1. Invest in CBN Treasury Bills
CBN Treasury Bills are government-issued debt instruments designed to fund capital projects. By investing in Nigerian Treasury Bills, you can enjoy guaranteed upfront returns, with your initial investment repaid upon maturity. The maturity periods typically range from 90 days, 180 days, to 365 days. We recommend the 365-day option as it offers the highest upfront return or cash payout.
Steps to Invest in CBN Treasury Bills Monthly Auctions:
- Register with an authorized dealer, stockbroker, or your bank.
- Fund your investment or savings account. Some platforms require a minimum of ₦1,000,000 or more.
- Instruct your bank or broker by filling out a mandate form and specifying the exact amount you wish to invest.
- Choose your payout method: upfront interest or capitalized. Opt for upfront interest to maximize returns before the T-bill matures.
- Once your instruction is processed, you’ll receive a debit alert, and the upfront interest will be paid within 7 days.
The interest rates on CBN Treasury Bills fluctuate based on the government’s cash needs. When the federal government requires funds for urgent capital projects, it often offers higher rates to attract investors. Over the past 2-4 years, rates have ranged from 17% to a peak of 27.25% in 2024.
Smart investors use Treasury Bills not to spend the returns but to preserve capital while maximizing returns from high-yielding investments like Nigerian stocks.
This strategy involves reinvesting the upfront interest from Treasury Bills into the Nigerian stock market to maximize returns over the same 12-month period as the Treasury Bill.
For example, if you earn a 20%+ upfront interest on an initial capital of ₦5,000,000 (after deducting WHT and charges), you could have approximately ₦995,000 as upfront interest income. This amount can be strategically invested in fundamentally sound but oversold stocks, allowing you to maximize short-term returns while mitigating risk.
Key Takeaway: Invest in fundamentally sound oversold stocks, not just fundamentally sound stocks.
Not all fundamentally sound stocks are oversold. This strategy focuses on identifying solid stocks with strong track records that have been undervalued for weeks or months without justifiable reasons. By purchasing these stocks at bargain prices, you position yourself to benefit when they resume their upward trend.
Examples:
- Fidelity Bank: A solid banking stock that dropped from ₦14 in January 2024 to an oversold range of ₦8-9. CoachOge recommended buying at ₦9-10, targeting ₦14. Within 3-4 months, the stock delivered a 50-60% return.
- Nascon: In January 2023, this consumer goods stock was oversold at ₦10. CoachOge recommended it, and within 3-4 months, it delivered strong returns.
This model is taught in the Globfolio Elite Trader Course, which provides insights into identifying and capitalizing on such opportunities.
