Amina sat at her desk, gazing at the fluctuating stock market reports- scared and confused. Following recent market turbulence, she realized the importance of finding a more stable investment to safeguard her hard-earned savings. That’s when she stumbled upon an opportunity that would change her financial story – treasury bills, popularly known as T-bills.
She discovered that the Federal Government of Nigeria was about to release another set of T-bills for investors to buy. This sparked her curiosity: “What are these treasury bills, and why is the Federal Government selling them? Do treasury bills have any history? Are you sure we are not benefiting those Nigerian politicians?”
If you share Amina’s curiosity about what makes T-bills special, here are 10 need-to-know facts about treasury bills in Nigeria:
1. Treasury Bills, or T-Bills, are a major part of the Nigerian government’s finances. The first treasury bills were issued in April 1960. They serve as a means for the government to borrow money from the public to fund projects and control inflation.
2. Another fact about treasury bills are a low-risk way to grow your money.
3. T-Bills are not just for the wealthy; they are accessible to everyone with a surprisingly low minimum investment, making them suitable for budget-conscious Nigerians.
4. T-Bills are issued by the Central Bank of Nigeria and backed by the full faith of the Federal Government. They offer a secure investment option, giving you peace of mind as an investor.
5. This investment option has a maturity ranging from 91 days to 364 days.
6. However, unlike other investment options, T-Bills can be sold before their maturity date, providing flexibility to investors. So, if you want to hop on the T-Bill train for a few days or a couple of months, you can do that!
7. With T-Bills, investors can predict their profit in advance. Your profit is the difference between the purchase price and the price just before you sell it (whether you wait for its maturity date or not).
8. The Central Bank of Nigeria conducts auctions frequently to address inflation issues and fund government projects, with interest rates varying based on market conditions. Always have your eyes on the lookout for one of these auctions.
9. In Nigeria, investors have three main options: Treasury bills (safest with guaranteed returns), Mutual funds (offering variety and potential for higher returns), and Bonds (providing a steady stream of income with slightly more risk).
10. Bravewood Max offers accessible treasury bills corresponding to CBN-issued rates, allowing investors to earn up to a 21% interest rate, with easy investment through the Bravewood app.
Did you learn something new from our list of interesting facts about treasury bills in Nigeria?
If you’re not quite comfortable yet with starting to invest in T-Bills, don’t worry. Bravewood offers a safe, high-yielding investment platform where you can start investing with as little as ₦50,000. You have the option to decide between a flexible tenure or a fixed tenure depending on how long you’ll want your money to work for you.
Simply visit the website or download the app from the App Store or Google Play Store to get started.
Bravewood is licensed by the Central Bank of Nigeria to provide investments with low risk and high returns for Nigerian professionals.
Want to safely grow your money? Choose Bravewood. We are the wealth-building partner you deserve
