Short-term debt securities issued by the Federal Government of Nigeria through the Central Bank, available in 91-day, 182-day, and 364-day tenors. They're sold at a discount to face value and redeemed at par on maturity, making the difference your return. T-bills are considered the safest naira-denominated investment available.
The CBN holds primary market auctions fortnightly, typically on a Wednesday. Investors submit bids through authorised dealers, which are mostly commercial banks and discount houses. There are two bid types: competitive bids, where you state the discount rate you'll accept, and non-competitive bids, where you agree to take whatever rate the auction settles at.
Non-competitive bids get filled first, which is why retail investors almost always go this route. You're guaranteed allocation as long as you meet the minimum. The CBN then works through competitive bids from lowest rate demanded to highest, filling orders until the full offer amount is allocated. The marginal rate at which the auction clears is called the stop rate.
Auction results are published the same day on the CBN website and FMDQ's systems. Settlement happens the following business day (T+1). If you didn't get in at auction, you can still buy T-bills on the secondary market through your bank or stockbroker, though yields there will differ from auction rates.
The most direct route is through your bank. Walk into any commercial bank branch, tell them you want to participate in the next NTB auction, and they'll guide you through a non-competitive bid. The minimum investment is typically N50 million at auction for direct participation, but banks pool smaller amounts from retail customers.
Several fintechs have made T-bill access far simpler. Platforms like Cowrywise, PiggyVest, and Risevest let you invest in T-bills with amounts as low as N1,000 to N5,000, though you're technically buying into a fund that holds T-bills rather than owning them directly. The distinction matters if you care about counterparty exposure.
You can also buy through stockbrokers registered with FMDQ. This gives you direct ownership recorded in the CBN's scripless securities settlement system. Your broker handles the paperwork, and you'll need a CSCS account. Secondary market purchases through brokers offer flexibility since you don't have to wait for auction dates.
Nigerian T-bill yields have historically ranged from as low as 2% during the 2020 liquidity glut to above 20% during tightening cycles. The yield you see quoted is usually the discount rate, not the true yield, which means your actual annualised return is slightly higher than the headline number. For a 364-day bill, the difference can be meaningful.
T-bill rates serve as the risk-free benchmark for the entire Nigerian financial system. When T-bill yields rise, everything else adjusts: corporate bond yields, lending rates, even the returns fintech platforms advertise. That's why experienced investors watch NTB auction results closely.
One thing that catches newcomers off guard is withholding tax. Interest income from T-bills is subject to 10% WHT for individuals. Banks and platforms typically deduct this automatically, so the net yield you receive is lower than the stated rate. Companies pay the same 10% rate, making T-bills tax-efficient compared to bank deposits for corporate treasuries.
VENOBLE INSIGHT
The spread between 91-day and 364-day T-bill rates tells you a lot about where the market thinks rates are heading. When the curve is flat or inverted, it often signals that investors expect the CBN to ease monetary policy. VCORE tracks these auction results systematically, giving you a historical record of how the term structure has evolved over time.
At primary auction, banks typically require N50 million for direct participation, but they pool smaller retail amounts. Through fintechs like Cowrywise or PiggyVest, you can access T-bill-backed investments from as little as N1,000 to N5,000. Buying on the secondary market through a broker usually requires N100,000 or more, depending on the firm.
They're considered the closest thing to risk-free in naira terms because they're backed by the Federal Government. You won't lose your principal unless the government defaults on its domestic debt, which hasn't happened. However, they aren't free from inflation risk. If inflation runs higher than your T-bill yield, your purchasing power still erodes even though you've received the promised return.
A 10% withholding tax applies to the discount earned on T-bills. This is deducted at source, meaning your bank or platform remits it before you receive your proceeds. For a T-bill with a 20% discount rate, your effective post-tax return would be roughly 18%. Companies face the same 10% WHT, which makes T-bills relatively tax-efficient for corporate cash management.
Yes, T-bills are tradeable on the secondary market. You can sell through your bank or an FMDQ-registered broker before maturity. The price you get depends on prevailing market rates. If rates have fallen since you bought, you'll sell at a premium and lock in a capital gain. If rates have risen, you'll sell at a discount. Liquidity is generally good for Nigerian T-bills, especially shorter tenors.