Treasury bills, also known as T-bills, are loved by investors who wish to make fixed short-term returns that are guaranteed. Unlike stocks or mutual funds, T-bills are issued and backed by the government, thus having lower interest rates but the highest security. If you’re looking for an investment product that is easy to trade in and offers minimal risk, then you should consider T-bills. This article covers all you need to know about treasury bills trading in Nigeria, from how to get started, how they work as well as their benefits.
What are Treasury Bills?
T-bills are short-term government debt instruments issued by the Central Bank of Nigeria on behalf of the Federal Government of Nigeria with a maturity period between 91 to 364 days and sold through an auction at a discount price, such that the interest earned by the investor is the difference between the price paid at purchase and the bill’s face value which is the final amount received at maturity.
How are Treasury Bills Trading in Nigeria Works?
Treasury bills are usually issued by the government to fund independent operations and special projects. When a treasury bill is about to be auctioned, an advertisement is published in advance in national newspapers, inviting bids from interested investors.
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