Heard about Treasury Bills but not sure how they work?
You’re not alone. Treasury Bills in Nigeria are one of the most popular low-risk investments, but many people still don’t fully understand how they function. This guide breaks it all down in simple terms—plus how to calculate your exact returns using a free tool made just for Nigerians.
What Are Treasury Bills?
Treasury Bills (T-bills) are short-term government securities issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government.
They’re used to borrow money from the public for a fixed period—usually 91, 182, or 364 days—at a pre-determined interest rate.
In exchange for lending the government your money, you get paid a fixed return when the bill matures.
How Do Treasury Bills Work in Nigeria?
Here’s the short version:
You buy a Treasury Bill at a discount today, and when it matures, the government pays you the full amount (also called the “face value”). The difference between what you paid and what you receive is your profit—that’s your interest.
Real-Life Example:
Let’s say you want to invest ₦1,000,000 in a 364-day T-bill at a 22.5% interest rate.
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You’ll pay ₦775,000 today (this is your investment at discount)
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After 364 days, you’ll receive ₦1,000,000
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Your profit is ₦225,000
You don’t get paid monthly or quarterly—the return is paid once at the end, when the bill matures.
Key Features of Treasury Bills in Nigeria
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Issued by: Central Bank of Nigeria (CBN)
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Tenors available: 91 days, 182 days, 364 days
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Minimum investment: ₦50,000 (some banks require more)
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No monthly interest: You get your full return at maturity
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Tax-free: Interest earned is not taxed
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Low risk: Backed by the Federal Government
How Are Treasury Bills Sold?
Treasury Bills are sold through auctions conducted by the CBN, usually every two weeks. You can buy them through:
1. Primary Market
You participate in the official auction by submitting your bid through your bank. You’ll need to:
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Fill out a form at your bank
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Indicate the amount and tenor you want
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Choose whether you want to accept any rate (“non-competitive”) or specify your desired rate (“competitive”)
2. Secondary Market
If you miss the auction, you can still buy T-bills from someone else who already bought them. This is done through your bank or broker, often with smaller amounts and more flexibility.
What Is the Current Treasury Bill Rate?
As of April 2025, these are the stop rates from the latest CBN auction:
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91-day: 17.00%
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182-day: 18.00%
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364-day: 22.52%
These rates can vary slightly based on market demand, inflation, and monetary policy changes by the Central Bank.
Why Treasury Bills Are a Smart Investment
1. Safety First
T-bills are one of the safest investment options in Nigeria. They’re backed by the Federal Government, so the risk of losing your money is practically zero.
2. Guaranteed Returns
Once you buy a T-bill, your return is fixed. No surprises, no losses due to market swings.
3. Tax-Free Earnings
The interest earned from T-bills is exempt from taxes, which increases your actual profit.
4. High Liquidity
Even though T-bills are time-bound, you can sell them on the secondary market if you need cash before maturity.
How to Calculate Your Treasury Bill Returns
Instead of struggling with formulas or making rough guesses, you can use a free and reliable tool—TreasuryBillsCalculator.com.ng.
This tool is designed specifically for Nigerians. You simply enter:
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Your investment amount
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Tenor (91, 182, or 364 days)
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Current interest rate
And it instantly shows you:
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How much you’ll pay upfront (discounted value)
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How much you’ll receive at maturity
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Your total profit (interest earned)
Whether you’re investing ₦50,000 or ₦5,000,000, this tool saves you time and gives you clarity.
Step-by-Step: How to Invest in Treasury Bills
Step 1: Choose a bank or broker
Most commercial banks in Nigeria offer Treasury Bill investment services. You can also go through a licensed stockbroker or asset manager.
Step 2: Fund your account
Make sure you have the amount you want to invest available in your bank account.
Step 3: Fill out an investment form
Specify the amount, tenor, and whether you want to go with the market rate or set your own.
Step 4: Wait for allocation
After the auction, you’ll be notified if your bid was successful. If yes, your funds will be debited and you’ll receive a confirmation.
Step 5: Receive your return at maturity
When the bill matures, the bank or CBN will credit your account with the face value of the bill.
Who Should Invest in Treasury Bills?
T-bills are perfect for:
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First-time investors who want a low-risk way to start
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Corporate treasurers managing idle cash
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Pensioners or retirees looking for stable returns
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Anyone looking to beat inflation with minimal risk
Common Mistakes to Avoid
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Ignoring the discount system: Many new investors think they’ll earn interest on top of their investment instead of from the discounted price.
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Failing to check auction dates: T-bill auctions happen every two weeks—don’t miss your chance.
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Not using a calculator: Estimating profits manually often leads to errors. Use TreasuryBillsCalculator.com.ng for fast, accurate results.
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Investing without understanding tenors: Always choose the tenor that matches your cash flow needs. Don’t lock your money in longer than you can afford.
Final Thoughts
Treasury Bills are one of the best low-risk investment options in Nigeria. Whether you’re a cautious saver or just starting your investment journey, T-bills offer predictable returns, government backing, and full tax exemptions.
But don’t invest blindly. Use TreasuryBillsCalculator.com.ng to calculate your returns before you commit. It’s simple, free, and built for Nigerian investors who want to make informed financial decisions.
Take control of your money—start investing in Treasury Bills the smart way today.