A Beginner’s Guide to Investing in Nigerian Treasury Bills in 2025 — Safe & Profitable

Introduction

If you’ve been searching for a safe and low-risk way to grow your money in Nigeria, Treasury Bills (T-Bills) are one of the best options you can find. Backed by the Federal Government and managed by the Central Bank of Nigeria (CBN), they offer a guaranteed return with minimal risk. In this guide, we’ll break down everything you need to know  from how they work, how to buy them, the benefits, and practical tips  all explained in a simple, Nigerian-friendly way.

 

What Are Treasury Bills?

Treasury Bills are short-term debt instruments issued by the Federal Government of Nigeria to borrow money from the public.

• They’re like a loan you give to the government.

• In return, the government pays you back your capital plus interest after a fixed period.

• Because the government backs them, they’re considered one of the safest investment options in the country.

Tenors (Durations) Available:

• 91 days (3 months)

• 182 days (6 months)

• 364 days (1 year)

Why Nigerians Love Treasury Bills

1. Low Risk: Since the Federal Government backs it, there’s almost no risk of default.

2. Guaranteed Returns: You know exactly how much you’ll earn before you invest.

3. Cash Flow Planning: You can choose a tenor that matches your financial goals.

4. Tax-Free Earnings: Interest from T-Bills is exempt from withholding tax.

5. Easy to Buy: You can purchase directly from banks or on the secondary market.

How Treasury Bills Work In Nigeria

Let’s say you invest ₦1,000,000 in a 364-day Treasury Bill at a 10% interest rate:

• Instead of paying you interest at the end, the government deducts the interest upfront.

• So, you might pay ₦900,000 today and receive ₦1,000,000 at maturity.

• This means your profit (₦100,000) is already locked in from day one.

How To Buy Nigerian Treasury Bills

1. Primary Market (Through Auctions)

This is where the CBN sells T-Bills directly to the public via commercial banks.

• Step 1: Visit your bank and request the T-Bills application form.

• Step 2: Fill out the form with your investment amount and preferred tenor.

• Step 3: The bank submits your bid to the CBN auction.

• Step 4: If your bid is successful, your investment is processed.

💡 Pro Tip: You can check auction dates on the CBN website or ask your bank’s treasury department.

2. Secondary Market

If you miss the CBN auction, you can buy T-Bills from other investors through your bank or a licensed broker.

• Usually comes at a slightly lower return.

• Good for investors who want flexibility and don’t want to wait for auction dates.

Current Interest Rates For 2025

Interest rates on T-Bills in Nigeria change based on CBN policies, inflation, and market conditions. As of early 2025:

• 91-day: 6–7%

• 182-day: 8–9%

• 364-day: 10–12%

📌 Always confirm with your bank before making a purchase.

Tips For First-Time Nigerian Investors

1. Start Small: Test the waters with a small amount before committing big money.

2. Align with Your Goals: If you need quick access to your money, go for shorter tenors.

3. Diversify: Combine T-Bills with other investments like mutual funds or stocks.

4. Watch Inflation: If inflation is higher than your T-Bill return, your real profit may be low.

5. Use a Reinvestment Strategy: When your T-Bill matures, reinvest to keep your money growing.

Common Mistakes To Avoid

• Investing Without Understanding Rates: Always calculate your expected return before committing.

• Forgetting Auction Dates: This can make you miss better rates.

• Locking Away Emergency Funds: T-Bills are not liquid until maturity unless sold on the secondary market.

Why Treasury Bills Are Perfect For Nigerians In 2025

In a year where the naira is volatile and many investment options carry high risks, T-Bills remain a trusted means of preserving capital and earning stable returns. They might not make you an overnight millionaire, but they’re a great foundation for a safe investment portfolio.