Nigerian Treasury bills have long been viewed as one of the safer ways for individuals to preserve capital while earning a return. But with a reported real return of just 1.19%, investors are increasingly asking whether putting ₦100,000 into Treasury bills is still worthwhile.
Treasury bills are short-term government securities issued by the Central Bank of Nigeria on behalf of the Federal Government. They are generally considered relatively low-risk investments because they are backed by the government. Instead of receiving traditional interest payments, investors buy the bills at a discount and receive the full face value when they mature.
For an investor putting ₦100,000 into Treasury bills, the headline return can appear attractive. However, the more important figure is the real return—the gain left after accounting for inflation. A nominal return may look reasonable, but if prices are rising almost as quickly, the investor’s purchasing power may increase only slightly.
A 1.19% real return means that after adjusting for inflation, the investment produces a relatively modest increase in purchasing power. In practical terms, an investor may preserve most of the value of their money while earning a small additional return.
That does not necessarily make Treasury bills a bad investment. Their biggest advantage remains capital preservation. For someone who prioritises safety and has a short investment horizon, Treasury bills can provide a useful alternative to leaving cash idle in a low-yield account.
They can also play an important role in a diversified portfolio. Rather than putting all available money into stocks, cryptocurrencies or other assets with greater volatility, investors can allocate part of their savings to government securities and use them as a relatively stable component of their financial strategy.
However, investors should look beyond the advertised yield. Taxes, transaction costs, the investment period and changing inflation can affect the actual return. There is also an opportunity cost: money locked into a Treasury bill cannot be used for another investment opportunity until maturity unless the investor accesses a secondary market.
For the ₦100,000 investor, the key question is therefore not simply whether Treasury bills make money. It is whether the return is sufficient for the investor’s goals, timeframe and risk tolerance.
If the priority is protecting cash while earning something above what might otherwise be available from holding money in an ordinary account, Treasury bills can still make sense. But investors seeking substantial long-term wealth growth may need to combine them with higher-growth assets.
Ultimately, the 1.19% real return shows that Treasury bills are less about getting rich quickly and more about preserving purchasing power with relatively limited risk. For many Nigerian investors, that stability can still make them worthwhile—but the decision should depend on what the money is meant to achieve.
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