Treasury Bills in Nigeria: What They Are and How to Buy Them in 2026

With the naira recording an average depreciation of roughly 40% against the dollar across 2023 and 2024 before stabilising around ₦1,580 per dollar in mid-2026, millions of Nigerians are searching for instruments that can deliver genuine positive real returns. Treasury bills have re-emerged at the front of that conversation. After the Central Bank of Nigeria (CBN) tightened monetary policy aggressively — raising the Monetary Policy Rate to 27.50% in February 2025 before edging it down to 27.00% in May 2026 — Nigerian Treasury bill rates climbed to levels not seen since the oil-price crises of the mid-2010s. The 364-day T-bill settled at auction yields above 22% for much of the first half of 2026.

This guide explains precisely what treasury bills are, how the auction system works, what you need to participate, and how T-bills compare to other government paper such as FGN bonds and savings bonds.

What Exactly Are Treasury Bills in Nigeria?

Treasury bills are short-term debt instruments issued by the Federal Government of Nigeria through the CBN as its fiscal agent. They are zero-coupon instruments: you buy them at a discount to face value and receive the full face value at maturity. The difference between your purchase price and the face value is your return.

The CBN issues T-bills across three tenors: 91 days (three months), 182 days (six months), and 364 days (twelve months). Auctions are conducted bi-weekly by the CBN on behalf of the Debt Management Office (DMO), typically on Wednesdays, with settlement two business days later.

Because T-bills are backed by the full faith of the Federal Government, they carry zero credit risk in naira terms. They are also exempt from withholding tax under current FIRS regulations, a material advantage over corporate fixed deposits and money market funds where a 10% withholding tax applies to interest income. The exemption is codified in the Companies Income Tax Act (CITA) as amended and remains in force as of June 2026.

Nigeria's stock of outstanding T-bills reached approximately ₦9.8 trillion as at April 2026, according to CBN data, reflecting the government's sustained reliance on short-term domestic borrowing to manage cash-flow mismatches between oil receipts and federation expenditure.

How Do Treasury Bill Auctions Work in Nigeria?

The CBN conducts T-bill primary-market auctions on a two-week cycle. The process has two tiers: competitive bids and non-competitive bids.

Competitive bids are submitted by Primary Dealer Market Makers (PDMMs), a group of 22 commercial and merchant banks authorised by the CBN and DMO to participate directly. Competitive bidders specify the rate (yield) they are willing to accept. Bids are ranked from the lowest yield upwards; the CBN accepts bids until the offer amount is filled, and the highest yield accepted becomes the stop rate for the auction. Retail investors cannot submit competitive bids directly.

Non-competitive bids allow any investor holding a bank account in Nigeria to subscribe at the stop rate determined by competitive bidding. This is the route most individuals and corporates use. Non-competitive bids are submitted through a commercial bank or licensed stockbroker. The minimum subscription for non-competitive bids is ₦50,000 (face value), and subsequent multiples must also be ₦50,000.

The DMO publishes the auction calendar and result notices on its website (dmo.gov.ng). Results show the offer amount, total subscriptions, amount allotted, stop rate, and the marginal rate for each tenor. Over-subscription is common: in March 2026, the 364-day tenor attracted bids of ₦1.47 trillion against an offer of ₦600 billion, a subscription ratio of 2.4x, according to DMO auction results.

Settlement occurs through the Central Securities Clearing System (CSCS) and the CBN's scripless securities settlement system. Investors receive electronic confirmation; physical certificates are no longer issued.

How to Buy Treasury Bills as a Retail Investor

Retail investors have three practical routes to buy T-bills in Nigeria.

Route 1: Through your commercial bank. Most tier-1 and tier-2 banks — including Zenith, GTBank, Access, UBA, and First Bank — allow customers to subscribe to T-bills via internet banking or by visiting a branch. You instruct the bank to place a non-competitive bid on your behalf. The bank charges a custodian or transaction fee, typically between 0.5% and 1.00% of face value per annum, which effectively reduces your net yield. Confirm the fee schedule before subscribing.

Route 2: Through a licensed stockbroker or investment platform. Registered dealing members of the Nigerian Exchange (NGX) and licensed investment advisers registered with the Securities and Exchange Commission (SEC) can also place T-bill orders. Digital platforms including Stanbic IBTC Stockbrokers, CardinalStone, and Vetiva Capital offer online portals. Some fintech platforms aggregate access and re-package T-bill exposure in pooled structures; read the underlying documentation carefully to confirm whether you hold the instrument directly or through a fund.

