Certificates of Deposit

This product offers a fixed interest rate on deposits for a fixed tenor. Access to the funds is restricted until the maturity date of the investment. CDs are insured by the NDIC up to N500k per individual.

Treasury Bills & Bond Notes

This product offers attractive yields to clients by matching their investments to underlying securities such as FGN Treasury Bills and Bonds held in the Bank’s. The investments are free of withholding tax and can be pre-liquidated with no penalty when funds have spent over 75% of its tenor.

Open Buy Back and Reverse Open Buy Back

This product is typically used to raise short term capital. It is a form of borrowing using Federal Government securities as collateral. It is an open-ended transaction with both parties maintaining the right of liquidation or a roll-over without prior notice within trading hours of the day.

Repos & Reverse-Repos

This product is typically used to raise short term capital by selling securities and repurchasing them within a specified contract tenor. There is an agreement to exchange securities for cash and then repurchase at the expiration of the agreed tenor.

High Yield Notes

This product offers attractive and competitive interest rates for Dollar fixed deposits by investing in a pool of secure high yielding assets. The product offers more flexible tenors compared to Eurobonds while offering similar yields to clients.

Currency Swaps

This is the simultaneous sale and purchase of one currency against the other currency at different value dates (spot and forward) at predetermined rate. It can be used to re-dominate a loan from one currency to another to hedge against exchange rate fluctuations and reduce the uncertainty of cash flows.

Forward Discounting

This product is useful for clients who need to make payment immediately on a transaction but have CBN FX forwards that are yet to mature. The forwards are converted to Spot at an agreed price- Forward points. This product is available for forwards up to a maximum tenor of 150days.

FX Spot & Forwards

This product provides clients access to Foreign Currency (FX) to fund their FX obligations- Import financing, Foreign fund remittances, etc. Clients’ FX bid are presented at the CBN Retail auction and allocated FX Spot and Forward. Other sources of FX are the CBN Wholesale, SME, Invisibles, Interbank and the Investors & Exporters window.

Treasury Bills

We offer clients the opportunity to invest in Treasury Bills- short term sovereign debt instruments with a maturity of one year or less. These bills are the most liquid money market securities as they are backed by the Federal Government. They are issued at a discount with interest taken upfront. Interest earned is free of withholding tax.

Sovereign Bonds

We offer clients the opportunity to invest in Sovereign Bonds- long term debt securities issued by the Debt Management Office (DMO) on behalf of the Federal Government with a maturity of one year or less. These bills are the most liquid money market securities as they are backed by the Federal government. Interest income is usually paid bi-annually in the form of coupons. The coupons are not subject to withholding tax.

Corporate Bonds

These are debt instruments issued by companies to raise more capital. They usually offer a higher interest or coupon compared to their sovereign counterparts due to the increased risk. Interest income is usually paid bi-annually in the form of coupons. The coupons are not subject to withholding tax.

Euro Bonds

These are bonds denominated in a currency other than the home currency of the country or market in which it is issued. We offer clients the opportunity to invest in Sub- Saharan Sovereign bonds and Corporate bonds at attractive yields.

Commercial Papers

These are unsecured short-term debt instruments issued by a corporation to generate capital to meet short-term liabilities. The paper is usually issued at a discount to the face value and is reflective of prevailing market interest rates. Maturities usually average 270 days

Promissory Notes

These are financial instruments containing a promise from one party (the note’s issuer/maker) to pay another party (the note’s payee) a definite amount of money either on demand or at a specified future date.

Securities Settlement

This involves the settlement of Government securities trades- Treasury Bills & Bonds, on behalf of brokers at a fixed cost of 0.024% on the volume traded or 10% on the profits.

FX Forward Contracts

This product enables clients plan their future cash flows and hedge against interest rate movement. The Bank provides a forward rate today at which Dollars can be purchased in the future.

Total Return Swaps

This is a swap agreement in which one party makes payment based on a set rate – fixed or variable, while the other party makes payment based on the return of an underlying asset- both the income generated by and the capital gains on the asset. The reference asset is usually owned by the party receiving the set rate.

FX Derivatives

This is a contract to buy or sell Foreign Currencies or commodities at a specific price at a future date. The contract could be in form of Forwards, Futures or Options.  This product enables clients to hedge against price risks and lock in their costs.