FGN Savings Bonds vs. Treasury Bills: Which Is Right for You?

Investing in government securities is one of the safest ways to grow your money, but with options like FGN Savings Bonds and Treasury Bills, it’s important to understand their differences. While both are backed by the Federal Government of Nigeria (FGN), they serve different purposes, have different investment structures, and cater to different types of investors.

So, which one should you consider? Let’s break it down.

What Are FGN Savings Bonds?

FGN Savings Bonds are designed for individual investors who want a safe, predictable way to earn income. They are issued by the Debt Management Office (DMO) and provide quarterly interest payments, making them great for people who need steady cash flow.

Key Features of FGN Savings Bonds

✔ Tenure: Typically 2 to 3 years
✔ Interest Payments: Paid quarterly (every three months)
✔ Entry Point: Minimum investment of ₦5,000, with increments of ₦1,000
✔ Fixed Returns: The interest rate is fixed, meaning you know exactly how much you’ll earn
✔ Non-Tradable: Once you invest, you hold it until maturity—you can’t sell it on the secondary market

Example of FGN Savings Bond Investment

Let’s say you invest ₦50,000 in a 3-year FGN Savings Bond with an interest rate of 10% per annum.

You’ll earn ₦5,000 annually, but instead of receiving it all at once, you get ₦1,250 quarterly.
After 3 years, you’ll receive ₦50,000 back plus all the interest earned over time.

This type of bond is perfect for individual investors, retirees, or anyone looking for a steady source of passive income.

What Are Treasury Bills?

Treasury Bills (T-Bills) are short-term securities issued by the Central Bank of Nigeria (CBN) to control money supply and raise funds for the government. Unlike FGN Savings Bonds, Treasury Bills do not pay periodic interest—they are sold at a discount, and investors make their profit when the full value is paid at maturity.

Key Features of Treasury Bills

✔ Tenure: Usually 91 days, 182 days, or 364 days
✔ Sold at Discount: Instead of paying interest, T-Bills are sold below face value, and investors earn the difference when it matures
✔ Higher Entry Point: The minimum investment is ₦50 million at auctions, but retail investors can buy smaller units through banks and brokers
✔ Tradable: Investors can sell Treasury Bills on the secondary market before maturity

Example of Treasury Bill Investment

Suppose you buy a ₦1,000,000 Treasury Bill with a discounted price of ₦900,000 and a tenure of 364 days.

You pay ₦900,000 upfront, and at maturity, the government pays you ₦1,000,000.
Your profit is ₦100,000, which effectively serves as your interest return.

Treasury Bills are great for institutional investors, companies, and individuals who need quick, secure investment options.

FGN Savings Bonds vs. Treasury Bills: Quick Comparison

Feature	FGN Savings Bond	Treasury Bill
Tenure	2–3 years	91–364 days
Entry Point	₦5,000+	₦50 million (auction), lower via banks
Interest Payment	Quarterly	Paid at maturity (discount method)
Tradability	Not tradable	Can be sold before maturity
Best For	Individuals, retirees, passive investors	Corporations, institutional investors, short-term investors

Which One Should You Choose?

If you want steady quarterly income and a lower entry point, go for FGN Savings Bonds.
If you prefer short-term gains and liquidity, Treasury Bills are your best bet.

Both options are low-risk investments backed by the Nigerian government, so they’re ideal for preserving wealth.

Take Action Today!

Investing wisely is key to growing your wealth. Whether you're just starting or looking for ways to diversify your portfolio, government securities like FGN Savings Bonds and Treasury Bills offer safe, guaranteed returns.

👉 Need expert guidance? Reach out on WhatsApp at +2348161102425, and let's help you choose the best investment strategy for your financial goals!