How many discount houses in nigeria

You will agree with me that bond is not short term security since discount houses are primarily traded short term securities in the money market, but the truth is that discount houses in Nigeria are one of the financial houses appointed as dealers for government bond, by that, I mean federal government bond.

Therefore, in the event where there is an investment in government treasury security, the discount houses remained one of the key players in these transactions.

Another function of the discount houses is the management of liquid assets because the short term securities traded in the money market by discount houses are considered primarily as a liquid, and managing a large portion of liquid assets by the discount houses have actually support liquidity management.

This is achieved without a discount cost of treasury security. The discount houses have been known for providing services for assets management, and the discount houses are rendering these services actually with a bias, and that bias is for the money market, as well as for treasury securities. Unlike other financial institutions, the discount house does offer, as I said earlier, some services that directly impact on the generality of the Nigerian public. With over 1M unique users per month across all channels , we have a large audience for you to showcase your products and services.

Apply for Freelance writing jobs in Nigeria. Do you have a press release, breaking news, or any other helpful information to share with our growing readers? Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email. Notify me of new posts by email. InfoGuide Store Dismiss. Information is Power! Don't miss any valuable information or opportunity that can change your life, business, family positively and permanently. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us. Related Articles. Leave a Reply Cancel reply Your email address will not be published. Check Also. Revealed: Why is the Naira falling?

September 22, Basically, they are financial institutions saddled with the responsibility of discounting, trading, and negotiating bills. In addition to this, they also contribute to the growth of the Nigerian Economy, through the money market. Furthermore, the transactions of a Discount house, mostly, are always on a large scale basis.

This is with transactions such as Bonds and Treasury Bills. Basically, discount houses have the responsibility of acting as intermediaries when it comes to money market transactions. They act as intermediaries to people transacting in the money market.

Basically, between lenders and borrowers. As we have earlier stated, one of the responsibilities of the discount house is to trade. They trade basically on instruments and securities.

And since they are well-grounded in the money market, they have been able to live up to their full potential in this aspect.

This makes them the main dealer of treasury securities in Nigeria. This authority allows them to purchase treasury securities on behalf of their clients in the money market.

Another key responsibility of Discount house is to train its personnel. These pieces of training prepare each member of staff to carry out money market transactions with no hassle.

Although Discount house are known to basically trade short-term securities, but, the fact is they are also involved in the secondary market. This is because they deal with government bonds, which belong to the secondary market.