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The short answer
For a Canadian resident, the CRA's line 12100 guidance says the difference between the price you paid for a treasury bill and the amount you received when it matured is reported as interest, not as a capital gain. A matured bill is reported in the year it matures, in Canadian dollars; selling before maturity can also produce a capital gain or loss. The naira is not on the Bank of Canada's daily rate table, so you need another rate source that meets the CRA's conditions and you must use it consistently.
Nigerian treasury bills pay no coupon. You buy them below face value and the Federal Government pays the full face value at maturity; the gap is your return. UBA's guide to Nigerian T-bills describes exactly this: bills of 91, 182 or 364 days, sold at a discount, with no monthly interest. For a Nigerian living in Canada and still buying bills through a bank at home, the question is what the Canada Revenue Agency calls that gap, when it goes on the return and at what exchange rate.
The CRA's answer: the discount is interest
The CRA's page for line 12100 (interest and other investment income, modified 20 January 2026) deals with T-bills directly. If a bill matured in the year, you report as interest the difference between the price you paid and the proceeds shown on your slip or account statement. The rule does not depend on where the bill was issued, so a Federal Government of Nigeria bill held by a Canadian resident is treated the same way.
Interest is fully included in income, unlike a capital gain, where only part is taxed. That makes the classification matter. If you sell a bill before it matures, the same page says you may also have a capital gain or loss, which is worked out under Guide T4037. In practice that means splitting the result into the interest earned while you held the bill and any gain or loss caused by the price you got on the secondary market.
Which year it goes on the return
Because the longest Nigerian tenor is 364 days, a bill always matures before its first anniversary. The CRA's T-bill instruction ties the reporting to maturity: report the discount on the return for the year the bill matures. A 364-day bill bought in November 2026 therefore normally lands on your 2027 return, even though most of the time you held it fell in 2026.
Rolling over matters here. When a bank "rolls" your bill at maturity, the first bill has matured and a new one has been bought, even if no money left the account. Each maturity is a separate reporting event, and the reinvested amount, including the earned discount, becomes the purchase price of the next bill. Keep the bank's maturity advice for every cycle, not just the first purchase.
Converting naira into Canadian dollars
The CRA's line 12100 page says foreign interest is reported in Canadian dollars, using the Bank of Canada rate for the day the amount arises. Here Nigerians hit a practical problem: the Bank of Canada's daily table, as at 23 October 2026, lists 24 currencies against the Canadian dollar and the naira is not one of them.
Income Tax Folio S5-F4-C1 allows another source, such as Bloomberg, Thomson Reuters or OANDA, if it is widely available, verifiable, published by an independent party, recognised by the market and used consistently from year to year. Pick one source that quotes NGN against CAD, note it in your records and keep using it. Switching sources to get a better figure in a given year is what the consistency condition is meant to stop.
There is a second question: whether to convert the naira discount at the maturity-date rate, or to convert the purchase price and the proceeds separately, each at its own date's rate. The second method folds the naira's movement into the figure you report. The folio's principle is that each amount is converted on the day it arises; if your figures are large or the naira moved sharply while you held the bill, ask a Canadian tax professional which method fits your facts, and then apply it every year.
Worked example (illustrative figures only)
| Item | Naira | CAD at example rate |
|---|---|---|
| Face value of a 364-day bill | ₦10,000,000 | |
| Price paid at auction | ₦8,700,000 | |
| Discount received at maturity | ₦1,300,000 | CAD 1,300 at an example ₦1,000 = CAD 1 |
| Reported on line 12100 (year of maturity) | CAD 1,300 |
The example rate is for illustration, not a current rate. Actual auction prices depend on the stop rate on the day: as at 7 October 2026, Nairametrics reported a 364-day stop rate of 15.85%. Your bank's purchase confirmation shows the price you actually paid.
Nigerian tax and the foreign tax credit
UBA's 2022 guide said T-bill income was not taxed in Nigeria. Nigeria's tax law was rewritten from 1 January 2026, so treat that as a statement to recheck with your bank rather than settled law. What matters on the Canadian side is simple: if no Nigerian tax was withheld, there is no foreign tax credit to claim and the full discount is taxed in Canada. If tax was withheld, the CRA's line 12100 page says not to subtract it from the income; claim a foreign tax credit instead, using the bank's deduction advice as evidence (Folio S5-F2-C1).
T1135 and the records to keep
Bills held through a Nigerian bank are property held outside Canada. Form T1135 applies when the total cost of your specified foreign property went above CAD 100,000 at any time in the year, according to the CRA's T1135 questions and answers. Count the cost of your bills alongside Nigerian bank balances and land when you test that threshold; see T1135 and Nigerian bank accounts.
- Purchase confirmation showing tenor, face value and price paid.
- Maturity or rollover advice for each cycle.
- Any withholding tax deduction advice from the bank.
- A note of the exchange-rate source you use and the rates applied.
What to check first
- List every bill that matured in the tax year, including rollovers.
- Work out the naira discount on each from the bank's documents.
- Convert using one consistent source that quotes NGN against CAD.
- Report the total on line 12100 and check whether T1135 applies.
For the wider picture of how T-bill income fits a Canadian return, see Nigerian T-bill interest and the CRA, and for rolling bills from abroad, managing a maturity or rollover from Canada. How to buy bills in the first place is covered in How to buy Treasury bills in Nigeria.
Where Pryme fits
A Pryme account holds NGN, USD, GBP and EUR with local account details for each, so maturity proceeds can stay in naira until you decide to convert. With Swap the rate is shown first and the fee on its own line before you approve. You can generate a verifiable statement through VerifyDoc.ai (receipts and statements) to keep with your tax records. Naira deposits are held by a licensed Nigerian microfinance bank.
Questions people ask
Is a Nigerian T-bill discount a capital gain in Canada?
No, if you hold the bill to maturity. The CRA's line 12100 page says to report the difference between the price paid and the proceeds as interest. Selling before maturity can add a capital gain or loss.
When do I report a T-bill bought in one year that matures the next?
The CRA's instruction is to report the discount for the year the bill matures. Each rollover is a new bill with its own maturity.
What exchange rate do I use for naira?
The Bank of Canada does not publish a naira rate. Folio S5-F4-C1 allows another widely available, independent, market-recognised source used consistently every year.
Do I need to file T1135 for Nigerian T-bills?
Possibly. Count their cost with your other foreign property; if the total cost went above CAD 100,000 at any time in the year, T1135 is required.
Sources
- CRA: Line 12100, Interest and other investment income (modified 20 Jan 2026) · accessed Oct 2026
- CRA: Income Tax Folio S5-F4-C1, Income Tax Reporting Currency (updated 27 Jun 2024) · accessed Oct 2026
- Bank of Canada: Daily exchange rates (table dated 23 Oct 2026) · accessed Oct 2026
- CRA: Questions and answers about Form T1135 (modified 19 Oct 2026) · accessed Oct 2026
- UBA 57 Marina: How to invest in Treasury bills in Nigeria (Nov 2022) · accessed Oct 2026
- Nairametrics: DMO raises N968.47 billion as 364-day stop rate falls to 15.85% (7 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.