Treasury Bills Rate In Nigeria 2020 By Banks (CBN)

Knowing the treasury bills rate in Nigeria 2020 will help you to have an insight on the interest rates that the financial institution we have in this country, especially the bank offers to investors.

I will only update the interest rates of banks and the central bank of Nigeria, can’t promise for other financial institutions like the merchants or the stock brokers. However, you can assist me with that.

You can say that Treasury Bills (Nigerian Treasury Bills – NTBs) are non-interest bearing instruments. It’s a short term debt instruments issued by the Central Bank of Nigeria  (CBN) on behalf of the Federal Government to finance local debts.

Treasury Bills (T-bills) rates serve as a benchmark for short-term rates in the economy. The T-bills can be bought from primary and secondary markets.

Treasury bills are available in the secondary/ primary market in the following tenors 91, 182 and 364 days at rates determined by auction and varies from amount to amount, investor to investor and tenor to tenor.

Before diving more into the treasury bills rate in Nigeria 2020, let me further explain more about T-bills.

Please Know that for primary market auction, you are expected to bid for Treasury bills using your desired rate, the bank can, however, advise on the last successful stop rate to guide your bidding.

You can also request that yourppreferred bank processes the bid on your behalf using their rates.

Nigeria Treasury Bills are a discounted product of CBN for which interest is paid up-front.

The interest rate is discounted and calculated per-annum i.e. you will be paid your interest at the beginning of the investment and it is not a flat rate as it’s divided by 12 months or 365 days.

The minimum bid amount of 1 million is allowed for both primary and secondary market and in the case of pre-liquidation, a one-month notice is required.

The Primary market bids are done fourth nightly on Wednesdays (i.e. every two weeks) this implies that if you intend to invest in Treasury Bills this week, your request form should have been received before 2 pm on the preceding Tuesday.

The next Treasury Bill auction is scheduled to hold on January 14, 2020, and you can buy directly from banks, just walk into any bank that you’re comfortable with and request for the form.

Tenors of the T-bills

Like i said before, there are three tenors or duration that an investor can invest in the treasury bills in Nigeria, they are;

91 Days: This is the least tenor or duration that you can invest in the T-bills, you can say it is just a three months investment. On this very tenor, the interest rate may be lower compared to other tenors.

182 Days: The second tenure or duration that you can get on the treasury bills in Nigeria. This is one of the common or popular duration that investors do go for, usually have a good amount of interest rate especially when you’re buying from investment bankers.

364 Days: The 364 days is the longest period that you can invest, actually a duration of one year.

The longer the tenor, the higher the treasury bills rate in nigeria. So leaving it for a maximum period of one year is recommended.

Currently in the month of January, treasury bills in Nigeria is usually very low, this is because of the festive season of Christmas and new year.

Many investors and bank customers withdraw lots of money from their account on this period, this makes it difficult for banks to offer a good treasury bills rate in nigeria.

For now i have some banks T-bills rates in 2020, will try to get more as i can and will keep on updating this post.

Features

The features of the T-bills in Nigeria are as follows;

  • They are negotiable
  • They are used to finance the Federal Government of Nigeria’s local currency deficit; and to finance the national debt and control the level of money supply in the system.
  • They are issued for liquidity management purposes
  • It is considered to be risk free because the government will always honor its local currency obligations.

Eligibility

Local investors, PFAs, Nigerian citizens, corporate organizations are eligible to invest in the Nigerian treasury bills.

Requirements for Treasury bills

The requirements for the primary and the secondary market are as follows;

  • Auction requirements
  • Completed bid form and custodial form.
  • Account officers will confirm accounts are funded and the discounted values have been placed under lien. Please note that a mail advising of the status will be required.
  • Client’s completed form must be forwarded to the group email on or before 5pm on the preceding day of the auction.
  • A bid is yet to be included until they bank receive a client’s instructions/advice as explained

Treasury bills rate in Nigeria 2020

Treasury bills rate in Nigeria 2020

Please note that these rates here do changes on weekly basis, so what i’m trying to do is to give you an insight on the rates banks offers on T-bills.

1. The central bank treasury bills rate

The cbn is the primary market in the treasury bills in Nigeria.

The central bank of Nigeria sell the T-bills as auction, and investors are requested to quote bids following which the average minimum bid is selected.

As at 2020, the minimum amount you will invest in the primary T-bills is fifty million naira (N50,000,000).

The last treasury bills that central bank offered was;

91d  –  3.5000%

182d – 4.9000%

364d – 5.2000%

2. Fidelity Bank treasury bills rates in 2020

Fidelity banks offers treasury bills on durations like 91, 182 and 364. The minimum amount that you can invest in the bank as at January 2020 is one million naira.

