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Treasury Bills in Nigeria 2020



Treasury Bills in Nigeria 2020

Treasury Bills are financial instruments issued by the government when in need of money for a short period. It has a tenor ranging from 91 to 364 days and is always issued at a discount. The treasury bills in Nigeria are also used as a method of controlling money supply in the economy by CBN.

The CBN usually conducts an auction every fortnight where these treasury bills are sold. Investors are then requested to quote the rates they are willing to pay for different tenors ranging from 91-day to 182-day or 364-day. The CBN chooses the investors that quote at or below the STOP RATE, which is the maximum rate they are willing to sell.

Treasury Bills in Nigeria 2020

Treasury Bills in Nigeria 2020

Where to buy Treasury Bills and the Minimum Amount You can Buy

There are various official dealers/Agents/Banks that one can buy Treasury Bills from. Buying via Banks’ Treasury Bill mobile application is the easiest way these days. The Sterling Bank’s mobile application, i-invest is a typical example.

The Federal government has increased the price of Treasury Bills from N10, 000 to a minimum of N50,000,000, This simply means that retail investors would not be able to participate in the primary market for treasury bills any longer. However, there is a way to buy treasury bills even if you do not have up to N50 million. I-invest mobile application can only take a minimum of N100, 000 though.

When Treasury Bills are usually sold:

The Central Bank usually put out announcements for the issuance on its websites and on the pages of national newspapers in the country. Treasury bills are sold on a bi-weekly (every other Wednesday) basis. Your bank can also notify you ahead of time through your bank account officer.

How to Buy Treasury Bills:

You can purchase Treasury Bills by approaching your bank and requesting a form. Fill the form with the required information and state the amount you want to purchase as well as your bid rate.

Though treasure bills are normally issued on paper bills, now they are being issued in electronic form. Buying from a mobile application is easier since all you have to do is fill a sign-up form once, online.

Treasury Bills Bid Rate in Nigeria:

The bid rate is also known as your STOP RATE and this is the interest rate you want to receive on the principal you are investing in the Treasury Bill. Having an interest rate of 10% means you would be expecting a 10% profit of your initial capital at the end of the day. Bid rates varies for each investor

Modalities for Selecting Treasury Bills Bid Rate:

The CBN chooses the investors that bid at or below the stop rate, which is the maximum rate they are willing to sell. The minimum average rate for bids is called the Marginal rate. If the marginal rate for a bid opened Wednesday 26 August is 12%, any bid that falls below this rate gets accepted and those that are above it get rejected.

What To Do If You don’t have a Bid rate:

Not having a bid rate is not a setback. If you are not sure or don’t even know a rate to choose, you can have your bank choose a bid rate for you. With this however, there is no guarantee that your bank will choose the best rate for you.

If Your Bid is rejected…

Buying Over The Counter (OTC) is also an option for those who still want to purchase treasury bills after their bid rate is rejected.

Durations (tenor) For the Treasury bills (TB’s):

Treasury bills are issued for a time period ranging from 91 days to a year. The Central Bank of Nigeria will hold your cash for the period you choose and you get return on your investment when due. Since the rates on the treasure bill is quoted annually, you only get a full rate if your tenor is up to 364-day

Selling Treasury Bills before Maturity:

Yes, it is possible to sell your Treasury Bills before it matures. Though this can be done only through the Over The Counter (OTC) market. The price at which you sell is dependent on the prevailing interest rate. For instance, buying a treasury bill at N100, 000 Face Value (FV), you can sell for more or less depending on the prevailing interest rate. If it (i.e. your FV) is trading at higher price, you can be sure of selling at a price of N101, 000 or more. On the contrary, If the trading price is low, you will sell your treasury bills at a loss, i.e. the N100, 000 can sell for N99, 000 or less.

Payment of Interest on Treasury Bills:

Interest on Treasury Bill is paid upfront and into your bank account. For instance, say you purchase a Treasure Bill worth N100,000 that has an interest rate of 10%, a debit of N90,000 will be made to your account, thereby an interest of N10,000 is paid up-front.

