensuring a successful career for them. This company has been featured in CNN, CNBC Africa, and other important news outlet in the world.

When looking for a venture capitalist to fund your business ideas, these are some of the best ones to always look out for and you will never regret it.



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