What are Treasury Bills in Nigeria?

Nigerian Treasury Bills (T-bills) are short-term government debt securities issued by the CBN on behalf of the Federal Government. They are sold at a discount to face value and redeemed at face value on maturity. T-bills are available in 91-day, 182-day, and 364-day tenors and are considered among the safest investments in Nigeria.

What is the current T-bill rate in Nigeria?

As of early 2026, Nigerian 364-day T-bill discount rates hover around 22–24% per annum, reflecting the tight monetary policy environment with the CBN MPR at 26.5%. The 91-day and 182-day rates are typically slightly lower. Rates change at each bi-weekly CBN auction — check CBN.gov.ng for the latest stop rates.

How do I buy Treasury Bills in Nigeria?

You can buy T-bills through: (1) Primary market: bidding at CBN's bi-weekly NTB auctions through a licensed dealer bank. Minimum is ₦50 million for competitive bids; (2) Secondary market: purchasing existing T-bills from banks or brokers — no minimum. Many banks and investment apps (Cowrywise, PiggyVest, Chaka) offer access to T-bills from as little as ₦5,000.

Is withholding tax charged on T-bill income?

Yes. T-bill income (the discount earned) is subject to 10% Withholding Tax (WHT) for corporate investors. For individual investors buying through licensed dealers or digital investment platforms, the WHT deduction is typically handled by the platform. Always confirm the after-WHT yield when comparing T-bills with other instruments.

Treasury Bills Calculator Nigeria

Calculate your T-bill return, discounted price, and effective annual yield — for 91, 182, and 364-day CBN auctions.

T-Bill Details

Face Value

₦

Discount Rate (per annum)

Tenor

Withholding Tax (WHT)

T-Bill Earnings (after WHT)

₦201,945

Discounted Purchase Price

₦775,616

Face Value (Maturity)

₦1,000,000

Gross Earnings

₦224,384

WHT Deducted (10%)

₦22,438

Net Earnings after WHT

₦201,945

Effective Annual Yield (gross)

29.0%

Effective Annual Yield (net)

26.1%

How to Use This Calculator

Calculate Return Tab

Enter the face value (the amount you want to receive at maturity), the discount rate (the current T-bill stop rate from CBN auction results), select the tenor (91, 182, or 364 days), and the withholding tax rate (10% for most investors). The calculator shows the discounted price you pay today, your gross earnings, WHT deducted, net earnings, and effective annual yield.

Compare Tenors Tab

Enter a face value and rate to compare all three tenors side by side. Note that the 364-day T-bill gives the highest absolute earnings and typically the best effective annual yield due to the discount structure.

The Formula

Purchase Price = Face Value × (1 − Rate × Days/365) Gross Earnings = Face Value − Purchase Price WHT = Gross Earnings × 10% Net Earnings = Gross Earnings − WHT Effective Annual Yield (gross) = (Earnings/Price) × (365/Days) × 100 Effective Annual Yield (net) = (Net Earnings/Price) × (365/Days) × 100

T-bills are discount instruments — you pay less than face value upfront and receive the full face value at maturity. The difference is your return. Unlike fixed deposits, there is no "interest" added; the return is built into the price gap.

The effective annual yield (EAY) is higher than the nominal discount rate because the return is earned on a smaller invested amount (the discounted price, not the face value).

Example

Scenario: Bayo invests in a 364-day T-bill with ₦1M face value at 22.5%

Face value₦1,000,000

Discount rate22.5% per annum

Tenor364 days

Purchase price₦775,890

Gross earnings₦224,110

WHT (10%)₦22,411

Net earnings₦201,699

Effective annual yield (net)≈ 26.0%

Note: Bayo only needs to invest ₦775,890 to earn ₦1,000,000 at maturity — the effective yield (26%) exceeds the discount rate (22.5%) because the return is calculated on the smaller investment amount.

How Nigerian T-Bills Work

CBN Auctions

The CBN holds Treasury Bill auctions approximately every two weeks. The auctions are conducted on a Dutch auction basis where:

Competitive bids: Investors specify the rate they want. The CBN fills bids from lowest rate (most competitive) upwards until the allotment is filled. The highest accepted rate is the "stop rate".
Non-competitive bids: Smaller investors (via dealer banks) accept whatever stop rate is set. This protects retail investors from being outbid.

Primary vs Secondary Market

Primary market: Direct purchase at CBN auction through a licensed primary dealer bank. Minimum ₦50 million for competitive bids. Settlement is T+2.

Secondary market: Buy and sell existing T-bills on the FMDQ OTC Exchange or through investment platforms. No minimum — many apps allow purchase from ₦5,000. Prices are quoted as yields and can fluctuate before maturity.

WHT Treatment

The 10% Withholding Tax on T-bill income is a final tax for individuals — it satisfies your income tax liability on that income. For companies, WHT is a credit against corporate income tax. If you buy through a regulated investment platform, WHT is automatically deducted and remitted to FIRS at maturity.

T-Bills vs Fixed Deposits

CharacteristicT-Bills / Fixed Deposits

IssuerFederal Government / Commercial Bank

RiskSovereign (very low) / Bank credit risk

2026 rate (typical)22–24% / 18–22%

LiquidityTradable in secondary market / Usually locked

WHT10% / Generally exempt for individuals

Minimum investment₦5K (apps) / ₦100K–₦500K (banks)

T-bills generally offer higher rates and better liquidity than fixed deposits, but the WHT offsets some of the advantage for individual investors. For large amounts, T-bills are typically the preferred low-risk instrument.

FAQ

Yes. T-bills are tradable on the FMDQ OTC Exchange. If you need liquidity before maturity, you can sell through your dealer bank at the prevailing secondary market price. However, if rates have risen since you bought, you may sell at a lower price (receiving less than face value). Check with your bank or platform about early redemption options.

Through digital investment platforms (Cowrywise, PiggyVest, Trove, Bamboo), you can invest in T-bills for as little as ₦5,000–₦10,000. Through commercial banks directly, the minimum is typically ₦100,000–₦500,000. For direct participation in CBN primary market competitive bids, the minimum is ₦50 million.

T-bills are issued by the Federal Government of Nigeria and backed by the full faith and credit of the FGN. They are not covered by the NDIC deposit insurance scheme (which covers bank deposits only), but the sovereign guarantee makes them one of the safest instruments in Nigeria. No FGN T-bill has ever defaulted.

Check the CBN website (cbn.gov.ng) under "Treasury Bills" for the latest auction results and stop rates. FMDQ Group (fmdqgroup.com) publishes daily secondary market yields. Most investment platforms also display the current available rates prominently. Note that rates can change significantly from auction to auction.