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This article is about how to invest in Treasury Bills in Nigeria. Many of our users, especially those living overseas, have asked how to buy Treasury Bills. Therefore, this article has been carefully crafted to address and resolve their queries.
Investing in Treasury Bills (T-Bills) is one of the safest and most accessible ways for Nigerians to grow their money while preserving capital. Backed by the Federal Government of Nigeria, T-Bills are short-term debt instruments with tenors ranging from 91 days to 364 days.
TJ News Nigeria reports that despite fluctuations in inflation and interest rates, Treasury Bills remain a popular choice for conservative investors, including individuals, corporations, and institutional fund managers.
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What Are Treasury Bills?
Treasury Bills are promissory notes issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government to borrow money for short-term funding needs.
- Tenors: 91 days, 182 days, and 364 days.
- Interest: Paid upfront as a discount.
- Risk Level: Virtually risk-free (government-backed).
Why Invest in Treasury Bills?
- Capital Safety – Guaranteed by the Federal Government.
- Predictable Returns – Fixed interest rate at the time of purchase.
- Liquidity – Can be sold before maturity in the secondary market.
- Low Entry Barrier – Minimum investment starts from ₦50,000 for CBN auctions.
How to Invest in Treasury Bills in Nigeria
There are two major channels to invest in Treasury Bills:
1. Through the CBN Primary Market Auction
This is the direct method, typically suitable for individuals or institutions with larger amounts (₦50,000 minimum, often ₦100,000+ to be competitive).
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Steps:
- Visit your bank (any commercial bank licensed in Nigeria).
- Request a Treasury Bill investment form.
- Indicate:
- Your desired tenor (91, 182, or 364 days).
- The amount you want to invest.
- Submit the form before the CBN auction deadline (usually Mondays or Wednesdays).
- Wait for auction result (CBN allots based on interest rate bids).
- If successful, your account will be debited, and you receive a CBN-issued confirmation.
Note: CBN uses a Dutch auction system, meaning rates are competitive and not fixed.
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2. Via the Secondary Market (Through Your Bank or Broker)
If you miss the CBN auction, you can still invest in existing T-Bills via the secondary market.
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Steps:
- Contact your bank’s treasury department or a licensed broker (e.g., Meristem, ARM, FBNQuest).
- Inquire about available T-Bills (tenor, yield, price).
- Place a buy order through your broker.
- Receive confirmation and custody details via your CSCS account or bank statement.
This method allows flexibility—you can invest smaller amounts and pick from existing maturities.
How Treasury Bill Returns Are Calculated
T-Bills are sold at a discount, and you earn the interest upfront.
Example:
If you invest ₦1,000,000 in a 364-day T-Bill at 10%:
- You’ll pay: ₦900,000
- At maturity: You receive ₦1,000,000
- Your profit: ₦100,000 (₦1,000,000 – ₦900,000)
When Are Treasury Bill Auctions Held?
CBN conducts auctions bi-weekly, usually on Wednesdays, with results released the same day. Settlement follows T+1 or T+2 days.
You can find auction schedules on:
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- www.cbn.gov.ng
- Your bank’s website or treasury desk
Requirements to Invest
- Valid BVN
- Active bank account (with sufficient funds)
- Government-issued ID (NIN, Driver’s License, etc.)
- Duly filled investment form (from bank or broker)
Tax Considerations
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Withholding Tax (WHT) may apply to certain investors (especially institutions).
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For most individual retail investors, T-Bill interest is typically tax-free.
Are Treasury Bills Taxable in Nigeria?
As of 2025, interest earned on Treasury Bills is subject to withholding tax (WHT), based on CBN and FIRS guidelines.
- Before 2019: T-Bills were tax-exempt.
- After 2019: WHT of 10% may apply in some cases, especially for corporate investors.
Tips for Retail Investors
- Compare offers between banks and brokers before committing.
- Consider investing through Mutual Funds if you lack access to the primary market.
- Reinvest matured funds for compounding growth.
Treasury Bills vs. Other Instruments
| Feature | Treasury Bills | Fixed Deposit | Mutual Funds | Stocks |
|---|---|---|---|---|
| Risk Level | Very Low | Low | Varies | High |
| Liquidity | High | Moderate | High | High |
| Returns (as of 2025) | 9–13% p.a. | 7–10% p.a. | Varies | Varies (volatile) |
| Capital Guarantee | Yes | Yes | No | No |
Where to Track T-Bill Rates in Nigeria
- CBN Website – https://www.cbn.gov.ng
- Financial market blogs like Nairametrics, Proshare
- Your bank’s investment desk
Final Thoughts
Treasury Bills are ideal for risk-averse Nigerians looking for stable income and capital safety. Whether you’re an individual investor or business, T-Bills can be a solid part of your portfolio—especially amid market uncertainty.
Also Read: Treasury Bills vs. FGN Savings Bonds in Nigeria: Which Should You Invest In?
Thank you for visiting our platform to learn more about how to invest in Treasury Bills in Nigeria. We hope this step-by-step guide has helped simplify the process for you.
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