Treasury Bills True Yield:

The effective Return on Investment (ROI) is known as True Yield. From the example above, the yield for the N100,000 is 10%, this is called the initial yield. However, because your interest is paid up-front, the true yield is then the N10,000 interest received divided by N90,000 that was debited from your account. Solving out the maths, that is N10,000/N90,000 which translates to 11.11%. This new interest rate is higher than the 10% rate per annum. You only get the True Yield if you hold your investment until maturity.

Rolling Over Investment

Yes, it is possible to roll over your investment, though the Central Bank of Nigeria (CBN) does not do this automatically for you. What you need to do is inform your bank of the wish to rollover the principal on your treasury bill upon maturity. You can also consider reinvesting your interest with your principal sum once the interest is paid. This will give you the benefit of compounding interest.

Safety of Treasury Bills Safe:

Treasury bills are very safe form of investment. They are absolutely risk-free and are backed by the Federal Government of Nigeria.

Other Benefits beside the Interest Rates:

  1. The fear of risk is eliminated since this investment carries the guarantee of the Federal Government
  2. It is a great source of steady income.
  3. Treasury Bills are good investments plan for people looking to save.
  4. It is a form of Investment that is absolutely tax-free.
  5. Treasury Bills can be converted to cash quickly due to their high liquidity.
  6. Treasury Bills are highly liquid instruments. Therefore, they can be used as collateral.

Taxation on Treasury Bills:

The interests made from Treasury Bills are not taxable.


This article illustrated how to invest in Nigerian Treasury Bills market. It is a basic guide to investing in treasury bills for beginners and gives a concise explanation of what treasury bills are and how to invest in it. It provided useful tips on how and when interest is earned and paid to an investor in treasury bills in Nigeria. Finally, it outlined the benefits of investing in treasury bills in Nigeria.



Ekemini Ekpo is a professional writer, blogger, and internet marketer. He is passionate about engineering, business, investment, entrepreneurship, finance, and personal development. When he is not managing web projects, he handles academic research writing and data analysis for individuals and organizations.

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10 Hot And Most Sought-After Investment Opportunities in Nigeria



In Nigeria today, with the unavailability of white collar jobs many have resorted to other means to earn a living. These means include investing in a lucrative business. When deciding on a business to invest in, it is easy to get caught in the midst of indecision trying to weigh the odds of each idea. This article outlines 10 Hot And Most Sought-After Investment Opportunities in Nigeria.

Understanding Investments Just The Way It Is

There are multiple avenues for making money in Nigeria today. Today, I will be looking at just 10 of them, and these are what I consider the most lucrative investment opportunities in Nigeria today. My rankings do not follow any scale of preference nor rating. They are simply randomly placed in whatever order they find themselves. When it comes to investment, we are referring to the act of investing. So, what then is investing? Or what does the term, “investing” mean? That is, what does it mean to invest?

To invest means to layout cash or capital with the hope of generating income or profit in the future. It was Warren Buffet who several years ago, gave an implicit definition of the term to mean “the process of laying out money now to receive more money in the future”. This definition is not in anyway far from being realistic.

Using this definition, therefore, people invest or go into investments to make income or more income. This could be once or for a lifetime, depending on the kind of investment gone into. In this paper, therefore, we shall consider the short-term and long-term kinds of investments, from which you can pick the one that best suits your interest.

Say for instance that you have N1000 now. Imagine that you buy oranges with this money and sell these off at retail prices, thereby generating N1500 in the process. You see, you have made some profits. That’s investment!

If say, on the other hand, you intend to go into cyber café business. you begin by renting a space in town and later acquire the needed computer sets and Internet Services. This too is a form of investment, but the long-term type.

It is not enough to limit investment to merely making money or profits. It has more to offer than that. It makes more sense when your investment can create job opportunities for other people, thereby boosting the economy. At such stage, you are better termed an investor. There can be no significant economic boom without credible investments.

Understand however that for you to make any meaningful progress from investment, you need to do a careful study and have a vivid understanding of what you are about to go into. Else, you risk losing money, manpower and time in the process.

Do checkout what we have for you today below in details.

Hot 10 Most Lucrative Investment Opportunities in Nigeria

10 Hot And Most Sought-After Investment Opportunities in Nigeria

10 Hot And Most Sought-After Investment Opportunities in Nigeria

1.      Food/Catering Business:

Food is a major necessity for man, which makes food business one that can always yield profits when properly done. Food business cuts across several areas like restaurants, fast food, catering services, drinks supply etc. the list is endless. To effectively manage your food or catering business, you will need good managerial skills as well as good customer service to help foster customer relations as well as customer retention.

