What are Treasury Bills?
Treasury Bills are short term government debt instruments issued by the CBN. This is one of the several ways the government raises funds. The CBN also uses treasury bills to control money supply in the economy.
How are Treasury Bills Sold?
Treasury Bills are sold through a bi-weekly auction conducted by the CBN. Buyers are requested to quote bids following which the average minimum bid is selected.
Where can I buy Treasury Bills?
Treasury Bills can be bought through any official dealer/Agent/Bank. ARM Securities can also help you buy your Treasury bills.
When is it usually sold?
Treasury Bills are sold every other Wednesday (bi-weekly) as announced by the CBN. The CBN announces issuances on their website and in the pages of the Newspaper. This information can also be found on the DMO’s (Debt Management Office) website.
How Can I Buy Treasury Bills?
Simply complete our T-bills application form and fund your account with the desired value.
Are Treasury Bills Safe?
Treasury Bills are one of the safest forms of investment and are backed by the full faith and credit of the Federal Government of Nigeria
Apart from the Interest Rates what are the benefits?
- A good source of steady stream of income
- Treasury Bills are a good investment outlet for your free and disposable cash
- Treasury Bills are good investments for people who wish to save
- Treasury Bills are also tax free
- Treasury Bills are very liquid and can be converted to cash quickly
- They can be used as a collateral
Are Treasury Bills Taxable?
Interest derivable from Treasury Bills are not taxable.
Bidding Process
What is the bid rate?
The bid rate otherwise called your STOP RATE is the likely interest rate that you have indicated to receive for the principal that you are investing in the T-bills.
What if I don’t have a Bid rate?
If you do not have a Stop Rate or you are not sure of a rate you can select the prevailing market rate option on the application form.
Can I still buy if my Bid is Rejected?
Yes, you can purchase T-bills from the secondary market by completing the same T-bills application form.
TENURE AND MATURITY
What are the durations (tenor) for the T-Bills?
T-bills are usually for 91days, 182days and 364 days.
Can I sell before Maturity?
Yes, you can sell T-bills before maturity.
When is the interest paid?
The interest element of a treasury bill is paid to you upfront and credited to your bank account.
Can I roll over my Investment?
Yes you can roll over your Investment
Would you like to invest in Treasury Bills or make further enquiries about adding Treasury Bills to your investment portfolio, contact us on 0700 CALLARM (0700 2255 276) or send an email to [email protected].
