How to Buy Treasury Bills in Nigeria (2026 Guide)

Nigerian Treasury bills (NTBs) are short-term loans to the Federal Government, issued by the Central Bank of Nigeria (CBN). Because they are backed by the government, they are one of the safest naira investments, and they are popular with savers who want a better return than a savings account without taking stock market risk. This guide explains how Treasury bills in Nigeria work, how to buy them through your bank, how the yield is calculated, and why rates may change.

How Nigerian Treasury bills work

Treasury bills are issued with tenors of 91, 182 and 364 days. The CBN holds auctions every two weeks, usually on a Wednesday, and announces the amounts on offer in advance. Bills are sold at a discount, which means the interest is effectively paid upfront: you pay less than the face value today and receive the full face value at maturity.

For example, on a ₦100,000 bill at a 10% discount rate you pay ₦90,000 and receive ₦100,000 at maturity. Your true yield is higher than the quoted discount rate, because you earn ₦10,000 on the ₦90,000 you actually invested, which is 11.11%. When comparing Treasury bills with other investments, always compare the true yield, not the discount rate.

How to buy Treasury bills in Nigeria

1. Use your bank. Banks act as dealers in the primary auction, and many let you place an order in their mobile app or internet banking. Each bank sets its own minimum investment, so compare a few if you have a small amount.

2. Choose a tenor and bid type. Pick 91, 182 or 364 days based on when you will need the money. Say whether you will accept the auction's rate, which is a non-competitive bid, or propose your own rate through the bank, which is a competitive bid and may be rejected if your rate is too high.

3. Fund your account. Make sure the money is in your account before the auction date. If your order succeeds, the discounted price is debited, and the bank confirms the allocation.

4. Collect at maturity. At maturity the full face value is paid into your account. You can take the money or instruct the bank to roll it over into a new bill.

Bills can also be bought on the secondary market from banks and brokers between auctions, at the market rate. This is useful if you want a specific maturity date or missed an auction.

Tax on Treasury bills

Interest on Nigerian Treasury bills has traditionally been exempt from income tax, which has made them attractive compared with fixed deposits. Confirm the current position with your bank, as the Nigeria Tax Act 2025 reorganised personal income tax from January 2026; see our guide to the Nigeria Tax Act 2025.

Why Treasury bill rates may change

The CBN cut its Monetary Policy Rate from 26.5% to 23% in September 2026 as inflation fell to 14.63%. When policy rates fall, Treasury bill rates usually follow, so locking in a longer tenor can protect your return for longer. Conversely, if rates rise, shorter bills let you reinvest sooner at higher rates. Watching the CBN's Monetary Policy Committee decisions helps you choose.

Treasury bills, money market funds or fixed deposits?

If you would rather not deal with auctions, a money market fund invests in Treasury bills and similar assets for you, lets you start with smaller amounts and usually allows withdrawals within a few days. Fixed deposits at banks lock your money for a set period at an agreed rate, but the rate may be lower and interest may be taxed. Treasury bills sit in between: safe, predictable and fixed for a set term. To guard your savings against rising prices, read our guide on protecting savings from inflation in Nigeria, and model returns with our fixed deposit calculator.

Frequently asked questions

How often does the CBN auction Treasury bills?

Every two weeks, usually on a Wednesday.

What is the true yield on a Treasury bill?

It is the discount divided by the price you pay, which is higher than the quoted discount rate.

Can I buy Treasury bills on my phone?

Many Nigerian banks let you place Treasury bill orders in their mobile apps.