2.      The Housing Industry:

A shelter is one of the basic necessities of every individual. With new sites springing up, the need for housing and housing equipment continue to rise. Real estate agents are everywhere, define where you would like to fit in and define your niche

3.      Fashion Industry:

The fashion industry no doubt has been in the spotlight for some time now. With the advent of made in Nigeria brands and the outstanding designs produced by these brands, the fashion industry is another place to invest if you have a flair for fashion.

4.      Agribusiness:

Agriculture is also a good venture to invest in especially when done on a large scale. Although commercial agriculture can be capital intensive, it yields huge profits at harvest. Crops include rice, cassava, maize etc.

5.      Education:

Most Nigerian parents are on a constant for quality education for their children hence the advent of private school and universities. Investing in this sector promises good returns as long as people get value for the money they pay.

6.      Technological Gadget Business:

With the digital evolution, smartphones can be found in the possession of most Nigerians. Organizations need laptop gadgets for work operations. Game lovers have their PlayStation etc. These make the technological gadgets venture a great one to invest in.

7.      Automobile Business:

With the number of cars and motorcycles we see on the road daily, you need not be told that the automobile business in Nigeria is booming. The demand for vehicles is ever increasing both for individuals as well as corporate bodies. Although this business is capital intensive, it is a good investment venture.

8.      Music Industry:

Nowadays, you don’t need to have a great voice to fit into the music industry, there are so many roles one can fill. You can choose to set up a record label for talented young artists and promote them, just find your niche and set up.

9.      Transportation Business:

Transportation is a necessity for every individual, either for conveying of goods or persons. Therefore, investing in this business promises a good return on investment especially during festive seasons.

10. Digital Marketing:

With the high influx of start-ups as well as the need for old brands to keep up with current business trends, digital marketing has become a part of most businesses. This involves the online promotion of businesses and their products and services.

Whatever your interest may be, there is a business you can invest in. Find your niche, do your survey and take the risk. Happy investing!!

I hope your search has ben successful. Thanks for reading.



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Top Revolutionary Investments Opportunities In Nigeria



If you have the cash and you are looking for some of the best enterprises to invest in Nigeria, then this article is for you. Nigeria is filled with limitless opportunities and commercial enterprises or entities which you can invest in and make lots of profits from. The businesses I shall be discussing with you briefly are time-tested and viable investment avenues which anyone with the mind to invest can reap many dividends from after some time. Let’s consider them closely.

Top Revolutionary Investments Opportunities In Nigeria

Top Revolutionary Investments Opportunities In Nigeria


Nigeria is a country with huge agricultural potentials, but due to the advent of oil a few years ago, this cash-spinning sector has been left to rot. The result, of course, is obvious as a country that was once feeding nations around the world cannot feed itself, let alone, others. There are many sides to agribusiness which you can take after. For example, you can go into poultry farming, which is one of the easiest aspects of agriculture with low startup capital and easy management requirements. The beautiful thing here is that almost all Nigerians consume poultry products in one form or the other.

Cassava farming is another aspect of agriculture in Nigeria that brings in lots of cash. Cassava is eaten by almost all Nigerians, in one form or the other, meaning therefore that if you go into it by way of processing Garri, Foofoo, starch etc., you are definitely going to make profits.

You can also go into rice farming, yam farming, animal husbandry etc. why I mention these aspects of agriculture in Nigeria is because they are the most sought after in the country.

Sales of Furniture and Furnishings

There is hardly a home you will visit in Nigeria that does not have at least one piece of furniture. Housing, after food discussed above, is one of the most basic needs of man. As such, everyone needs at least a piece of furniture to decorate the home and office. As such, you are not going to lose if you decide to invest in this line of business. you must not be a carpenter or a fashion/interior designer. By selling either or both local and exotic pieces of furniture, you are definitely going to make lots of proceeds from this business.

Haulage Business

Nigerians are currently making lots of profits from haulage business in the country. You too can make lots of profit from this business if you do it well. Haulage simply entails movement of goods and services from one place to another. Due to the unavailability of the efficient railway system in the country, many Nigerians have resorted to this route for easy transportation of their goods and services. You too can make money from this industry if you have the technical know-how on how it is run. You can haul agriproducts, petroleum products, cargos, etc. the list is endless.

