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The short answer
When a Nigerian Treasury bill matures, the face value is paid in naira into the account your dealer or bank holds on file. You can roll it into a new bill, keep it as naira for costs in Nigeria, or convert and send it to the UK; the right choice depends on when and where you will spend the money, not on the yield alone. Withholding tax now applies to interest on short-term securities, and a UK resident normally reports the return to HMRC.
What actually lands when a bill matures
A Treasury bill is sold at a discount and repaid at face value. There is no monthly interest: your return is the gap between what you paid and what you get back. Stanbic IBTC's Treasury bill FAQ, for example, requires investors to hold a Stanbic IBTC account and keeps the bills in custody for a fee. At maturity you receive naira, in Nigeria, in an account in your name. Nothing about maturity turns the money into dollars or pounds; that is a separate decision and a separate transaction.
Since late 2025 the tax position has also changed. Law firm Advocaat (via Mondaq, 14 November 2025) reports that the Nigerian tax authority directed financial institutions to deduct 10% withholding tax at source on interest from short-term securities, naming Treasury bills, and KPMG's December 2025 note confirms the deduction is made on the payment date. Ask your dealer how it is applied to your bill and keep the confirmation; you will want it for the UK side.
The three choices
| Choice | What it suits | What to watch |
|---|---|---|
| Roll over into a new bill | Money you will not need for months and will spend in naira | New rate set at the next auction; minimums differ by dealer |
| Keep as naira in an account | School fees, rent, family support, building costs at home | Purchasing power if the naira weakens; interest on the account |
| Convert and send to the UK | A UK deposit, debt or emergency fund in pounds | The exchange rate on the day, fees, and the evidence your UK bank may ask for |
Rolling over
Primary auctions run every two weeks on Wednesdays unless the CBN advises otherwise, according to Stanbic IBTC's Treasury bill FAQ, which also gives a primary minimum of ₦50,001,000; smaller holders buy on the secondary market or through pooled orders. Minimums vary a great deal between institutions, so check with yours before assuming a rollover is automatic. The Nigeria library explains how the auctions work.
Keeping naira
If you know you will spend the money in Nigeria within a year, converting it to pounds and back again costs you two exchange spreads for nothing. Naira you will spend at home is often best left as naira, ideally in an account that earns something. See holding naira while living in the UK.
Converting
If the money is for a UK purpose, the risk you carry by waiting is currency risk: a high naira yield can be outweighed by a fall in the naira against the pound over the same period. Nobody can tell you the direction in advance. What you can control is the cost of the conversion: compare the rate you are offered against the mid-market rate and look at the fee separately.
Worked example: why the currency matters
Example only, with made-up figures. You bought a 364-day bill with ₦9,000,000 and it matures at ₦10,000,000. If your dealer deducts 10% withholding tax on the ₦1,000,000 discount, you receive ₦9,900,000, a naira return of 10% on what you put in. Suppose the pound bought ₦2,000 when you invested and ₦2,200 at maturity. Your ₦9,000,000 was worth £4,500 then; your ₦9,900,000 is worth £4,500 now. In pounds, you made nothing. Had the naira held at ₦2,000, you would have £4,950.
The lesson is not that T-bills are bad, but that their yield is a naira yield. Judge it against the currency you will spend in. Our guide to currency risk on naira investments goes further.
Moving the money if you convert
- Your proceeds are in a naira account, so any move abroad starts with buying foreign currency or using a regulated transfer service.
- If you originally brought foreign currency into Nigeria through an authorised dealer bank to buy the bills, ask whether a Certificate of Capital Importation was issued. Pavestones (via Mondaq, June 2026) notes the CBN's 2026 FX Manual has electronic CCIs registered within 24 to 48 hours of the inflow; a CCI is what supports repatriating foreign investment.
- If you bought with naira already in Nigeria, there is no CCI and you use ordinary channels.
- Keep the maturity advice, the tax deduction and the conversion receipt together. A UK bank receiving a large sum may ask where it came from.
The UK tax side
GOV.UK says UK residents normally pay UK tax on foreign income, including foreign interest, usually through Self Assessment. The discount on your bill is the return you will need to consider, whatever you decide to do with the proceeds; holding them in naira does not change the UK position. We cover this in Nigerian T-bill interest and HMRC. This is information, not tax advice.
Where Pryme fits
A Pryme Personal Account holds naira and pounds side by side, so matured proceeds can sit as naira until you decide. Swap converts when you choose: the app shows the rate and the fee before you approve. Naira you will spend at home can go into Savings Boxes, held by a licensed Nigerian microfinance bank and insured by the NDIC up to the applicable limit.
Questions people ask
Can I get my Treasury bill paid in dollars?
No. Nigerian Treasury bills are naira instruments and mature in naira. Converting to dollars or pounds is a separate transaction at the rate on the day.
Is T-bill interest still tax-free in Nigeria?
Not any more for most holders. Sources from late 2025 report a 10% withholding tax on interest from short-term securities, including Treasury bills. Ask your dealer how it is deducted.
Should I roll over my T-bills while I live in the UK?
If you will spend the money in naira later, rolling over can make sense. If you need pounds, weigh the naira yield against the risk of the naira falling before you convert.
Do I need to tell HMRC if I keep the money in Nigeria?
Generally, UK residents report foreign income whether or not it is brought to the UK. Check GOV.UK guidance on foreign income for your situation.
Sources
- Stanbic IBTC: Treasury Bills FAQs (PDF, undated) · accessed Oct 2026
- Mondaq (Advocaat Law Practice): FIRS imposes 10% withholding tax on interest on short-term securities (14 Nov 2025) · accessed Oct 2026
- KPMG TaxNewsFlash: Nigeria guidance on withholding tax on interest from short-term securities (4 Dec 2025) · accessed Oct 2026
- Mondaq (Pavestones Legal): the CBN Foreign Exchange Manual 2026 (24 Jun 2026) · accessed Oct 2026
- GOV.UK: Tax on foreign income (updated 1 Oct 2026) · 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.