Route 3: Secondary market purchase. If you miss a primary auction or want a shorter effective tenor, you can buy existing T-bills on the OTC fixed-income secondary market through your bank or broker. Secondary market pricing reflects the remaining days to maturity and prevailing market yields. Liquidity is adequate for most retail transaction sizes.

To participate you need: a valid Bank Verification Number (BVN), a funded naira account, and a CSCS investor account (your broker or bank handles this on your behalf). There is no requirement to be a Nigerian citizen; foreign portfolio investors may also participate, subject to CBN repatriation procedures.

What Are the Current Treasury Bill Rates in Nigeria?

As at the CBN auction conducted on 28 May 2026, stop rates were:

• 91-day T-bill: 18.50%
• 182-day T-bill: 19.80%
• 364-day T-bill: 22.30%

These figures are annualised discount rates on face value. To calculate your actual return: if you invest ₦1,000,000 in a 364-day bill at 22.30%, the discounted purchase price is approximately ₦777,000 (₦1,000,000 minus ₦223,000 discount), and you receive ₦1,000,000 at maturity. The effective yield on the amount invested is slightly higher than the quoted rate: approximately 28.7% on a yield-to-maturity basis.

Inflation, as measured by the NBS Consumer Price Index, stood at 15.91% year-on-year in June 2026 on the rebased index, with food inflation at 17.52%. At a 22.30% T-bill rate, the real return is now clearly positive in headline CPI terms, a first since the tightening cycle began. However, for investors benchmarked against naira savings account rates — most banks pay between 6% and 12% per annum — T-bills represent a substantial improvement. Against food inflation, which NBS measured at 17.52% in June 2026, the 364-day T-bill comes close to preserving real value.

Treasury Bills vs FGN Bonds: Which Is Right for You?

Treasury bills and FGN bonds serve different investor profiles.

FGN bonds are longer-dated instruments, issued with tenors of 2 years, 3 years, 5 years, 7 years, 10 years, and occasionally 20 and 30 years. Unlike T-bills, FGN bonds pay a coupon semi-annually. The coupon is fixed at issuance. The DMO's April 2026 auction priced the 10-year FGN bond at a coupon of 19.30%. Like T-bills, FGN bond coupon income is exempt from withholding tax.

FGN bonds carry interest-rate risk: if market yields rise after you buy, the market value of your holding falls. T-bills, being short-dated, carry far less interest-rate risk. Most retail investors using government paper as a naira savings vehicle are better served by T-bills unless they have a specific long-term horizon — for example, building a sinking fund for a school fees obligation three to five years away.

The minimum subscription for FGN bonds at primary auction is ₦50,000,000 for competitive bids, though the DMO's FGN Savings Bond programme was designed for retail investors with a minimum of ₦5,000 and a maximum of ₦50,000,000 per individual per offer. FGN Savings Bonds are offered monthly and quoted on the NGX.

For a detailed look at how to think about inflation-beating strategies across asset classes, see our guide to protecting naira savings from inflation.

Risks Every Investor Should Understand

Treasury bills carry no credit risk in naira. The federal government has never defaulted on domestic naira-denominated obligations. However, three risks are material.

Currency risk. If you are measuring returns in dollars or need to import goods priced in foreign currency, a naira return of 22% is eroded sharply by any further depreciation. T-bills do not hedge FX exposure.

Reinvestment risk. A 364-day T-bill locks in the current rate for one year. If yields fall before maturity — which they may if the CBN pivots to rate cuts — your reinvestment at maturity will be at a lower rate.

Inflation risk. As noted above, the current 364-day rate of 22.30% remains below headline CPI. The real return in purchasing-power terms is negative, though less negative than holding naira in a standard savings account.

Liquidity risk. Although a secondary market exists, it is primarily an institutional market. Selling a T-bill before maturity may incur a price concession, particularly for smaller retail-sized lots. Plan to hold to maturity unless you have broker guidance on secondary-market pricing.

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Regulatory note: Treasury bill investments in Nigeria are governed by the CBN Act 2007, the DMO Establishment Act 2003, and relevant CBN circulars. Interest income on FGN and CBN securities is exempt from withholding tax under the CITA as amended. The Securities and Exchange Commission (SEC) regulates investment advisers and collective investment schemes under the Investments and Securities Act 2007. The Cowrie Report is an independent editorial publication. We do not hold a financial services or investment advisory licence. Nothing in this article constitutes personalised financial advice. Readers should consult a licensed investment adviser or their bank before making investment decisions.