You might have been hearing about Treasury Bills (T-Bills) for some time now, what are they?
T-Bills are short-dated securities normally issued through the CBN by the Federal Government to help manage money supply in the Nigerian economy, there is no interest in buying them but you often buy them at discounted prices whereas the Government pays you back in full.

What does this mean?
Supposing you bought a N400,000 worth treasury bill at a discount of 10%, you will have to pay just N360,000 but at the agreed return date or maturity date, the Federal Government will pay you N400,000 in full giving you a profit of N40,000.

Purchases of Treasury Bills are normally pre-advertised for those interested before the auction starts.

How do I Invest?
Treasury bills are issued and can be bought at both the Primary and the Secondary market. You will have to purchase them by sending your application through the CBN issues office or through any authorized dealer which majorly includes banks and discount houses. The easiest way is to visit your bank branch and tell them your intention, Fill and submit your application form through them. You will choose the discount rate and the amount you are applying for.

Currently, the minimum amount for buying T-Bills is N50,000. You can choose the maturity date which is the duration of the bill, i.e. how long you want your money to be in the hands of the Federal Government, there are 3 maturity dates; 91 days(3 months), 182 days(6 months) and 364 days(1 year).

Bills are normally issued on a Thursday so therefore all bids are required to be submitted from Monday till 1:30pm on Wednesday. If your bid is accepted you will be notified before close of work on Wednesday, and before 1:30pm on Thursday your bank account will be debited and the T-Bill will be issued to you.

On reaching the maturity date, your account will be credited by the Federal Government and you will receive your funds back in full.

Investing money in Treasury bills is safe because you have the guarantee and assurance of the Federal Government and you can also use them as collateral at the Bank.

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