What Are Treasury Bills in Nigeria Explained

Treasury bills are short-term loans you make to the Federal Government, repaid with interest in up to a year. They are among the safest naira investments, and their rates are a window into interest rates and the health of the exchange rate.

How they work

• The government borrows — issuing bills through the CBN.
• You buy at a discount — pay less now, get the full value at maturity.
• You are repaid — in naira, with the gap as your return.

Bills, rates and the naira

When T-bill rates rise, they can draw money — including foreign portfolio investment — toward the naira, supporting it; when they fall, the opposite. For savers weighing naira returns against dollar protection, this is one side of the naira vs dollar savings question.