Treasury Bills Rates in Nigeria Fall to 15.85%: A Simple Guide

Nigeria's one-year (364-day) Treasury bill rate fell to 15.85% at the auction on 7 October 2026, down from 15.89%, while the 91-day and 182-day rates stayed at 15.50% and 15.80%. That 15.85% is a discount rate; the actual annual return on the money you invest, called the true yield, is about 18.83%. Rates are drifting lower after the Central Bank of Nigeria cut its policy rate from 26.5% to 23% in September.

Latest Treasury bill auction results (7 October 2026)

In total, the Debt Management Office, through the CBN, offered ₦900 billion, received about ₦1.77 trillion in bids and sold ₦968.47 billion. Almost all the demand went to the one-year bill, which drew about 2.4 times the amount offered.

How far rates have fallen

The one-year rate has come a long way down. It was 17.70% at its third-quarter peak on 8 July and 16.84% on 2 September, according to Nairametrics. The 15.85% recorded this week is 185 basis points (1.85 percentage points) below that July peak.

What is a Treasury bill?

A Treasury bill (T-bill) is a short-term loan you give to the Federal Government. You lend for 91, 182 or 364 days, and the government pays you back in full at the end. It is considered one of the safest naira investments because it is backed by the government.

Discount rate vs true yield, with a naira example

T-bills are sold at a discount. You pay less than the face value today and receive the full face value at maturity.

Say you buy a 364-day bill with a face value of ₦1,000,000 at a 15.85% discount rate:

• Discount: ₦1,000,000 × 15.85% × 364/365 ≈ ₦158,066
• You pay today: about ₦841,934
• You receive at maturity: ₦1,000,000
• Your gain: ₦158,066 on ₦841,934 invested, which is about 18.8%

That is why the 15.85% stop rate translates to a true yield of about 18.83%. (Bank or broker fees, if any, would reduce this slightly.)

Why T-bill rates are falling

1. The CBN cut rates. On 22 September the Monetary Policy Committee cut the Monetary Policy Rate (MPR) by 350 basis points to 23% and set the corridor at +50/-300 basis points, putting the lending facility at 23.5% and the deposit facility at 20%.
2. Inflation is easing. Headline inflation was 15.39% in August, down from 15.43% in July, with the CBN aiming for single digits.
3. Strong demand. When many investors want the same bills, the government can borrow more cheaply.

One twist: the CBN's own OMO bills are paying more. The 182-day OMO stop rate was 16.92%, about 112 basis points above the matching Treasury bill, according to BusinessDay, which some analysts say is pulling money away from T-bills.

Treasury bills vs fixed deposit vs stocks

• T-bills: fixed, government-backed return; your money is locked until maturity unless sold on the secondary market.
• Fixed deposits: similar idea through a bank; rates depend on the bank and amount, and are often lower than T-bill yields.
• Stocks: no fixed return and prices can fall, but over the long run they can grow faster. The NGX All-Share Index is up 59.60% this year, though it fell 0.97% last week.

What this means for investors

Falling T-bill rates mean new savers will lock in slightly lower returns than a few months ago, though the true yield of about 18.8% is still above August inflation of 15.39%. If rates keep falling, money may gradually shift towards equities and longer-term bonds. Understanding the difference between the discount rate and true yield helps you compare offers fairly. The Gopexly Academy covers these basics step by step.

This is for information only and is not investment advice.

FAQ

What is the current Treasury bill rate in Nigeria?

At the 7 October 2026 auction, stop rates were 15.50% (91-day), 15.80% (182-day) and 15.85% (364-day). The 364-day bill's true yield is about 18.83%.

What is the minimum to buy Treasury bills in Nigeria?

It depends on the channel. Banks, stockbrokers and investment apps set their own minimums, so check with your provider before applying.

What is the CBN Monetary Policy Rate now?

The MPR is 23%, cut from 26.5% at the Monetary Policy Committee meeting on 22 September 2026.

Sources

• Nairametrics, "DMO raises N968.47 billion as 364-day stop rate falls to 15.85%" (7 Oct 2026): https://nairametrics.com/2026/10/07/dmo-raises-n968-47-billion-as-364-day-stop-rate-falls-to-15-85-despite-strong-demand/
• Business Post Nigeria (8 Oct 2026): https://businesspost.ng/economy/364-day-nigerian-treasury-bills-stop-rate-moderates-to-15-85/
• BusinessDay, "Treasury bill demand falls 58% as OMO offers higher yields": https://businessday.ng/news/article/treasury-bill-demand-falls-58-as-omo-offers-higher-yields/
• Ranora Consulting, Midweek Review (true yield 18.83%): https://www.newsletter.ranoraconsulting.com/p/midweek-review-treasury-bill-rates
• ThePointNG, CBN on the rate cut (7 Oct 2026): https://www.thepointng.com/rate-cut-targets-production-investment-as-inflation-battle-continues-cbn/
• National Bureau of Statistics (CPI 15.39%): https://www.nigerianstat.gov.ng/