Home » Trea­sury Bills Rate In Nige­ria 2020 By Banks (CBN)

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.

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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
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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%

182d4.9000%

364d5.2000%

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.

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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.

19 thoughts on “Trea­sury Bills Rate In Nige­ria <span class="numbers">2020</span> By Banks (<span class="caps">CBN</span>)”

  1. Are indi­vid­u­als now allowed to buy trea­sury bills in Nige­ria? I thought the CBN dis­al­lowed this late last year.…

  2. Why is some banks offer­ing high­er inter­est rate and some low­er inter­est rat, should­n’t it be a uni­form thing?

    1. 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.

  3. 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?

    1. One hun­dred mil­lion naira? Please which bank is that, i would like to know the bank. Cen­tral Bank min­i­mum require­ment is fifty mil­lion or twen­ty five mil­lion naira.

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

    1. 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

  5. Why are there dif­fer­ent min­i­mum vol­ume of cash to be used to buy a trea­sury bill across dif­fer­ent banks

  6. 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

    1. 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.

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

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