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The short answer
Your income from a Nigerian Treasury bill is the discount: the difference between what you paid and the face value you receive at maturity. Abroad, declare that difference as investment income for the year the bill matures, converted at the rate on the day you receive it; CRA explicitly treats a T-bill held to maturity this way, as interest. Since late 2025 Nigeria has directed withholding tax on interest from short-term securities including T-bills, so check your statement for tax deducted and keep it for a credit claim.
How a T-bill pays
Nigerian T-bills are sold at a discount and repaid at face value. Bamboo's help centre describes them this way, and returns vary with the tenor. There is no coupon in between, so the income is a single amount at maturity. If you sell before maturity, you receive the market price instead, and the figure you report changes.
The Nigerian withholding
T-bill returns were long treated as tax-free in Nigeria. That changed: KPMG reported in December 2025 that the tax authority directed financial institutions to deduct withholding tax on interest from short-term securities, T-bills included, on the payment date, and that interest on federal government bonds remains exempt. Reuters, via Bizcommunity, reported the rate as 10%. Whether the deduction is a final tax for non-resident holders is not confirmed. Ask your bank or dealer what they deducted and get it in writing; see T-bill maturity proceeds abroad.
Country by country
| Where you live | How to treat the discount | Conversion |
|---|---|---|
| Canada | T4037: for a T-bill issued at a discount and held to maturity, the difference between the issue price and the amount received is interest. Sold before maturity, you may have a capital gain or loss as well. | Bank of Canada rate on the day the amount arises (CRA line 12100). |
| United States | Report as interest-type income on your return; ask a preparer how the discount on a foreign short-term obligation is timed for you. | Rate prevailing when received (IRS); no official naira rate. |
| United Kingdom | Foreign income is reported on Self Assessment. Whether HMRC treats a Nigerian T-bill discount as interest or under the deeply discounted securities rules is not confirmed from HMRC guidance; ask an adviser before filing. | A published rate, used consistently. |
Which exchange rate
The income arises in naira, so conversion matters. The IRS says to use the exchange rate prevailing when you receive the item, and notes there is no official IRS rate; posted rates from banks and other sources may be used. CRA uses Bank of Canada rates. In the UK, use a published rate source consistently. Using the maturity-date rate is the most defensible for a single payment; see exchange rates for Nigerian income.
Worked example
Example only; prices and rates are illustrative. Bola in Toronto buys a 364-day T-bill with face value ₦10,000,000 for ₦8,600,000.
| Item | Naira | At C$1 = ₦1,100 on maturity |
|---|---|---|
| Discount (income) | ₦1,400,000 | C$1,272.73 |
| Withholding at 10%, if deducted | ₦140,000 | C$127.27 |
| Net received over cost | ₦1,260,000 | C$1,145.45 |
Bola reports C$1,272.73 as interest on line 12100 and claims C$127.27 as foreign tax on line 40500, if the bank's statement confirms the deduction. If he had rolled the proceeds into a new bill instead of withdrawing them, the first bill still matured and the income still arose that year.
Reporting the holding
Income is only half of it. US persons should check FBAR and Form 8938 for the account the bills sit in; Canadian residents should check Form T1135 once foreign property costs pass CRA's threshold. See reporting Nigerian accounts abroad.
What to keep
- The purchase confirmation showing face value, price, tenor and dates.
- The maturity advice showing the amount paid and any tax deducted.
- The exchange rate on the maturity date and its source.
- Bank statements showing the cash movements.
Discount, yield and what you actually earned
Quoted T-bill rates are annualised and can be expressed on the discount or on the price paid, so the headline figure is not the same as your income. As at June 2026, Bamboo's help centre said returns could go as high as 16.79% a year depending on the tenor; check the live rate on your platform. For tax, ignore the quoted rate and use the naira amounts: what you paid and what you received.
Example only: in Bola's case the ₦1,400,000 discount on ₦8,600,000 paid is a return of about 16.28% on cost over 364 days (1,400,000 ÷ 8,600,000). In Canadian dollars the return also depends on what the naira did against the Canadian dollar over the year, which is why the income is converted at the maturity-date rate rather than the purchase rate.
Selling before maturity
T4037 notes that a T-bill sold before maturity may give a capital gain or loss in addition to the interest element. Keep the sale confirmation showing the price, and ask your dealer how much of the proceeds represents accrued discount. The split affects which line of your return each part goes on.
Where Pryme fits
When a bill matures, the naira can be received into a Pryme multicurrency account and either kept in naira or converted with Swap, which shows the rate and the fee before you approve. The dated Swap record helps if you convert on the maturity date and want the same rate in your tax figures.
Questions people ask
How is Nigerian T-bill income taxed in Canada?
CRA's T4037 says the discount on a T-bill held to maturity is interest. Report it on line 12100 at the Bank of Canada rate on the day it arises.
Are Nigerian T-bills still tax-free?
No longer, according to KPMG and Reuters reports: since late 2025 withholding tax applies to interest on short-term securities including T-bills. FGN bond interest remains exempt.
Which exchange rate do I use for T-bill income?
The rate on the day you receive the money is the usual approach; the IRS, CRA and HMRC each accept consistent published rates.
Can I claim credit for the Nigerian withholding?
If tax was actually deducted and you have the statement, it can support a foreign tax credit, subject to your country's limits.
Sources
- CRA T4037 Capital gains · accessed Oct 2026
- CRA: Line 12100 – Interest and other investment income · accessed Oct 2026
- KPMG TaxNewsFlash: Nigeria guidance on withholding tax on interest from short-term securities (Dec 2025) · accessed Oct 2026
- Bizcommunity (Reuters): Nigeria to impose 10% withholding tax on interest on short-term securities · accessed Oct 2026
- IRS: Foreign currency and currency exchange rates · accessed Oct 2026
- Bamboo Help: How do the Bamboo Treasury Bills work? · 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.