Importation Of Tokunbo Spare Parts

Because of the large influx of vehicles in the country, going into tokumbo spare part business will not be a miss, but rather a hit. You can easily import these vehicle spare parts from Germany, USA, Denmark, Brazil etc and resell them here in Nigeria.

Oil And Gas Business

Limitless opportunities abound in the Nigeria oil and gas sector, which you can choose from. In this industry, you can decide to either own and operate a fuel filling station, supply diesel, petrol, and kerosene or just invest in one aspect of the business especially in crude oil supplies.

Of course, there is no questioning whether you will make profits from this business because, for a fact, you will. Nigeria has millions of vehicles which run on either petrol or diesel. These will need refueling to function. Many homes now use gas for cooking, and a greater proportion of the population depend on kerosene for either cooking or lighting their homes. As such, there will always be a market for business in the Nigeria Oil and Gas sector.

School Business

School business is big business these days. Since people will always be born, schools will always exist. As generations come and go, the school still remains where it is to cater for the benefits of the new generation. You are not going to lose if you go into school business. So, try it out today.

Housing Business

Every year new houses are built in Nigeria, and the old ones, reconstructed. Aside from houses, other forms of construction like roads, rails, bridges and other structures etc. are erected on a daily basis across the country. So, investing in the Nigerian construction and building materials industry is a good choice to make because of the huge business prospects. You are surely going to make good money from it if you start it today.

Online Advertisement And Marketing Agency

With the rapid development of Nigeria’s online terrain, more and more corporations and individuals are taking their businesses online. This is unconnected to the large influx of Nigerians to the online world. Starting an online advertising and marketing agency is, therefore, a great way to make ends meet as per investment initiative in Nigeria.

This business is, however, best for people who are knowledgeable in the workings of the internet and advertisements in general. You can always learn the trade no doubt, and find a way to break into and carve a niche for yourself in the online advertising market in Nigeria.

Has this article been impactful to you, please share this now. we looking forward to hearing from you.



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Crowdfacture Could Become The Tesla Of Africa




Yes, Tesla (TSLA) is currently one of the top manufacturing companies in the world right now, yet it is so young compared to other manufacturing brands.

Here is why,

Tesla has managed to use modern technology to scale up and become one of the top companies in the world with over $700 Billion in valuation, making it the highest automobile manufacturer in the world and seconded by Toyota.

Some people call Tesla an overhyped company, but let’s appreciate the fact that Tesla’s competitive advantage comes as a result of its dedicated emphasis on research and development (R&D). In fact, many of its rivals have admitted that Tesla’s electronics far surpass their own—a teardown revealed that its batteries and AI chips are roughly six years ahead of other industry giants such as Toyota and Volkswagen.

On this end, Crowdfacture is an African-focused community-driven manufacturing and distribution company with a focus on food production and processing (even though it is poised to go into other sectors).

While Crowdfacture never made any claims about wanting to become the largest manufacturer in Africa, Let’s also appreciate the fact that this is a company that is first to design and build on this kind of business model around manufacturing where it gives anyone the opportunity to become a co-owner of a manufacturing and processing line for life.

Crowdfacture is not playing into car manufacturing like Tesla but got huge potentials and fast growth toward reaching its goals of helping solve the problems of Nigeria by improving local production and creating jobs for the unemployed Nigerians.

Just like Tesla, Crowdfacture is also leveraging on dedicated research and development (R&D) to launch its production lines across several sectors that is considered very vital and crucial to the economic growth of Nigeria.

The company is also promising to back 3rd party manufacturers to foster the growth of other promising manufacturing companies by dedicated founders/manufacturers.

If all things being equal and core goals delivered, Crowdfacture stands a chance to become a fortune 500 company on or before 2030 with a complex production and distribution chain across the shores of Africa.

I personally believe this will be a highly valuable tech company in Nigeria just like what Flutterwave, Paystack, Sumotrust and the rest have done in the fintech space.

It is time to produce and manufacture locally and cut down on the high import rate.

Join Crowdfacture and become a co-owner of a manufacturing line for life. Enjoy 30% dividend on your investment.



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