What Are Treasury Bills (T-Bills)?
Treasury Bills, or T-Bills, are short-term government securities issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government. When you invest in a T-Bill, you are essentially lending money to the government for a specific period. In return, the government promises to repay you the full amount (face value) at the end of the term—along with your profit.
T-Bills are commonly used by the government to raise funds to cover short-term financial obligations such as salaries, infrastructure, or managing national cash flow.
How Do Treasury Bills Work?
T-Bills are discounted instruments, meaning, you don’t buy them at face value—you buy them at a lower price and get the full value at maturity.
Example:
You decide to invest in a ₦100,000 T-Bill with a 6-month maturity.
Instead of paying ₦100,000 upfront, you might pay ₦92,000.
After 6 months, the government pays you ₦100,000.
Your return is the difference—₦8,000—which is your interest.
Tenure Options
T-Bills come in three main maturity periods:
91 days (3 months)
182 days (6 months)
364 days (1 year)
This flexibility allows investors to manage short-term liquidity without locking their funds away for years.
Why Should You Consider Investing in Treasury Bills?
1. Safety & Security
T-Bills are backed by the Federal Government, which makes them one of the safest investments in Nigeria. There’s virtually no risk of default.
2. Predictable and Transparent Returns
You know upfront exactly how much you’re getting back. No surprises.
3. Low Risk, Low Effort
Perfect for new or conservative investors looking for steady income without market volatility.
4. Short-Term and Flexible
Since they don’t tie up your money for long periods, you can easily plan around your cash flow needs.
5. Capital Preservation
Ideal for people saving towards a goal (like rent, school fees, or business capital) who don’t want their money sitting idle.
How to Buy Treasury Bills in Nigeria
You can buy T-Bills through:
Commercial Banks – Visit your bank during a CBN auction period, speak to your account officer, and fill a form.
Investment Apps – Fintech platforms like Ladda make it easy. It lets you start investing with a smaller amount.
Stockbrokers – If you already invest in stocks, many brokers also offer T-Bill services.
Risks and Things to Consider
While T-Bills are low-risk, they aren’t entirely risk-free. Here are a few things to keep in mind:
1. Inflation Risk
If inflation is higher than the T-Bill interest rate, your real return (purchasing power) may be negative—even though you made a nominal profit.
2. Limited Liquidity
Once you invest, your money is locked in until maturity. If you need access to your funds early, you’d need to sell on the secondary market—which not all platforms offer.
3. Auction Timing
You can't buy T-Bills any day of the week. The CBN only issues them during scheduled auctions, usually every two weeks. You’ll need to plan ahead and monitor auction dates.
Who Are Treasury Bills Best For?
Salaried workers looking for a safe place to save without losing value to inflation.
Business owners with idle cash they don’t need for the next few months.
Young investors who want to start small and learn the ropes of investing.
People planning for short-term financial goals (like rent, trips, tuition, etc.).
Key Takeaways
T-Bills are one of the easiest and safest ways to start investing and growing your money in Nigeria. They won’t double your money overnight, but they offer peace of mind, predictable returns, and capital security.
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