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The short answer
Yes. A Nigerian treasury bill can be sold before it matures in the secondary market, usually back to the bank, broker or dealer that holds it for you; this is often called rediscounting. You send a signed instruction, and the price depends on current market rates and the days left, so you get back less than the full face value and may earn more or less than you expected.
How early sale works
Treasury bills are tradable. Stanbic IBTC's undated FAQ says you can terminate a bill at any time because bills are 'highly liquid and tradable in the secondary market'. Parthian Partners also says bills can be sold before maturity on the over-the-counter market. In practice your dealer buys the bill from you, or finds a buyer, at the current market rate for the remaining days.
How to request it
- Contact the bank, discount house or stockbroker that holds the bill (your custodian).
- Send a signed instruction letter stating the bill, the face value and that you want to sell. Stanbic IBTC asks for a signature-verified letter, an email indemnity if you instruct by email, and your investment certificate.
- Ask for the quoted rate and the net amount you will receive, after any charges.
- Confirm when the money will be credited and to which account.
Apps differ; on some you sell from within the app. Check each provider's terms. Stanbic IBTC's FAQ does not state an early termination penalty; its answer to that question is left blank, so ask your provider directly.
How the price is worked out
A bill pays its full face value at maturity. Before then it is worth less, by an amount that depends on two things: the number of days left and the market discount rate today. If market rates have risen since you bought, the buyer demands a bigger discount and you receive less; if rates have fallen, you receive more.
Worked example (illustrative)
Example, using a simple discount on a 365-day year (your bank's exact convention may differ): you buy a 364-day bill with ₦1,000,000 face value at a 15.85% discount rate, the one-year stop rate at the 7 October 2026 auction.
| Step (example) | Calculation | Amount |
|---|---|---|
| Price you pay | ₦1,000,000 × (1 − 0.1585 × 364 ÷ 365) | ₦841,934 |
| Return if held to maturity | ₦1,000,000 − ₦841,934 | ₦158,066 |
| Sell after 182 days at 15.85% | ₦1,000,000 × (1 − 0.1585 × 182 ÷ 365) | ₦920,967 (gain ₦79,033) |
| Sell after 182 days if rates rose to 17% | ₦1,000,000 × (1 − 0.17 × 182 ÷ 365) | ₦915,233 (gain ₦73,299) |
| Sell after 182 days if rates fell to 15% | ₦1,000,000 × (1 − 0.15 × 182 ÷ 365) | ₦925,205 (gain ₦83,271) |
In every case you keep a gain for the time you held the bill, but the size moves with rates. A dealer's margin and fees reduce these amounts. With a large rate rise and a short holding, the gain can shrink further.
Ask the dealer to show its quote as a price per ₦100 of face value and as an annual yield. That lets you compare it with the latest auction stop rate for a similar tenor and see how much margin it is taking. If two banks quote very different prices for the same bill, you can sell to the better one only if your bill can be moved between custodians in time, so ask about that first.
Costs and catches
- Dealer margin: the rate you are quoted to sell is usually a little above the rate the dealer would sell at, which lowers your price.
- Fees: Stanbic IBTC lists a ₦300 transaction fee plus VAT and custody of 0.05% of face value plus VAT; ask what applies to a sale.
- Timing: a sale request after the daily cut-off may be processed the next working day. Stanbic IBTC gives secondary trading hours of 10 a.m. to 4 p.m., Monday to Friday.
- Money market funds may suit better if you are unsure you can hold to maturity, though they have their own holding periods; ARM's September 2025 factsheet states a 90-day minimum holding period for its money market fund.
What to check first
- The remaining days on your bill.
- Today's market rate for that tenor and the dealer's quote.
- The net amount after all charges, in writing.
- Whether you could wait for maturity instead.
Related: how treasury bill auctions work, primary vs secondary market treasury bills and rollover at maturity.
When selling early makes sense
Selling is usually the last option, after cheaper ones. It can make sense when you need the money urgently and have no buffer, when rates have fallen since you bought so the sale price is higher than expected, or when you want to move into an instrument paying more and the gain outweighs the costs. It makes less sense a few days before maturity, when waiting returns the full face value at no cost. Plan for it by matching each bill's maturity to when you expect to need the money, using the tenor guide.
Where Pryme fits
Pryme does not hold treasury bills. If you sell a bill and the proceeds land in a Pryme account, a Naira Flexible Box can keep them apart until you decide what to do; the rate is shown in the app.
Questions people ask
Can I liquidate my treasury bills before maturity in Nigeria?
Yes. Ask the bank or dealer holding the bill to sell it in the secondary market. You receive the current market price, not the full face value.
Is there a penalty for breaking treasury bills?
There is usually no fixed penalty, but you get a market price that may be lower than expected, plus dealer margin and fees. Ask your provider.
How long does it take to sell a treasury bill?
Usually within a working day or two once you instruct the dealer, depending on its cut-off times. Confirm with your provider.
Will I lose my interest if I sell T-bills early?
You keep a return for the days you held the bill, but its size depends on market rates on the sale date.
Sources
- Stanbic IBTC: Treasury Bills FAQs (undated; indicative rates dated Aug 2023) · accessed Oct 2026
- Parthian Partners: Treasury Bills in Nigeria, what they are and how they work (modified 24 Jun 2026) · accessed Oct 2026
- Nairametrics: DMO raises N968.47 billion as 364-day stop rate falls to 15.85% (7 Oct 2026) · accessed Oct 2026
- ARM Money Market Fund factsheet (Sept 2025) · 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.