How to Invest in Treasury Bills in Nigeria (2026 Guide)

How to Buy Treasury Bills in Nigeria: Step-by-Step

Nigerian Treasury Bills (T-bills) are short-term debt instruments issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government, with tenors of 91, 182, or 364 days. There are two ways to get exposure to them: bidding directly at a CBN primary market auction, which typically requires a minimum bid in the tens of millions of naira, or buying through a bank, stockbroker, or investment app, which is how almost every individual investor actually does it, often for a few thousand to a few hundred thousand naira depending on the provider.

That gap between "₦50 million" and "₦10,000" is where most beginners get confused, and where a lot of online guides give an incomplete answer. This guide walks through what T-bills actually are, the real routes into them, how the discount pricing works with a worked example, what tax now applies, what happens at maturity, and what to check before you commit your money.

Quick answer

Treasury Bills are short-term IOUs from the Federal Government of Nigeria, issued by the CBN in 91-day, 182-day, and 364-day tenors. You don't pay interest separately, instead you buy at a discount below face value and receive the full face value back at maturity, with the difference being your return.

There are two markets. The primary market is the CBN's biweekly auction, open in practice only to licensed dealers (mainly banks) and to bids at or above a minimum that is commonly cited as ₦50,001,000, in multiples of ₦1,000. The secondary market is where those same bills trade afterward through banks, stockbrokers, and investment apps, which is how ordinary investors get in, with minimums that vary by provider, sometimes a few thousand naira, sometimes closer to six figures, because different providers use different structures to give you exposure below the primary-market threshold. Following tax changes implemented in late 2025, interest earned on T-bills is now generally subject to a 10% withholding tax deducted at source, a change many older guides don't reflect.

What Treasury Bills are

A Treasury Bill is a short-term loan you make to the Federal Government of Nigeria. The CBN issues them on behalf of the Debt Management Office (DMO), and because they're backed by the government, they're widely treated as one of the lowest-default-risk naira-denominated investments available. That's a statement about default risk specifically, not a claim that the investment carries no risk at all (more on the distinction below).

Unlike a fixed deposit, T-bills don't pay you a separate interest amount on top of your principal. Instead, they're discount instruments: you pay less than the ₦1,000-per-unit face value upfront, and you receive the full face value back when the bill matures. The gap between what you paid and what you receive is your return.

How Treasury Bills work in Nigeria

1. You commit money for a fixed tenor — 91, 182, or 364 days.
2. You pay a discounted price, determined by the prevailing rate at the time you buy.
3. T-bills are generally intended to be held to maturity, and aren't designed for money you might need next week. That said, you can usually sell before maturity in the secondary market at the prevailing market price, which may be more or less than what you paid.
4. At maturity, you receive the full face value. The difference between what you paid and what you receive is effectively your return, which is why some providers describe it as "interest paid upfront," even though technically nothing is paid mid-tenor, it's built into the discounted purchase price.

Tenors

Note: the secondary market can offer bills with shorter remaining tenors than these, since you may be buying a bill partway through its original life.

How much you actually need to invest

This is the single most misunderstood part of Treasury Bill investing in Nigeria, because there isn't one minimum, there are effectively three, depending on how you access the market.

1. Primary market auction: commonly cited as ₦50,001,000 Commercial banks and asset managers that participate in CBN auctions consistently describe the primary-market minimum bid as ₦50,001,000, in multiples of ₦1,000 thereafter, and recent CBN "Invitation to Tender" notices for Treasury Bill auctions use this same figure. Treat this as the reliable market-standard figure, though it's worth confirming against the DMO's own published auction guidelines if you plan to access this market, since requirements can be revised. Bids at auction are submitted by licensed Money Market Dealers, mostly commercial banks. Individual investors generally don't bid with the CBN directly, they access the primary market through an eligible dealer or intermediary who submits the bid on their behalf. This tier is realistically institutional and high-net-worth territory, not a starting point for an individual saver.

2. Secondary market minimum: varies by dealer/provider Secondary-market minimums are not standardised, they vary by dealer and provider. Some banks and brokers cite amounts around ₦50,000 for T-bills already in circulation, bought through an authorised dealer, but you should confirm the actual minimum with the specific institution rather than assuming one figure applies across the market.

