Nigerian treasury bills are the go-to low-risk investment for naira savers — but the details (tenor, cost, tax, reinvestment) decide your real return. Here is the detailed guide.
Tenors and Mechanics
The CBN auctions 91-, 182- and 364-day bills. You buy at a discount; face value returns at maturity. Longer tenors usually pay higher annualised rates.
How to Invest
- Open/use a bank account with a treasury desk or app.
- Fund the amount (commonly ₦100,000+).
- Place an auction bid at the current rate.
- Track allotment and maturity.
Costs and Taxes
Expect bank commission and possibly withholding on interest; confirm current terms.
Risks and Ladders
Inflation can bite real returns and early exit forfeits interest. Use a maturity ladder (e.g. bills maturing every 3 months) for liquidity and rate flexibility.
FAQ
Can I lose money on Nigerian T-bills?
Default risk is minimal; the real risks are inflation and rate changes.
Are T-bills better than savings accounts?
Usually — better returns at similar risk levels, with less instant liquidity.
Related: T-Bill Rates and Buy via GTBank.