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Part of the guideHow to save in Nigeria when inflation is high
The short answer
Most individuals buy Nigerian Treasury bills through a bank, stockbroker or investment platform, either by bidding at the CBN's fortnightly auction through that agent or by buying existing bills on the secondary market, which usually has lower minimums. You pay less than face value and receive the full face value at maturity. At the 7 October 2026 auction a 364-day bill cleared at a 15.85% discount rate, roughly 18.8% as an annual yield before the 10% withholding tax.
A Treasury bill is a short loan to the Federal Government. The Central Bank of Nigeria (CBN) sells them on behalf of the Debt Management Office in three tenors: 91, 182 and 364 days. They suit money you will not need until a known date, which is why they sit in the middle of our guide to saving in Nigeria when inflation is high.
This article covers the practical part: where to buy, how much you need, how the price is worked out, and what lands in your account after tax.
Primary auction or secondary market
There are two ways in. At the primary market, new bills are sold at CBN auctions held every two weeks, usually on a Wednesday. You cannot bid yourself; a bank, discount house or stockbroker bids for you. The rate is set by the auction, and the stop rate is the highest accepted bid. Minimums for primary bids are high. Stanbic IBTC, for example, lists ₦50,001,000 as its primary-market minimum, which is why this route mostly serves institutions and wealthy individuals.
At the secondary market, you buy bills that are already in issue from a dealer such as a bank or stockbroker. Minimums are much lower; NairaCompare puts them at around ₦10,000 to ₦100,000 at many providers, though each sets its own. Rates are close to, but not identical to, the latest auction, and the remaining tenor may be odd, such as 147 days.
| Primary auction | Secondary market | |
|---|---|---|
| Who sells | CBN, on behalf of the DMO | Banks, discount houses, stockbrokers |
| When | Fortnightly auctions | Business days |
| Typical minimum | High; ₦50m+ at some banks | Often ₦10,000 to ₦100,000 |
| Rate | Auction stop rate | Market rate, set by the dealer |
| Tenor | 91, 182 or 364 days | Whatever remains on the bill |
A third route is indirect: a money-market fund or an app that pools savers' money into bills. You give up control over the exact bill in exchange for small minimums and easy access. Our explainer on how money-market funds work covers that option.
Step by step
- Pick the date you need the money and choose the tenor that matures before it. A bill bought for school fees in January should not mature in March.
- Open or use an account with a bank or licensed stockbroker that offers Treasury bills, and complete its custody or investment form if asked.
- Ask for the current rate, the minimum, any fees and whether the quote is a discount rate or a yield.
- Fund the account and send your instruction: amount or face value, and tenor. For a primary bid, the dealer submits it before the auction closes.
- Check the contract note. It should show face value, price paid, discount rate, maturity date and how withholding tax will be handled.
- At maturity, the face value less any tax is paid into your account. Decide in advance whether to roll it into a new bill or move it to the goal it was meant for.
How the discount works, with real numbers
Treasury bills pay no interest during their life. You buy below face value and receive the full face value at maturity; the difference is your return. Auction results are quoted as discount rates, which understate the yield on the money you actually invest.
At the 7 October 2026 auction the stop rates were 15.50% (91-day), 15.80% (182-day) and 15.85% (364-day). Take ₦1,000,000 of face value at 15.85% for 364 days. Using the common 365-day convention:
- Price you pay
- ₦1,000,000 × (1 − 0.1585 × 364 ÷ 365) = about ₦841,934
- Discount (your return)
- about ₦158,066
- Effective annual yield before tax
- ₦158,066 ÷ ₦841,934 = about 18.8%
- Withholding tax at 10% of the discount
- about ₦15,807
- Net return
- about ₦142,259, or roughly 16.9% a year on the money invested
Dealers may use a slightly different day-count, so the price you are quoted can differ by a few hundred naira. The same calculation for a 91-day bill at 15.50% gives an effective yield of about 16.1% a year before tax; for a 182-day bill at 15.80%, about 17.2%.
Tax, fees and early exit
In October 2025 the tax authority (now the Nigeria Revenue Service) issued a public notice that withholding tax applies to interest on short-term securities, including Treasury bills, for every type of investor. The rate on interest is 10%, and the payer deducts it when the bill matures. Interest on Federal Government bonds stays exempt, and BusinessDay reports that CBN OMO bills are also exempt. Our article on withholding tax on interest explains when the deduction is final.