3. What retail platforms actually let you invest: typically a few thousand to a few hundred thousand naira This is the range most individual investors will encounter in practice. Banks, stockbrokers, and fintech investment apps commonly advertise minimums somewhere in this range, though the exact figure varies significantly by provider and can change over time. The structure behind that low minimum is not the same at every provider. Some pool contributions from multiple customers to collectively reach the primary-market threshold; others buy and subdivide bills already trading in the secondary market; others may offer a product that tracks or is backed by T-bills without you holding a bill directly. All of these can give you genuine economic exposure to T-bill-like returns, but they are not necessarily identical in terms of legal ownership, how quickly you can exit, or what happens if the intermediary itself runs into difficulty.

Why this matters: if a platform advertises "invest from ₦10,000" and a bank branch tells you the minimum is "₦50,000,000," they aren't necessarily contradicting each other, they may be describing different access routes to the same underlying instrument. But don't assume every low-minimum product works the same way. Before investing, ask the provider directly: am I buying a bill (or a share of one) in my own name, or a product that references T-bill returns without giving me that direct claim? What happens to my funds if the provider stops operating? The answer affects your actual risk, not just your entry price.

Primary market vs secondary market

Auctions are conducted using a bidding system where investors submit both the amount they want and a rate. You can bid competitively (naming your own rate, with the risk of being outbid if you ask for too high a return) or non-competitively (accepting whatever the emerging stop rate turns out to be, which generally improves your chances of allotment compared to an aggressive competitive bid, though it isn't a guarantee). Individual investors generally don't submit these bids themselves, they go through an eligible dealer or intermediary, who typically handles the bidding on their behalf.

How to invest in Treasury Bills, step by step

1. Choose your route. Decide between your regular commercial bank, a licensed stockbroker, or an investment app. Each has different minimums, fees, and processes, so it's worth comparing at least two.
2. Open an investment account and complete KYC. You'll typically need a valid form of ID, your BVN, and possibly proof of address. This is separate from your regular savings/current account, even if it's with the same bank.
3. Decide your amount and tenor. Choose 91, 182, or 364 days based on when you'll actually need the money back, since exiting early means selling on the secondary market at whatever price is available that day.
4. Submit your investment instruction. This usually means a form (physical or in-app) specifying the amount and, where relevant, your preferred rate. If you're investing through a bank or broker's pooled arrangement, they'll typically apply the prevailing or non-competitive rate on your behalf.
5. Fund the discounted purchase price. You transfer the discounted amount, not the face value, into your investment account.
6. Get confirmation. You should receive a certificate or digital confirmation stating the amount, tenor, rate, and maturity date. Keep this.
7. Wait for maturity, or manage an early exit through the secondary market if your circumstances change.

Worked example (for illustration only)

This example uses a hypothetical rate for illustration only. It does not reflect a current CBN auction result. Always check the live stop rate or your provider's current quoted rate before investing, since rates change at every biweekly auction.

Say you want to invest ₦1,000,000 in a 364-day Treasury Bill, and the quoted discount rate for illustration is 15% per annum. This is a simplified, illustrative calculation to show how the mechanics work, not the exact pricing formula used for every 364-day T-bill. Actual pricing depends on the specific auction or secondary-market rate and precise day-count conventions.

• Face value (maturity value): ₦1,000,000, this is what you receive back at maturity.
• Discount (simplified): 15% of ₦1,000,000 = ₦150,000, for a full 364-day (roughly one-year) tenor.
• Purchase price (simplified): ₦1,000,000 − ₦150,000 = ₦850,000, this is roughly what you'd pay upfront.
• Return (simplified): roughly ₦150,000 over the tenor, before the withholding tax discussed below.

For a shorter tenor like 91 days, the discount applied would be roughly a quarter of the annualised rate, since the discount is prorated for the shorter holding period, not the full annual figure. This is still a simplification, real T-bill pricing uses precise day-count conventions and the specific rate set at that auction or by that provider, so always ask your provider for the exact naira amounts before committing.

Terms not to confuse:

• Discount rate — the rate used to calculate how much less than face value you pay.
• Purchase price — the actual amount you hand over.
• Maturity value (face value) — the fixed amount you receive back.
• Yield — your effective annualised return, which can differ slightly from the quoted discount rate depending on how it's calculated.

How returns and taxation work

Your return is the gap between what you paid and the face value you receive. There's no separate coupon or monthly interest payment on a standard T-bill.

