The amount you need to buy a Nigerian treasury bill depends on your bank's minimum and the auction rate — but the maths is simpler than it looks. Here is the real cost breakdown.
What You Pay vs What You Get
T-bills are sold at a discount: you pay less than face value now and receive the full face value at maturity. Your profit is the difference, which is effectively your interest — paid up front.
Minimum Investment
A common retail minimum is ₦100,000, though some banks allow less. Institutional minimums differ for auctions.
Example Cost Calculation
If a 364-day bill is trading at a 20% rate, a ₦100,000 bill costs roughly ₦80,000 now and pays ₦100,000 at maturity, returning about ₦20,000 — before any tax or bank commission.
Fees and Other Costs
- Bank commission/administrative charges (check your bank).
- Possible taxes on interest income.
- Withdrawal/early-encashment penalties if you cash in early.
Risks and Benefits
Benefits: low risk, government-backed, often above savings-account rates. Risks: inflation can erode real return, and money is locked until maturity (or penalised on exit).
FAQ
Can I start with money under ₦100,000?
Some banks offer smaller minimums, especially through apps; check your bank.
Do I pay taxes on treasury bill earnings?
Interest may be subject to applicable taxes; confirm current rules for your situation.
Related: Treasury Bill Rates and Invest in T-Bills Through GTBank.
Disclaimer: Rates and minimums change; confirm current figures with your bank.