Nigeria Treasury Bill and FGN Bond Rates 2026: how yields moved and what investors earned
Treasury bill rates fell almost three percentage points this year, and for the first time in years they now pay more than inflation. FGN bond yields barely moved. Here is the full 2026 picture, and what the CBN's September rate cut means for what comes next.
The short answer
If you bought Nigerian Treasury bills in January, you locked in some of the best rates of the year. The 364-day bill cleared at 18.47% at the first auction of 2026 on 7 January. By 28 October it cleared at 15.80%. Anyone rolling bills over through the year has seen their income fall with it.
FGN bonds told a different story. The 10-year FGN February 2034 bond cleared at 17.50% in January and at 16.99% in October, a fall of only about half a point. The government is still borrowing heavily at the long end, and in October the DMO even paid slightly more to raise money than it did in September.
The good news for savers is inflation. Headline inflation fell to 14.63% in September, so a one-year bill now pays a real return of about 1.2% a year, and a 10-year bond about 2.4%. For most of the last four years, both paid less than inflation.
Treasury bill rates through 2026
These are the 364-day stop rates at CBN auctions this year. The stop rate is the highest rate the CBN accepted, and the rate most investors at that auction received.
| Auction | 364-day stop rate | What happened |
|---|---|---|
| 7 Jan 2026 | 18.47% | First auction of the year, highest 364-day rate of Q1 |
| 21 Jan 2026 | 18.36% | Rates start to ease |
| 8 Jul 2026 | 17.70% | Mid-year, still near 18% |
| 29 Jul 2026 | 17.35% | Demand surges after the July MPC hold |
| 12 Aug 2026 | 17.59% | A brief rise |
| 9 Sep 2026 | 16.62% | Falling inflation pulls rates down |
| 23 Sep 2026 | 15.89% | First auction after the CBN cut to 23% |
| 7 Oct 2026 | 15.85% | |
| 28 Oct 2026 | 15.80% | Latest auction |
Shorter bills moved less. The 91-day bill went from 15.84% in late January to 15.40% in October, and the 182-day from 16.65% to 15.79%. That means the gap between short and long bills has almost disappeared: today a 91-day bill pays nearly as much as a one-year bill, which makes the shorter bill the more flexible choice for most savers. Check the rate at the next auction in our Nigerian T-bill rates today guide.
FGN bond rates through 2026
| Bond | January auction | October auction | Change |
|---|---|---|---|
| FGN Feb 2031 (7-year) | 17.62% | not offered | |
| FGN Feb 2034 (10-year) | 17.50% | 16.99% | −0.51 pts |
| FGN Sep 2036 | not offered | 17.29% | +0.50 pts vs Sep |
| FGN Jun 2038 (15-year) | not offered | 17.19% | +0.34 pts vs Sep |
Two things stand out. First, long bonds now pay about 1.2 to 1.5 points more than one-year bills, a premium investors demand for locking money away for ten years or more. Second, the October auction moved up, not down. The DMO raised about ₦1.2 trillion that month and plans ₦5.75 trillion of bond sales in the fourth quarter, with ₦2 trillion each at the 16 November and 14 December auctions. Heavy supply like that tends to stop long-term yields from falling as fast as bill rates.
For retail investors, the monthly FGN Savings Bond opened in October at 13.07% for two years and 14.07% for three years, lower than the auction market but available from ₦5,000.
What investors actually earned in 2026
T-bill investors: high income, falling with every rollover
A one-year bill bought on 7 January at 18.47% will pay that rate in full when it matures in January 2027. But someone who bought shorter bills and kept rolling them over has watched their rate fall from around 16% to 15.4% on the 91-day. Bills don't gain in price when rates fall, because you hold them to maturity, so the only way to "win" from falling rates was to lock in a long tenor early.
FGN bond investors: coupon income plus a small price gain
The FGN February 2034 bond pays a 19% coupon. With its yield down about half a point since January, its price has risen roughly 2%. Add the coupon earned so far this year and a January buyer is up roughly 17%, before tax-free status is counted (FGN bond interest is tax-exempt for individuals). That is a strong year, but most of it is income, not a rally.
After inflation: positive for the first time in years
With inflation at 14.63%, the 364-day bill's 15.80% leaves a real yield of about +1.2%, and the 10-year bond's 16.99% about +2.4%. In 2024, when inflation was above 30%, both lost money in real terms. The return is thin compared with Ghana or Zambia, where bills now pay about 4% above inflation, but it is moving in the right direction.
Why rates fell: the CBN cut and the inflation turn
The CBN held its Monetary Policy Rate at 26.5% through May and July, then cut it by 3.5 points to 23% at its 21 to 22 September meeting. The cut followed months of falling inflation: 15.91% in June, 15.39% in August and 14.63% in September.
Notice that the 364-day bill, at 15.80%, is now more than 7 points below the 23% policy rate. That usually means the market expects more cuts. If inflation keeps falling, bill rates are more likely to drift lower than higher in 2027.
What could change it: food inflation is still close to 20%, the DMO's heavy Q4 borrowing is already pushing long bond yields up, and a weaker naira would quickly feed back into prices. Any of those could slow or reverse the fall.
What this means for your money
- Want certainty for a year or more? Long tenors now pay more than short ones again. A 10-year FGN bond at about 17% locks today's rate in for a decade, but its price will swing if rates move.
- Want flexibility? The 91-day bill pays nearly as much as the one-year bill, so you lose very little by staying short.
- Small amounts? FGN Savings Bonds (from ₦5,000) and money market funds are the easiest way in. Compare funds in our best performing mutual funds guide.
- Comparing with stocks? The NGX All-Share Index is up more than 60% this year, far ahead of any bond. But bonds pay a known return and stocks do not. Many dividend stocks still yield less than a T-bill. See our NGX Q3 2026 review.
Track every T-bill auction, the yield curve and listed FGN bonds on the Kobo Terminal bonds and T-bills page. For how Nigeria compares with the rest of the continent, see Mansa Markets' review of Africa's best performing bond markets in 2026.
Frequently asked questions
What is the current Treasury bill rate in Nigeria?
At the 28 October 2026 auction, the 91-day bill cleared at 15.40%, the 182-day at 15.79% and the 364-day at 15.80%. Rates change at every fortnightly auction; the latest are on our bonds page.
Did Treasury bill rates go down in 2026?
Yes. The 364-day rate fell from 18.47% in January to 15.80% in October, a drop of 2.67 points, mostly after August as inflation fell and the CBN cut its policy rate to 23%.
Which pays more in 2026, T-bills or FGN bonds?
FGN bonds. The 10-year bond cleared at 16.99% in October against 15.80% for the one-year bill. The extra yield is payment for tying your money up for longer and accepting price swings if you sell early.
Are Nigerian Treasury bills beating inflation?
Yes, narrowly. With inflation at 14.63% in September, the 364-day bill's 15.80% gives a real return of about 1.2%. That is the first sustained positive real return on bills in several years.
Will T-bill rates fall further in 2027?
Nobody can promise it, but the signs point that way: bill rates sit well below the 23% policy rate and inflation is still falling. The risks are food prices, the naira and heavy government borrowing.
Methodology
Treasury bill rates are CBN primary-auction stop rates. FGN bond rates are DMO auction stop rates (yield to maturity) for reopened bonds. Inflation is the NBS headline year-on-year rate. Real yield is the nominal yield minus the latest inflation rate. The FGN 2034 return estimate assumes the bond was bought at the January auction and values it at the October auction yield; it is an approximation, not a quoted price.
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See today's rates