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Top 7 benefits of investing in treasury bills in Nigeria

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Having business knowledge is a key to wealth acquisition as Nigeria’s treasury bills have become a profitable investment in the country.

There is no doubt that a number of investors in Nigeria have been discouraged based on the unfavorable business environment particularly in the equity market largely driven by devaluation and rising inflation.

The treasury bills which are issued by the Central Bank of Nigeria(CBN) at a discount for a tenor ranging from 91 to 364 days have become an avenue in which investors hide their funds.

Meanwhile, the rate at which an individual could invest in short term securities has been increased to N50,000.

Techeconomy.ng, in this article, however, will be highlighting benefits attached to the investment.

Below are seven benefits of investing in treasury bills in Nigeria:

  1. Your yield(interest) on the TB investment is redeemable, you can decide to automatically reinvest it for a higher income
  2. The yield or Income on the investment is very competitive with returns on other money market instruments of similar maturities
  3. The securities have zero-default risk
  4. The yield on investment is tax-free
  5. The securities can be used as collateral for short-term borrowing from banks
  6. They are bearer securities and negotiable
  7. The treasury bill can be traded on the stock exchange

 

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