How to Buy Treasury Bills in Nigeria (2026)

Treasury bills are one of the safest ways to earn a return on your naira — you are lending to the Federal Government for a few months and being paid for it. But the way T-bill returns are quoted confuses almost everybody, because the interest comes off up front. This guide is about the numbers: what you really earn, how it compares with inflation, and how to run a T-bill holding well.

For the step-by-step account-opening and bidding process, see how to buy treasury bills in Nigeria.

Safe, but not a savings account. T-bills are backed by the Federal Government, so credit risk is very low. But your money is committed until maturity, and selling early on the secondary market can return less than you put in. Use money you will not need for the tenor.

The discount: why you pay less than you get back

A Treasury bill is a discount instrument. You do not deposit ₦100,000 and collect interest later. You pay less than the face value and receive the full face value at maturity — the difference is your return, and you effectively earn it the moment you buy.

A worked example at a 17% discount rate on a 364-day bill with a ₦1,000,000 face value: you pay roughly ₦830,000 and receive ₦1,000,000 a year later. Your gain is ₦170,000 on ₦830,000 actually invested — about 20.5%.

That gap matters. The quoted discount rate understates your true yield, because you earned the return on a smaller outlay. When comparing a T-bill against a savings account or a fund, compare the true yield, not the quoted discount rate — your provider should give you both.

What they have been paying, and the real return

Rates are set at each fortnightly auction and they move fast. The 364-day stop rate reached 18.47% on 7 January 2026 — the best risk-free naira return of that quarter — and had fallen to 16.99% by the 4 February auction, after the CBN cut its policy rate by 50 basis points to 26.50%.

Now put that against headline inflation of 15.43% in July 2026. A high-teens T-bill yield is a positive real return — modest, but genuinely positive, which has not reliably been true in Nigeria for years. That is the honest case for T-bills in 2026: not exciting, but your money is growing in purchasing power rather than shrinking.

Always check the current CBN auction result rather than any figure quoted in an article, including this one.

The rollover decision most people get wrong

When your bill matures you can take the cash or roll it into the next auction. Most people set rollover and stop thinking about it. In a falling-rate environment that is expensive: you can find yourself rolling an 18.5% holding into something several points lower without ever making a decision.

At each maturity, spend two minutes on three questions:

1. What is the current stop rate for the tenor I want?
2. Does a money market fund or a bank fixed deposit beat it after fees, for money I could access sooner?
3. Do I still not need this money for the full tenor?

Selling early: the secondary market

T-bills can be sold before maturity through your bank or broker on the secondary market — but at the price the market gives you that day, which depends on where rates have moved since you bought.

The direction is counter-intuitive and worth knowing: if yields have risen since you bought, your bill is worth less, because buyers can now get a better rate on a new one. If yields have fallen, your bill is worth more. Add the dealer's spread, and early exit usually costs you.

The practical answer is a ladder: split the money across 91-, 182- and 364-day bills so something matures every few months. You get access without ever being forced to sell at a bad price, and you keep re-pricing part of your holding at current rates.

Minimums, and the cheaper way in

• Primary auction, direct: the minimum bid is ₦50,001,000 — institutional territory.
• Through a bank or broker: commonly from ₦100,000, in multiples of ₦10,000, though some banks set minimums as high as ₦1,000,000.
• FGN Savings Bonds: the genuinely retail alternative, issued by the DMO from ₦5,000 — same issuer, far lower entry point, interest paid periodically rather than up front. See FGN savings bonds explained.

Tax

Interest on Federal Government securities has historically been treated favourably for individuals in Nigeria, but tax rules changed materially with the Nigeria Tax Act 2025 in force from 1 January 2026. Confirm the current treatment of T-bill income with the Nigeria Revenue Service (NRS) or your provider before assuming a return is tax-free — and see the new PAYE tax law for the wider reform.

Where T-bills fit

The low-risk anchor. Money for a goal within a year, or the portion of a buffer you genuinely will not touch. Not for money you may need next week, and not the place for long-term growth — for that see how to invest ₦100,000 and compare platforms on our savings and investment page.

Frequently asked questions

How is T-bill interest paid? Up front, as a discount — you pay less than face value and receive the full face value at maturity.

Is my true return the same as the quoted rate? No, it is higher. Because you invested less than the face value, the effective yield exceeds the quoted discount rate. Ask your provider for the true yield.

What have T-bills been paying in 2026? The 364-day stop rate was 18.47% in early January and 16.99% by early February. Check the latest CBN auction for the current figure.

Can I sell before maturity? Yes, on the secondary market — but at the day's price, which can be below what you paid if yields have risen. A ladder avoids the need.

What is the minimum investment? About ₦100,000 through a bank or broker; ₦50,001,000 at the primary auction; FGN Savings Bonds from ₦5,000.

Are T-bill returns taxed? Tax rules changed under the Nigeria Tax Act 2025 — confirm the current treatment with the NRS or your provider.

Educational information, not financial advice. Rates change at every auction — confirm the current position with the CBN, your bank or your broker.