Treasury Bills offer a low-risk, government-backed option with guaranteed returns. In this guide, we’ll break down the current interest rates, how they work, and how to calculate your expected earnings using a free and powerful tool made for Nigerian investors.
What Is the Current Interest Rate for Treasury Bills in Nigeria?
As of April 2025, the latest Treasury Bill interest rates in Nigeria are:
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91-day (3-month) bill: 17.00%
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182-day (6-month) bill: 18.00%
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364-day (1-year) bill: 22.52%
These rates are the “stop rates”—the final accepted interest rates from the Central Bank of Nigeria’s (CBN) most recent auction. Each rate represents the return you get on the face value of the bill if held until maturity.
How Treasury Bill Interest Rates Work
Treasury Bills don’t pay you interest directly.
Instead, you buy them at a discount, and the difference between the purchase price and the maturity value is your interest.
For example:
If you buy a ₦1,000,000 bill for ₦817,000 (at 22.52% for 364 days), you earn ₦183,000 profit when it matures.
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You don’t receive interest payments monthly or quarterly.
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You get the full face value (₦1M in this case) at maturity.
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The upfront discount reflects the effective interest rate.
Why Treasury Bill Rates Fluctuate
Treasury Bill rates aren’t static—they’re influenced by real-time economic factors. Here’s why they change:
1. Inflation Rates
When inflation rises, investors expect higher returns to preserve their purchasing power. The government often raises Treasury Bill rates to stay competitive.
2. Central Bank Policy (MPR)
If the CBN increases the Monetary Policy Rate, it typically results in higher T-bill rates as well.
3. Government Borrowing Needs
More borrowing often means the government needs to attract investors, so they raise rates.
4. Market Liquidity
More money in circulation means more investors are willing to buy T-bills, which can lower the yield due to high demand. Less liquidity can push rates higher.
Who Decides These Interest Rates?
The Central Bank of Nigeria (CBN) determines the T-bill interest rates during auctions held every two weeks. Commercial banks, institutional investors, and large individuals place bids, and the CBN accepts bids that fall within its targeted yield range.
The “stop rate” is the highest rate the CBN accepts, and it becomes the official interest rate for that tenor in that auction cycle.
How to Calculate Your Returns on Treasury Bills
You don’t need to be a financial expert or math wizard to figure out how much you’ll earn. The easiest way to calculate your Treasury Bill returns is by using TreasuryBillsCalculator.com.ng.
With this tool, you can:
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Calculate your discounted value (how much you’ll pay)
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Know your maturity value (how much you’ll get back)
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See your net profit before you invest
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Choose between 91, 182, and 364-day durations
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Compare how your investment grows over different tenors
Why guess your returns when you can get it calculated instantly?
Treasury Bills vs Fixed Deposits: Which Pays More?
Let’s compare typical investment returns:
| Instrument | Average Annual Rate | Risk Level | Liquidity |
|---|---|---|---|
| Treasury Bills | Up to 22.52% | Low (Govt-backed) | Medium (1-year lock-in, but tradable) |
| Bank Fixed Deposit | 9%–14% | Low | Medium (varies by bank) |
T-bills usually pay more, especially on the 364-day instrument. Plus, interest from Treasury Bills is not taxed, which gives you an even better net return.
Real-World Example: Earning from a 364-Day Treasury Bill
Say you want to invest ₦2,000,000 in the 364-day bill with a 22.52% rate. Here’s how it plays out:
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Discounted Purchase Price: ₦1,634,000
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Maturity Value: ₦2,000,000
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Interest Earned (Profit): ₦366,000
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Effective ROI: 22.52%
Using TreasuryBillsCalculator.com.ng, you’ll get this result instantly—no need for spreadsheets or formulas.
Is Now a Good Time to Invest in T-Bills?
Yes—absolutely. With the 1-year Treasury Bill rate at 22.52%, you’re getting a solid, risk-free return that beats most savings and investment accounts.
Here’s why it’s a smart move right now:
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Inflation is still high, but this return helps offset it.
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Fixed deposits rarely offer over 15% annually.
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Your capital is secured and backed by the Nigerian government.
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You can exit early by selling on the secondary market if needed.
How to Invest in Treasury Bills in Nigeria
Option 1: Primary Market
You can invest during a CBN auction by:
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Visiting your commercial bank
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Filling out an investment form
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Choosing your amount and tenor (91, 182, 364 days)
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Waiting for auction results to confirm your rate
Minimum investment is ₦50,000, but most banks prefer ₦100,000 and above.
Option 2: Secondary Market
You can also buy already-issued T-bills through your bank or brokerage. The process is faster, and you can invest smaller amounts. However, the rates might differ from the auction rates.
Tips to Maximize Your Treasury Bill Returns
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Use the calculator at TreasuryBillsCalculator.com.ng to test different amounts and durations before committing.
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Reinvest matured T-bills to compound your earnings over time.
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Choose longer tenors (like the 364-day) when rates are high—they offer better returns.
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Stay informed about auction dates to take advantage of peak rates.
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Balance your portfolio with a mix of short- and long-term T-bills depending on your liquidity needs.
Final Thoughts
Treasury Bills remain one of the safest and most rewarding investments available in Nigeria today. With interest rates reaching over 22% for the 364-day tenor, you can secure solid, government-backed returns while protecting your capital.
But don’t invest blindly. Use TreasuryBillsCalculator.com.ng to break down the math and ensure you’re making the smartest financial decisions. It’s fast, accurate, and designed just for Nigerian investors like you.
Start planning your next move with confidence—your money deserves to grow safely and steadily.