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Kalu Aja

@FinPlanKaluAja1

27 Nov

(i) Youth within the age bracket of 18-35.
(ii) Have business/enterprises domiciled & operational in Nigeria.
(iii) Has not been convicted of any financial crime in the last 10 years.
(v) Has a valid BVN
(vi) Possess Local Government Indigene Certificate(1)

Applying as a Business

(i) Registration with the Corporate Affairs Commission (Certificate of Incorporation & Form CAC 2A);
(ii) Business questionnaire;
(iii) List of Directors with BVN nos.;
(iv) Evidence of regulatory approvals
(v) Tax Identification Number (TIN).

Who CANNOT apply

Applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF) & Agribusiness/Small & Medium Enterprises Investment Scheme (AgSMEIS) loans that remain unpaid, are NOT eligible to apply.

Read 9 tweets

Kalu Aja

@FinPlanKaluAja1

22 Nov

Recession? What does it mean?

Imagine a bakery making Agege bread, They buy

Flour
Sugar
Yeast
Pay salary
Pay taxes
Deposit cash in bank, banks use that deposit and creates loans.

An econony built by Agege bread

Ioaf cost N50, output 1000 so "GDP" is N50 x 1000 =N50,000

Then crisis, and people lose jobs.

Instead of buying one Agege bread and day, they buy one every two days..

So bakery sells less bread, instead of 10,000 loaves they sell 5000

So "GDP" is N50 x 5000 = 25000

A 50% fall in output of Agege bread

What happens? Well less Agege bread output means

less flour bought
less sugar bought
Less salary paid
Less cash deposited

So Agege industry states to infect other sectors like banking.

Those sectors also cut down on spending, pay less workers...a vicious cycle starts

Read 6 tweets

Kalu Aja

@FinPlanKaluAja1

21 Nov

I stumbled upon this case...

United Capital Trustee v FIRS, very interesting...

In summary, United Capital (UC) paid dividends to parent coy in excess of total profits. FIRS thus invoked Sec 19 of Corporate Income Tax Law to claim tax on that excess distribution.

please read.

UC in their defense said they relied on an "exemption order" issued by the President of Nigeria called the Companies Income Tax (Exemption of Bonds and Short Term Government Securities) order 2011

UC and FIRS went to the tax appeal tribunal, this tax even followed a review of books from 2011 to 2016.

The Tribunal held that "Executive Orders are inferior to the Corporate Income Tax Law...."

Interesting

Read 5 tweets

Kalu Aja

@FinPlanKaluAja1

19 Nov

Let's use this offer to talk about Bonds

1. Issuer: this means the person you are lending your cash to in return for the paper called the Bond.

With Bond the KEY RISK is the Issuer.

A Venezuela Bond is more risky than a Bond issued by Switzerland.

Get my drift?

Sponsor: this is the financial house packaging the bond on behalf of the issuer

Securities and Exchange Commission registers and regulates these Issuing houses.

Program Size: this is the TOTAL amount authorized by the issuer to raise via bonds.

Issue Size: This is how much the Issuer/Sponsor are now offering to investors from that Program Size.

Read 16 tweets

Kalu Aja

@FinPlanKaluAja1

16 Nov

Folks, once someone makes you a financial promise e.g. "invest and earn x% guaranteed" he is selling you a BOND

No matter what its called....cryptocurrency, equity, farm etc, that promise becomes a BOND

(A bond is simply a paper given to you when you lend money to some)

BOND have 4 key characteristics

1. They have a promise to repay, mostly supported by a Sinking Fund

2. They state if they are secured by collateral or if they are naked....

3. They state clearly what the cash being raised is to be used for.

4. They are registered

So when you want to invest ask the Bond issuer..

A. How will you repay? Sinking Fund?
B. Collateral?.
C. Where is the written document that states usage?
D. Where is it registered?

Read 4 tweets

Kalu Aja

@FinPlanKaluAja1

1 Nov

New month....

This month I want to try something new.

This book "richest man in Babylon is the DNA of all investment and personal finance books...I will attempt to serialize a part of it

#FinPlanBooks

Seven Cures for a Lean Purse

1st Cure: Start Thy Purse to Fattening

Arkad recognizes the great benefit of paying oneself first out of all income. The recommended amount is not less than 1/10 of all earnings.

Me: When you earn save at least 10%, then invest it.
#FinPlanBooks

2nd Cure : Control Thy Expenditures

Arkad explains that “what each of us calls ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary’.

Me: Live within your means. Spend less

#FinPlanBooks

Read 12 tweets

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