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seun adebisiA couple of weeks back, I wrote on how you could protect yourself from inflation by investing in mutual funds.

Now, another way to achieve this, is investing in treasury bills. If you have a low risk appetite, or simply have excess cash, you may want to consider investing in treasury bills.

So what are treasury bills?

Treasury bills are short term debt securities issued by the Central Bank of Nigeria (CBN). This is a way for the Federal Government through the CBN to raise funds. Essentially, you are lending money to the Government.

What is the Discount/Interest Rate?

Discount/Interest rate vary depending on the financial institution or authorized dealer the interest is usually paid upfront and credited to your account. The rates are usually between 11%- 17%. So for example if you buy T- bills worth N100,000 at 10% interest/discount rate, the bank or authorized dealer will debit your account by N90,000 leaving a balance of N10,000 which is your interest, upon maturity, the principal sum of N100,000 will be repaid.


T-bills are short term and are usually issued for a period of 91 days, (3 months) 182 days (6 months) or 364 (One year) days after which the instrument matures

treasury bills

What are the Risks?

There is almost no risk attached to T-bills, they are one of the safest forms of investment and this is because T-bills are backed by the guarantee of the Federal Government of Nigeria, you are almost certain to get your returns and principal upon maturity.

Where Can I buy T-bills?

T-bills could be purchased from an authorized dealer or a banking institution. You may simply fill an application form with the desired bank or authorized dealer and credit your account with the sum you so wish to invest.


T-bills are risk free, tax exempt and highly liquid, they also provide a steady stream of income, and can be used as a collateral. You can start by visiting Access Bank today for more info.

Photo credit: Proshare Nigeria

By: Seun Adebisi

Read also: #Pecunia – Just Do It!

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