- Advertisement -
This article explores the key differences between Treasury Bills and FGN Savings Bonds in Nigeria. Many Nigerians have expressed a strong interest in understanding how these two government-backed investment instruments compare in terms of safety, returns, maturity period, and accessibility.
TJ News Nigeria report that this detailed guide on Treasury Bills vs. FGN Savings Bonds in Nigeria: Which Should You Invest In? was developed to help investors make informed financial decisions based on their goals and risk appetite.
Whether you’re a beginner looking to start small or a seasoned investor seeking capital preservation, this article provides clear insights into which option may be more suitable for you.
- Advertisement -
What Are Treasury Bills?
Treasury Bills (T-Bills) are short-term debt securities issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government.
- Tenors: 91, 182, and 364 days.
- Interest Payment: Discounted upfront (you buy below face value and receive full amount at maturity).
- Minimum Investment: ₦50,000 (via primary auction).
What Are FGN Savings Bonds?
FGN Savings Bonds are longer-term retail bonds issued by the Debt Management Office (DMO) monthly to attract small-scale investors.
- Tenors: 2-year and 3-year fixed terms.
- Interest Payment: Paid quarterly into your bank account.
- Minimum Investment: ₦5,000 (in multiples of ₦1,000 up to ₦50 million).
- Sold via: Licensed stockbrokers and online bond platforms.
Treasury Bills vs. FGN Savings Bonds: Key Differences
| Feature | Treasury Bills | FGN Savings Bonds |
|---|---|---|
| Issuer | Central Bank of Nigeria (CBN) | Debt Management Office (DMO) |
| Tenor | 91, 182, or 364 days | 2 years or 3 years |
| Interest Payment | Paid upfront as discount | Paid quarterly (every 3 months) |
| Minimum Investment | ₦50,000 (CBN auction), lower on secondary | ₦5,000 |
| Access | Via banks or brokers | Via stockbrokers or online platforms |
| Risk Level | Virtually risk-free | Virtually risk-free |
| Tradability | Tradable on secondary market | Not very liquid; tradability is limited |
| Target Investor | Short-term savers, corporates | Retail investors, fixed-income seekers |
| Tax Treatment | Subject to withholding tax (WHT) | Interest is taxable |
| Investment Platform | Banks, mobile apps, brokers | DMO-approved brokers, stock trading apps |
- Advertisement -
Which Yields More in 2025?
TJ News Nigeria learnt that in 2025:
- Treasury Bills yields currently range between 9% to 13% per annum (based on auction results).
- FGN Savings Bonds offer:
- 2-year bond: ~11.0% per annum
- 3-year bond: ~12.0% per annum
Yields vary monthly based on prevailing interest rates and inflation.
When to Choose Treasury Bills
Consider Treasury Bills if you:
- Advertisement -
- Need a short-term investment (3–12 months)
- Want your interest upfront
- Prefer secondary market liquidity
- Have access to ₦50,000+ or use platforms offering secondary market options (e.g., Cowrywise, Bamboo, or your bank)
When to Choose FGN Savings Bonds
Choose FGN Savings Bonds if you:
- Prefer steady quarterly income
- Can tie your money for 2–3 years
- Want to start small (₦5,000)
- Are a retail investor with a longer investment horizon
How to Buy Treasury Bills
- Visit your bank or use investment apps (e.g., Stanbic IBTC, Cowrywise, or ARM).
- Fill out a form before CBN auction.
- Monitor auction results (bi-weekly).
See our full guide: How to Invest in Treasury Bills in Nigeria
How to Buy FGN Savings Bonds
- Visit a licensed broker (e.g., CSL Stockbrokers, ARM Securities, Stanbic IBTC).
- Or register on an online platform (e.g., Chaka, Wealth.ng).
- Subscribe during the monthly window (usually 1st–3rd week).
- Receive bond certificate and interest quarterly.
To track FGN Bonds, visit the DMO portal: https://www.dmo.gov.ng
Summary: Which One is Best?
| Goal | Best Option |
|---|---|
| Short-term parking of funds | Treasury Bills |
| Small retail investor | FGN Savings Bonds |
| Quarterly interest payments | FGN Savings Bonds |
| Liquidity (easy to resell) | Treasury Bills |
| Higher flexibility | Treasury Bills (via banks) |
| Passive long-term income | FGN Savings Bonds |
Expert Tip
You don’t have to choose one—diversify. Allocate some funds to Treasury Bills for flexibility and others to FGN Savings Bonds for steady returns.
- Advertisement -
