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Treasury Bills
Treasury Bills are short term instruments issued by CBN on behalf of FGN at a discount. These do not yield any interest but are issued at a discount and repaid at par when it gets matured.
Product Information
Description
Features
Benefits
Description
Treasury Bills are short term instruments issued by CBN on behalf of FGN at a discount. These do not yield any interest but are issued at a discount and repaid at par when it gets matured.
Features
- Tenors for T-bills in the primary market are 91days, 182days and 364days. The secondary market ranges from 7days to 363 days
- Individuals, firms, companies, and financial institutions are eligible to invest in treasury bills.
- T-bills are issued at a discount but redeemed at par. Priced in units of N1,000.
- The repayment of the bill is made at par on the maturity of the term.
- Â Treasury bills are highly liquid negotiable instruments, that are available in both primary and secondary markets.
- In line with the DMO guideline, the minimum amount of bid is N50,001,000.00 and in multiples thereof N1,000. In the secondary market, the minimum bid amount of N50,001,00.
Benefits
- Relatively low-risk option.
- Interest received not subject to tax.
- Repayment guaranteed at maturity.
- Used as collateral securities.
- Interest with the principal can be re-invested immediately.
