If you’re looking for a secure way to grow your savings without the risk and volatility of the stock market, investing in treasury bills might be a smart move. Especially in Nigeria, treasury bills (T-bills), just like money market funds are a trusted low-risk option that provides predictable returns and peace of mind.
In this guide, we’ll walk you through everything you need to know about investing in treasury bills in Nigeria—from how they work to where you can buy them and what to expect in returns.
What Are Treasury Bills?
Treasury bills are short-term debt securities issued by the Central Bank of Nigeria (CBN) on behalf of the federal government. When you invest in a T-bill, you’re essentially lending money to the government, which promises to pay you back after a fixed period—usually 91, 182, or 364 days—with interest.
The best part? The interest is paid upfront. So if you invest ₦100,000 in a one-year treasury bill with a 20% return, you only pay ₦80,000 and get ₦100,000 back at the end of the term.
Why Invest in Treasury Bills?
Here’s why treasury bills are a go-to option for many Nigerian investors:
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Low Risk: Backed by the government, T-bills are considered one of the safest investments.
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Predictable Returns: Know your earnings upfront.
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Short-Term Options: Choose from 3-month, 6-month, or 1-year maturities.
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Tax-Free Interest: In Nigeria, T-bill earnings are currently not taxed.
How Do Treasury Bills Work in Nigeria?
The CBN sells treasury bills through auctions typically held every two weeks. Investors can participate via their banks or through licensed investment platforms. Bids are submitted indicating how much you want to invest and the yield you expect. The CBN then allots T-bills based on the highest accepted yields.
You can also buy existing T-bills on the secondary market through investment apps or brokers, although rates here may differ from the primary market.
How to Start Investing in Treasury Bills in Nigeria
Option 1: Through Your Bank
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Visit your bank and request to invest in T-bills.
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Fill out the necessary forms and fund your account.
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The bank places a bid on your behalf during the next auction.
Option 2: Through Investment Apps
Platforms like Cowrywise, Risevest, or Trove allow users to invest in treasury bills with as little as ₦1,000. The process is simple:
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Sign up
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Fund your wallet
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Select a T-bill product and invest
How Much Do You Need to Start?
Banks typically require a minimum of ₦50,000 to invest in T-bills directly. However, apps often lower the entry point for retail investors. Returns depend on market demand but range between 18% and 20% annually as of mid-2025.
You can check the latest treasury bill rates.
What to Look Out For
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Liquidity: Once you invest, your money is locked until maturity unless you sell on the secondary market.
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Inflation: If inflation exceeds your T-bill return, your real earnings are reduced.
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Rate Fluctuation: Yields can vary with market demand and CBN policy.
