If you’re looking for a safe, tax-free, and high-yield investment, Treasury Bills (T-Bills) are one of the best options in Nigeria. Backed by the Central Bank of Nigeria (CBN), T-Bills offer a guaranteed return, making them ideal for individuals and businesses.
However, many people don’t know how to buy Treasury Bills or assume they need millions of Naira to invest. This guide will walk you through everything you need to know, including:
✅ How Treasury Bills work
✅ Where and how to buy them
✅ How much you need to invest
✅ How to calculate your earnings
✅ Common mistakes to avoid
💡 Want to calculate your earnings before investing? Use our free Treasury Bills Calculator to estimate your returns instantly!
What Are Treasury Bills and How Do They Work?
Treasury Bills (T-Bills) are short-term debt instruments issued by the CBN on behalf of the Federal Government to raise money for government projects. They are sold at a discounted price and paid back at full face value at maturity.
How Treasury Bills Work:
- You buy at a discount. Instead of receiving interest payments, you pay less than the face value and receive the full amount at maturity.
- The difference is your profit. For example, if you invest ₦1,000,000 in a 364-day T-Bill at a 30% rate, you might pay ₦770,000 upfront and get ₦1,000,000 at maturity, earning ₦230,000 profit.
Where Can You Buy Treasury Bills in Nigeria?
You can buy T-Bills through two main sources:
1️⃣ The Primary Market (CBN Auctions) – For Large Investors
The CBN conducts T-Bill auctions every two weeks, and commercial banks submit bids on behalf of customers. However, the minimum investment in the primary market is ₦50 million, making it accessible mainly to institutional investors and high-net-worth individuals.
2️⃣ The Secondary Market (Through Banks & Brokers) – For Everyone
If you don’t have ₦50 million, you can buy T-Bills in the secondary market through banks or stockbrokers. This allows you to invest smaller amounts, starting from ₦1,000.
💡 Not sure how much you can earn? Our Treasury Bills Calculator can help you estimate your returns before you invest.
Step-by-Step Guide: How to Buy Treasury Bills in Nigeria
Step 1: Choose Where to Buy (Primary or Secondary Market)
- If you have ₦50 million or more, buy directly from CBN auctions via your bank.
- If you have less than ₦50 million, buy from the secondary market through banks, brokers, or fintech platforms.
Step 2: Open an Investment Account
To invest in T-Bills, you need:
✔ A bank account with a commercial bank like GTBank, Zenith Bank, or First Bank
✔ A CSCS (Central Securities Clearing System) account (for secondary market trading)
💡 Some banks allow you to invest in T-Bills through their mobile banking apps.
Step 3: Decide on Your Investment Amount
- Primary Market Minimum: ₦50 million
- Secondary Market Minimum: ₦1,000 – ₦100,000 (varies by bank or broker)
Step 4: Select Your Tenor (Duration)
Treasury Bills are available in:
✔ 91-day (3 months)
✔ 182-day (6 months)
✔ 364-day (1 year)
💡 The longer the tenor, the higher the interest rate.
Step 5: Submit Your Application
- If buying in the primary market, complete a CBN Treasury Bill application form at your bank.
- If buying in the secondary market, apply through your bank’s investment platform or stockbroker.
Step 6: Fund Your Investment
Once your application is approved, transfer the required funds to complete your investment.
Step 7: Receive Your Treasury Bill Certificate
After buying, you’ll receive a certificate showing:
✔ Your investment amount
✔ The interest rate
✔ Your maturity date
💡 Want to calculate your potential profit before investing? Use our Treasury Bills Calculator to get accurate results.
Example: How to Calculate Treasury Bills Returns
To help you understand how much you can earn, here’s an example:
🔹 Investment Amount: ₦1,000,000
🔹 Tenor: 364 days
🔹 Discount Rate: 23.2954%
Step 1: Calculate the Discounted Purchase Price
- ₦1,000,000 ÷ (1 + (23.2954/100)) = ₦811,000.00
Step 2: Calculate Your Profit
- ₦1,000,000 – ₦811,000.00 = ₦189,000.00
💰 At maturity, you receive ₦1,000,000, making a profit of ₦189,000.00.
📌 Don’t want to calculate manually? Use our Treasury Bills Calculator for instant results!
Benefits of Buying Treasury Bills in Nigeria
✔ Risk-Free Investment – Guaranteed by the CBN.
✔ High Returns – Earn up to 30% per year, higher than savings accounts.
✔ Tax-Free Earnings – Unlike other investments, T-Bill profits are not taxed.
✔ Short-Term Gains – Options of 91, 182, and 364 days allow quick returns.
✔ Easy to Sell – Can be sold before maturity in the secondary market.
💡 Use our Treasury Bills Calculator to find out how much you can earn!
Common Mistakes to Avoid When Buying Treasury Bills
🚫 Not Checking Interest Rates – Rates change frequently, so always check the latest CBN auction results.
🚫 Investing Without a Plan – Choose a tenor that aligns with your financial goals.
🚫 Forgetting About Secondary Market Options – If you don’t have ₦50 million, you can still invest!
🚫 Ignoring Reinvestment – If you keep rolling over your investment, you can compound your returns.
💡 Want to make an informed investment? Our Treasury Bills Calculator will help you decide!
Final Thoughts – Should You Invest in Treasury Bills?
✅ Yes! Treasury Bills are one of the safest and most profitable investments in Nigeria. Whether you have ₦50 million or just ₦1,000, you can invest and earn risk-free returns.
📌 Before investing, check the latest rates and calculate your expected earnings using our Treasury Bills Calculator.