I’ve been receiving some mails and WhatsApp messages from quite number of persons asking how to buy treasury bills in Nigeria, especially this year. It’s surprising that some persons thought it is a difficult one or it involves a long process.
But that isn’t actually the case, it’s so easy and wouldn’t take much of your time.
But before i continue with the topic of the post, i want everyone visiting this website to know that this website isn’t related or affiliated to financial institution.
I can’t seem to understand why someone will contact me to request for his or her statement of account, or account number and balance.
At this moment of writing this post, i don’t offer any private chat or whatsoever. The reason why i’m saying this is because of the number of chats i do get in day from blog readers.
If you have any question, please kindly drop it on the comment box and i will swiftly reply to your comment.
Back to the topic which is how to buy treasury bills in Nigeria.
Buying treasury bills in Nigeria isn’t a difficult one as some of might might think, especially if you’re buying from the secondary market.
So let me show you how you can buy T-bills in Nigeria.
How to buy treasury bills in Nigeria
You can buy T-bills in Nigeria through the followings;
- The primary market
- Secondary market
1. Buying treasury bills in Nigeria through the primary market
When you hear the primary market in treasury bills in Nigeria, then you know that that is the central bank of Nigeria.
So it you’re buying from the primary market, you need to know that you’re buying from the central bank which is main market in the T-bills.
Treasury bills are sold by auctions, conducted by the central bank of Nigeria and investors are requested to quote bids following which the average minimum bid is selected.
To buy treasury bills from the central bank, you need to have a minimum of fifty million naira (N25M) and also a stock broker.
The central bank of Nigeria auctions T-bills on biweekly usually on Wednesdays. And let me repeat it again, the least minimum amount required is fifty million naira.
The Nigeria stock exchange have made a provision for investors to easily get an active stock brokers for their financial investment.
Like for example to invest in T-bills, bonds or stocks, you need a stock broker and you can get that by going through this link list of active stock brokers in Nigeria.
For you to see the stock brokers details, you need to click on any of them and you will see their details which includes address and phone number.
Mind you, you’ll have to register with your preferred stock broker before proceeding with the investment.
Through the stock broker you’ll know the auction dates and the rates which you should bid in order not to be rejected.
2. Through the secondary market
This is where most investors like to go, the secondary market.
It is very affordable to many investors in Nigeria, with N50k you can invest in T-bills through the secondary market.
The secondary market includes banks, merchants etc. When it comes to buying of treasury bills in Nigeria through the secondary market, i prefer going to the bank.
How to buy treasury bills in Nigeria through the secondary market only requires you to head over to your preferred financial institution, be it banks or merchants.
Request that you want to invest in treasury bills, and you’ll be issued a form to fill having agreed to their terms which includes the minimum amount, interest rates and tenors.
Duly fill the form with your correct details and signature and submit it back to the bank. You can deposit your money to your investment account through transfer or by cash if you have it with you.
Note before investing in T-bills through the secondary market, first make an inquiry regarding their interest rates, tenors, and minimum amount plus how good and trusted the financial institution is.
That’s why i prefer going to the bank to invest in T-bills than any other merchants. Banks are trusted and reliable compared to other brokers offering T-bills.
From the month of April till now that i’m writing this post, the federal government through the central bank of Nigeria haven’t auctioned any T-bills to the public.
This is majorly caused by the pandemic and the lockdown, but from what i heard, they will resume on the month of July.
Tenors of the T-bills
There are three tenors that an investor can invest in the treasury bills in Nigeria, they are as follows;
91 Days: This is the least tenor that you can invest in the treasury bills. The interest rate our financial institutions do offer for this particular tenor is usually low compared to the other two below.
182 Days: The second tenure that you can get on the treasury bills in Nigeria. This is the most sort after tenor in investment, as some investors are not willing to invest for a longer period of time.
364 Days: The 364 days is the longest period that you can invest, actually a duration of one year. This tenor do have a good interest rate and returns on investment.
If you’re willing and have the patient, you can invest for one year and gets a good return on investment (ROI).
With the three tenors and the two markets, it is actually how to buy treasury bills in Nigeria.
Features of T-bills in Nigeria
Some good features of treasury bills includes the followings;
- The Nigerian treasury bills are issued on discount by the government, through the central bank.
- The minimum requirement is fifty million naira for the primary market and fifty thousand naira for the secondary market.
- The tenors are 91 days, 182 days and 364 days respectively
- The repayment of the bill is made at par on the maturity of the term.
- Anybody can invest in the treasury bills in Nigeria, be it individuals, firms, companies etc.
- It is a negotiable instrument, you can negotiate the interest rate, the duration and the amount which you are willing to invest.
- Thanks to technology and modern banking era, you can buy the Nigeria treasury bills through mobile app other than heading to the financial institution.
You can go through this link to understand more about T-bills and how it works in Nigeria
With this i hope i’ve answered your question how to buy treasury bills in Nigeria.