Nigerian Treasury bills: rates, returns and maturity

What you buy

A Nigerian Treasury bill is a short-term loan to the Federal Government, issued through the Central Bank of Nigeria (CBN). Common terms are 91, 182 and 364 days. The maturity date is the date the government is due to repay the bill’s face value.

Bills are sold at a discount: you pay less than the face value and receive the face value at maturity. The difference is your gross cash return. Any fees and applicable taxes reduce what you keep. A bill does not normally pay monthly interest.

The quoted rate and your cash return

A discount rate measures the discount against the bill’s face value on an annual basis. The auction stop rate is the rate at which the auction closes. A provider may also quote a yield based on the lower purchase price you actually pay. Ask which measure is being shown and how it is calculated.

For example, suppose a bill costs ₦950,000 and pays ₦1 million at maturity. The gross cash return is ₦50,000, or about 5.26% of the amount paid, before charges and tax. This is the return over the bill’s remaining term, not necessarily a full year.

The CBN’s government-securities summary recorded a 15.5% marginal rate for the 91-day Treasury bill auction on 23 September 2026. That is a dated annual rate, not a 15.5% cash gain in 91 days or a rate you can assume is available now.

• Confirm the purchase price and face value in naira.
• Check the maturity date and days remaining.
• Ask for the net amount you will receive after charges and applicable tax.
• Compare returns over the same period and on the same calculation basis.

Why rates change

Auction rates reflect demand for bills, the amount offered and the money available to investors, alongside interest-rate and inflation expectations. A quoted rate can change at the next auction. Buying an existing bill before it matures can also involve a different price and yield.

A positive cash return does not always preserve buying power. If the goods or services you plan to pay for rise in price faster than your investment grows after costs, your money will buy less. For an expense in a foreign currency, exchange-rate changes matter too.

Plan around the maturity date

Choose a term that fits when you expect to need the money. If school fees are due before a bill matures, do not assume you can sell it immediately at the price you want. An early sale depends on your provider’s arrangements, a buyer and the market price.

When market yields rise, the price of an existing bill can fall. Selling early may therefore produce a smaller return than holding to maturity, and costs can reduce it further. Government backing does not guarantee the price at which you can sell before maturity.

You can divide money across bills with different maturity dates. This is often called a ladder. It gives you several dates at which money comes back, but the rates available when you reinvest may be lower.

Compare the full terms

Check the provider, ownership and custody records, minimum purchase amount and all charges. Ask what happens at maturity: whether the proceeds become available to you or are reinvested automatically. Do not assume that tax treatment or early-sale fees are the same through every provider.

Treasury bills can help plan spending around a known repayment date, subject to the government meeting its obligation. They should still be kept distinct from money you need to access immediately. When comparing them with property, consider differences in term, access to cash and risk as well as the quoted percentage.