Definition of treasury Bills
These are federal government debt instruments issued by Central bank of Nigeria. Treasury bill can also be used to control the supply of money in the economy.
These Treasury Bills are sold through auctions. These auctions are conducted by the central bank of Nigeria. Buyers are requested to quote bids following which the average minimum bid is selected. These Treasury Bills can be bought through any official dealer. For example these treasury bills can be bought through commercial banks.
Treasury Bills is sold every two weeks as announced by the central bank of Nigeria. This announcement are normally made through their websites or daily Newspapers You can also ask your bank account officer to notify you ahead of an issuance.
Treasury Bills are usually for 3 months, 6 months or one year. depending on your choice the central bank will hold your money for the duration of your choice. The CBN can decide they want to sell Treasury Bills for all the tenor available or either of them.
Please note that the interest are always paid upfront and are always