Tax update: for over a decade, interest on Treasury Bills was tax-exempt in Nigeria under an order that has since lapsed. Following tax changes implemented in late 2025, under the Deduction of Tax at Source (Withholding) Regulations, 2024, the Federal Inland Revenue Service (FIRS) directed banks, stockbrokers, and other financial institutions to begin deducting a 10% withholding tax at source on interest earned from short-term securities, including Treasury Bills. This is deducted automatically by the paying institution before your return reaches you, and withheld amounts are generally available as a tax credit unless the deduction is treated as final. FGN Bonds have been reported as remaining exempt from this specific levy. Because the exact commencement and administration details of this kind of directive can be clarified or adjusted after issuance, confirm the current treatment with your bank, broker, or a tax adviser at the time you invest. If you've read guides or bank pages stating T-bill interest is "not subject to tax," that information predates this change and should no longer be relied on.

What happens at maturity

When your T-bill matures, the face value is credited to the account linked to your investment. Depending on your provider, you may be asked in advance (or given the option at maturity) to either:

• Receive the full face value as cash, or
• Roll over into a new T-bill of the same or a different tenor, at whatever rate is available at that time.

Confirm with your provider in advance which of these is the default, so you're not automatically rolled over if you actually wanted the cash, or vice versa.

Can you sell before maturity?

Yes. T-bills are relatively liquid compared to assets like real estate or unlisted shares, and you can typically sell your holding through your bank, broker, or platform's secondary-market desk before the maturity date.

The important caveat: the price you get depends on prevailing market rates on the day you sell, not the rate you originally bought at. If rates have risen since your purchase, a buyer will typically only take your bill at a bigger discount, meaning you could receive less than you'd get by holding to maturity. If rates have fallen, you could come out ahead. Most investors who don't need liquidity mid-tenor simply hold to maturity to lock in the return they originally calculated.

Risks

Treasury Bills are widely regarded as one of the lower-risk naira investments available in terms of default, but that description mainly refers to default risk specifically, and it's worth being precise about what it does and doesn't cover.

• Inflation risk. Your return is fixed at the point of purchase, but the cost of living isn't. If inflation runs above your effective yield for the tenor, your money loses real purchasing power even though your naira balance grew.
• Opportunity cost. Money locked in a T-bill can't be redirected to a different opportunity (another investment, an emergency, a better rate elsewhere) until maturity or until you sell it, potentially at a loss, on the secondary market.
• Early-exit price risk. As covered above, selling before maturity means accepting whatever the market offers that day.
• Reinvestment risk. If you roll over at maturity, the new rate might be lower than the one you're used to, since auction rates move with monetary policy and market demand.

Avoid treating "government-backed" as equivalent to "no downside." It reduces default risk relative to many other naira-denominated instruments; it doesn't eliminate inflation risk, timing risk, or the structural risk of how a particular provider holds your investment.

What to check before choosing a provider

There's no single "best bank for Treasury Bills" that holds true for everyone, since the right choice depends on your amount, timeline, and priorities. Before committing, check:

• Accessibility. Can you invest and track your position online, or does it require a branch visit each time?
• Minimum amount. Does it match how much you actually want to commit?
• Fees and spread. Some providers build a margin into the rate they offer you versus the actual auction/secondary-market rate. Ask what you're actually getting relative to the current published rate.
• Secondary-market access. Can you exit before maturity through the same provider, and how is that priced?
• Transparency on structure. Are you buying a bill in your own name, or a slice of a pooled position? Ask directly.
• Maturity handling. Is rollover automatic, or do you get a clear choice?
• Regulatory status. Is the institution licensed by the CBN or the SEC (for stockbrokers/fund managers)? You can verify licensing status through the respective regulator.

Treasury Bills vs Treasury Bonds

It's easy to confuse the two since both are FGN debt instruments. The core difference: Treasury Bills are short-term (up to 364 days) discount instruments with no periodic interest payment, while Treasury Bonds (FGN Bonds) typically run for multiple years and pay periodic coupon interest rather than being sold purely at a discount. FGN Bonds also currently remain exempt from the withholding tax that now applies to T-bill interest. If you're weighing the two directly, that's a decision better made with a dedicated comparison rather than a short paragraph here.

Conclusion

Treasury Bills remain one of the more accessible, lower-default-risk ways for Nigerians to put idle naira to work over a fixed, short period. The part that trips most beginners up isn't the mechanics, it's the minimum investment confusion between the CBN's roughly ₦50 million primary-market threshold and the much smaller amounts retail platforms actually accept, and the fact that "low minimum" providers don't all use the same structure. Once you understand that distinction, plus the discount-pricing mechanic, the current withholding tax treatment, and what your exit options look like before maturity, the actual process of investing is straightforward: open an account, complete KYC, choose a tenor, fund the discounted purchase price, and wait for maturity or manage an early exit if your plans change.