Nigerian Treasury Bills (NTB) Calculator

What Are Nigerian Treasury Bills (NTBs)?

Nigerian Treasury Bills (NTBs) are short-term debt obligations of the Federal Government of Nigeria, issued and managed by the Central Bank of Nigeria (CBN) on behalf of the Debt Management Office. They are among the oldest and most liquid instruments in the Nigerian fixed income market, with issuance dating back to 1959.

NTBs are available in three standard tenors: 91 days (approximately 3 months), 182 days (approximately 6 months), and 364 days (approximately 1 year). The CBN auctions them in the primary market roughly every two weeks, usually on a Wednesday, and they subsequently trade on the FMDQ OTC Securities Exchange in the secondary market. As Federal Government securities, they carry very low credit risk — but credit risk is only one dimension, and the full profile is set out below.

Understanding the NTB Discount Mechanism

NTBs are issued at a discount to face value rather than at par. This is the key mechanic that distinguishes them from coupon-paying bonds. Here is how it works:

• 1.You purchase an NTB with a face value of, say, ₦1,000,000 at a discount rate of 15.9% for 364 days.
• 2.The gross discount = ₦1,000,000 × 15.9% × (364/365) = ₦158,564.38. This is your discount income before tax — it is locked in at purchase as the gap between price and face value, but it is not paid out to you as upfront cash.
• 3.You pay ₦841,435.62 today. At maturity you receive the face value less the 10% WHT on your discount income: ₦1,000,000 − ₦15,856.44 = ₦984,143.56 net maturity proceeds, a net interest of ₦142,707.95 on the amount you paid.

Discount Rate vs True Yield — Why They Differ

The most important concept for NTB investors to understand is that the advertised discount rate is not the same as your actual return. Because you invest less than the face value, your return on invested capital is higher than the stated rate.

The formula for true yield is: True Yield = Discount Rate ÷ (1 − Discount Rate × Days/365)

For a 364-day NTB at a 15.9% discount rate, the gross true yield is approximately 18.90% — about 300 basis points higher. After the 10% WHT on the discount income, the net annualised yield is 17.01%. This gap is larger for longer tenors, which is why our calculator prominently displays gross and net figures for all three tenors simultaneously.

How to Use This NTB Calculator

1. Enter the face value — the bill's maturity value, not what you pay upfront. Your actual maturity credit is the face value minus the 10% WHT on your discount income.
2. Select your tenor — 91, 182, or 364 days. The live CBN discount rate for each tenor is shown automatically.
3. Optionally override the rate — if you have a specific rate from a broker or the secondary market, enter it to model that scenario.
4. Review your results — see what you pay today, your gross discount income, the 10% WHT deducted, your net maturity proceeds, and crucially your net yield vs the stated discount rate.
5. Study the bar chart — the chart compares discount rate vs true yield for all three tenors simultaneously, so you can identify which tenor gives you the best real return.

Benefits of Investing in Nigerian Treasury Bills

• —Very low credit risk: Backed by the full faith and credit of the Federal Government of Nigeria — default risk is considered negligible.
• —Tradable before maturity: NTBs trade on a deep secondary market (FMDQ), so you can sell before maturity if you need liquidity.
• —Return locked in at purchase: The discount is fixed the day you buy — you commit less cash than face value, and holding to maturity locks the return regardless of later rate moves. Note: the 10% WHT on the discount income is deducted from your maturity proceeds.
• —High liquidity: NTBs trade on the FMDQ OTC Exchange and can be sold before maturity if needed.
• —Competitive yields: With 364-day NTBs yielding around 15.9% in 2026, they remain highly competitive versus inflation.

How to Buy Nigerian Treasury Bills in 2026

There are several ways to access NTBs in Nigeria:

• 1.CBN Primary Market Auction: Bid directly through your commercial bank or stockbroker. Minimum bid is ₦50,000,000 for primary market. Auctions are held roughly every two weeks, usually on a Wednesday, and results are published the same day — see this week's auction results.
• 2.FMDQ Secondary Market: Buy and sell existing NTBs through stockbrokers at market prices. This allows you to invest at any time and exit before maturity.
• 3.Digital Platforms: Apps like Cowrywise, Risevest, Bamboo, and Trove aggregate retail NTB access with much lower minimums. Returns may vary slightly from direct market rates.
• 4.Via Money Market Funds: Many MMFs invest heavily in NTBs, offering indirect exposure with daily liquidity and lower minimums.

Frequently Asked Questions