Azeez Lawal permit me to share these insights, from your piece. As Treasury Bills investment option fades in Nigeria, we are learning how one policy can change markets. Yes, the decision to reduce rates on TB has opened huge moments for stocks. Today, Nigerian stock exchange is raking it, returning 10.34% so far in 2020! That is huge for 12 days of trading.
“Mr. A (Investor): I have transferred N2 billion to your corporate account, kindly help me place it in a fixed deposit at 11% for 360 days.
Bank/Fund Manager: Thank you for the transfer, however, we will return your money before close of business today, the maximum we can do is 2%.”
Can this get more startups to list in Nigeria? Jumia may be doing better in Lagos than the paralysis in New York! Yet, it is still early in 2020 to make any call. But one thing is evident – low yields on TB is the best gifts stockbrokers can get in the New Year.
Click to join Tekedia Capital and build Next Africa with min of $10,000 co-investment in startups.