Thinking of pulling out of a Treasury Bill investment early?
You’re not the only one asking. Life happens—emergencies come up, plans change. But can you truly terminate a Treasury Bill before maturity in Nigeria? Let’s clear the air and show you your real options.
Can Treasury Bills Be Terminated Before Maturity?
No, you cannot terminate a Treasury Bill in Nigeria before maturity in the primary market.
Once you’ve invested through the Central Bank of Nigeria (CBN) auction, you’re locked in until the tenor ends—either 91, 182, or 364 days.
However, you can sell your Treasury Bill early in the secondary market, where existing investors resell their holdings. This offers a way out—but not always at full value.
How Early Exit from Treasury Bills Works in Nigeria
Treasury Bills are non-redeemable before maturity in the primary market. But in the secondary market, financial institutions and investors can sell their T-bills to others, often at a negotiated price based on:
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Time left until maturity
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Prevailing interest rates
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Market demand
So yes—you can exit early, but you might not receive the full face value or expected return. There’s a trade-off.
Real-World Example: Early Exit Scenario
Say you invested ₦1,000,000 in a 364-day Treasury Bill with a 22.52% rate and want to exit after 6 months.
Here’s what might happen:
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You approach your bank to sell your T-bill on the secondary market.
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If market interest rates have risen, your T-bill may be less attractive, and you might need to sell at a discount.
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You could receive, for example, ₦900,000 instead of ₦1,000,000 face value.
Moral of the story? Exiting early is possible, but it could cost you in returns.
How to Sell Treasury Bills Before Maturity
If you need to exit early, follow these steps:
1. Contact Your Bank or Broker
Let them know you’d like to liquidate your T-bill investment.
2. Request a Quotation
They’ll give you a resale price based on market conditions.
3. Accept and Sell
If you’re okay with the price offered, they’ll facilitate the sale to another buyer.
4. Get Paid
You’ll receive your cash—though it might be less than you initially expected if you sell at a discount.
When Is It Worth Selling a Treasury Bill Early?
Selling before maturity might make sense if:
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You’re facing an emergency financial need
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You’ve found a more profitable investment opportunity
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Market conditions are favorable and you can sell at or above face value
Still, this decision shouldn’t be taken lightly—use a calculator to evaluate your options before jumping in.
Try the tool at TreasuryBillsCalculator.com.ng to simulate your gains or potential losses.
What Happens If You Wait Until Maturity?
If you hold your Treasury Bill to maturity:
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You receive the full face value of your investment
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Your returns are guaranteed
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No additional action is required—your bank or broker will automatically credit your account
In short, you get your complete payout with zero hassle.
Important Considerations Before Investing in T-Bills
1. Liquidity
T-bills aren’t ideal if you’ll need the money urgently. Always choose a tenor that matches your financial timeline.
2. Interest Rate Trends
If interest rates go up after you buy a T-bill, your existing one may lose value in the secondary market.
3. Market Conditions
When selling early, market volatility can impact your resale price. Timing matters.
How to Plan Better with Treasury Bills
Before you invest:
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Decide how long you can leave your money untouched
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Pick a tenor accordingly—91, 182, or 364 days
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Use TreasuryBillsCalculator.com.ng to calculate expected profit and understand the break-even point
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Leave room for liquidity—don’t invest every naira if you might need access to cash
Planning wisely helps you avoid the need to sell early.
Frequently Asked Questions
Q: Can I cancel my T-bill application before the auction?
A: Yes, you can cancel before the bid closes. But once it’s processed and you’re allocated the bill, cancellation is no longer possible.
Q: Can I partially liquidate a T-bill investment?
A: In most cases, no. Treasury Bills are issued in full denominations. If you want flexibility, consider spreading your investments into smaller portions.
Q: Will I pay any penalty if I sell early?
A: Not exactly a “penalty,” but you may sell at a lower value due to market pricing. That’s your indirect cost.
Final Thoughts
You can’t officially terminate a Treasury Bill investment before maturity—but you can exit through the secondary market. Just know that you may lose part of your expected profit depending on market rates and timing.
The smartest move? Plan properly before you invest.
Use TreasuryBillsCalculator.com.ng to simulate different tenors and amounts so you can commit with confidence.
When it comes to your money, don’t guess—calculate.
Treasury Bills are powerful, safe tools for wealth building—but only when you use them right.