1. For 91 days, you will get an interest rate of 3.5000%

2. For 182 days, you will get an interest rate of 4.9000%

3. Then lastly for 365 days, you will get an interest rate of 5.2000% respectively.

To apply for fidelity bank treasury bills, you can do it online or offline. For online, you can download the T-bills form, fill it and send it to true.serve@fidelitybank.ng.

For offline which is better off as you can negotiate with the bank on the interest rate offered to you.

3. Gtbank treasury bills rate in Nigeria 2020

Gtbank treasury bills rates are quite commendable, and the least minimum amount of money to invest is N100,000.

The January 2020 gtbank T-bills rates are as follows;

1. For 91 days, you will get an interest rate of 9.74%

2. For 180 days, you will an interest rate of 10.75%

3. For 365 days, you will get an interest rate of 11.39% respectively.

To invest on gtbank treasury bills, you need to visit any bank branch and liaise with the account manager in order to process your request.

You can also request for one through internet and mobile banking.

To do that, click on “My Account” and select” Account Manager” or alternatively, send “CONTACT (NUBAN) to 08076665555 using your registered mobile number with the bank.

4. Stanbic ibtc bank T-bills rates

In this month of January 2020, stanbic ibtc bank offers similar rates just like the central bank, they are

For 91 days is –  3.5000%

For 182 days is – 4.9000%

For 364 days is – 5.2000%

5. United bank for Africa treasury bills rates (UBA)

For now i’m yet to get uba treasury bills rate in Nigeria 2020, but so far their minimum amount to invest is N500,000.

When you go to the bank, the account manager will present their rates for that week and you’re free to negotiate.

Uba treasury bills rates do changes a lot, what the bank offers this week, might not be what they will offer next or two weeks after.

Also, note that the bid rate for customers is as advised by Treasury by e-mail based on market trend and expectations.

6. Ecobank T-bills rates in Nigeria 2020

Ecobank tenors are tenors including the 91, 182 and 364 Days. The banks offers these treasury bills rate in nigeria ;

1. For 91 days, you will get an interest rate of 3.10%

2. For 182 days, you will get interest rate of 4.10%

3. For 364 days, you will get an interest rate of 4.50%

To invest on Ecobank treasury bills, you will have to visit any of their branches and book for your treasury bills investment.

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So far, these are the banks that i’ve their treasury bills rate in Nigeria 2020, as days goes by i will keep updating it more banks and rates.

32 thoughts on “Treasury Bills Rate In Nigeria 2020 By Banks (CBN)”

    • Why is Mrs obi selling a cup of rice for N100 while Mrs Bola is selling at N60 per cup? Why is Mtn offering 1.5GB data for N1000, while Glo is 2.3GB for same price? It can’t never be the same, it is pure business. A bank can offer high interest rates to get or attract investors.

      Reply
    • Good Afternoon sir , Banks have their own way if doing business with funds ,so rates are not uniformed with banks.
      Regards

      Reply
  1. I was at a bank today to make enquiry about treasury bill and I was told that the interest rate is now 4% and the least volume of offer is 100,000,000.00. Why is it so?

    Reply
  2. UBA Bank. Palmgroove branch. Infact she said the maximum volume of offer is 300,000,000.00 @ 4.5% interest rate for one year

    Reply
    • I will contact uba based on this, but all i know is that primary market which is the central bank is where you can spend up to such amount of money, and the secondary markets which includes banks and other financial institutions offers as low as N100,000

      Reply
  3. Hello Missybanker what is the current rate of treasury bill for GTB (month of March). Please how can i invest in bonds? apart from bond and treasury bill, which other safe investment can i invest in with 1million

    Reply
    • I don’t have any idea or the current rate for gtbank treasury bills, and also about bonds. Bonds is the next investment i’m looking into. For now I’m only sure of fixed deposit, treasury bills, bonds and stocks if you’re looking for the best financial investment in Nigeria.

      Reply
  4. Thanks for your enlightenment. Which bank would you advise for best returns / interests on treasury bills currently?

    Reply
  5. Good afternoon Sir/ma. I really want to appreciate the brain behind this platform, i was just searching the internet trying to get the current rates on FG investment instruments and i stumbled on this page.

    What i had read so far, gives 100% information of the investment industry, thank you.
    I am an Investment Advisor / Wealth Portfolio Manager and i am glad to find myself here.

    More grace and God bless

    Reply
    • Actually the last rate they gave to me was 4.5% from hundred to five hundred thousand, and that was in early March. Because of the lockdown, i haven’t been able to to get their latest rates. But i’m sure it is very low.

      Reply
  6. Thank you,it’s really helpful at this time,I hope the recession won’t affect t bills,please want is the rate at access bank

    Reply
  7. I heard due to the lockdown, Treasury bill has been suspended from March/April 2020. Please how true is this?

    Reply

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