Dealers may charge custody or transaction fees. Ask for them in writing and subtract them from the yield before you compare.
You can usually sell a bill before maturity on the secondary market, but the price depends on rates at the time. If rates have risen since you bought, you will get less than you might expect; if they have fallen, you may get more. Treat a bill as money you will hold to the end.
What is happening to rates now
The Monetary Policy Committee cut the policy rate from 26.5% to 23% on 22 September 2026. At the next auction, on 23 September, stop rates fell by 70 to 80 basis points across all tenors; the 364-day rate went from 16.62% to 15.89%, then edged to 15.85% on 7 October. The CBN offered ₦450 billion at a second October auction on 14 October, mostly in 364-day bills.
Falling rates have two practical effects. A bill bought today locks in today's rate until maturity, which helps if rates keep falling. And each time a bill matures, the replacement will probably pay less. Headline inflation was 14.63% in September 2026, so a 364-day bill held to maturity still gives a small positive return after tax, while shorter bills are roughly level with prices. Check the arithmetic in our piece on real returns in Nigeria.
One habit helps when rates are falling: build a ladder. Rather than buying one large 364-day bill, buy smaller bills that mature every few months. Each maturity gives you a chance to spend, re-invest or switch to a better product, and you are never forced to sell early.
Where Pryme fits
To bid at auctions or buy bills on the secondary market, use a bank or stockbroker that offers it; the steps above explain what to look for. In Nigeria, Pryme's Investment Box (Nigeria-only, in naira) is one of four Savings Boxes and is meant for money you can leave for longer. It is not a Treasury bill and works differently from a deposit or a fund. The money in it is used to fund lending by Solid Allianze Microfinance Bank Ltd, including Spaces credit, and that lending is where its return comes from. So the return depends on how the lending book performs, and the money is held until the maturity date you agree to; it is not available before then. The rate and terms are shown in the app before you commit, and any target return is not a guarantee. Read the terms as carefully as you would a contract note.
If you prefer to choose your own bills, use a bank or stockbroker and keep the money you are waiting to invest in a Flexible Savings Box until the next auction. For how bills fit beside deposits, bonds and funds, return to the full savings guide.
Questions people ask
What is the minimum amount to buy Treasury bills in Nigeria?
It depends on the route. Primary auction bids through banks often need tens of millions of naira; Stanbic IBTC lists ₦50,001,000. Secondary-market purchases and pooled products can start from around ₦10,000 to ₦100,000, depending on the provider.
Is the Treasury bill rate the same as the interest I earn?
No. Auction stop rates are discount rates. Your actual annual yield is higher because you pay less than face value. A 15.85% discount on a 364-day bill works out to about 18.8% before tax.
Do I pay tax on Treasury bills in Nigeria?
Yes. Since the October 2025 public notice, 10% withholding tax is deducted from the discount (the interest element) when the bill matures. Federal Government bonds, including FGN Savings Bonds, remain exempt.
Can I sell a Treasury bill before it matures?
Usually yes, through your dealer on the secondary market. The price depends on rates at the time, so you may receive more or less than the value you expected at maturity.
Are Treasury bills safe?
They are obligations of the Federal Government, so credit risk is very low. They are not covered by NDIC deposit insurance, and early sale can mean a lower price.
Sources
- Nairametrics: NTB auction of 7 October 2026, 364-day stop rate 15.85% · accessed Oct 2026
- Nairametrics: NTB stop rates fall after the September 2026 rate cut · accessed Oct 2026
- Nairametrics: CBN offers N450 billion at the 14 October 2026 NTB auction · accessed Oct 2026
- Stanbic IBTC: Treasury Bills FAQs · accessed Oct 2026
- NairaCompare: how Treasury bills work in Nigeria · accessed Oct 2026
- Templars Transcripts (Tax), October 2025: FIRS public notice on WHT on short-term securities · accessed Oct 2026
- BusinessDay: banks deduct 10% WHT on foreign-currency deposit interest from 1 January 2026 · accessed Oct 2026
- NBS CPI, September 2026: inflation slows to 14.63% (Nairametrics) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.