Fixed Income Investments in Nigeria

Fixed Income Investments in Nigeria: Complete Guide 2026

Fixed income investments in Nigeria offer a secure way to grow your wealth with predictable returns. In 2026, with Treasury Bills offering up to 21.87% annually and government bonds yielding around 16.88%, these instruments provide attractive opportunities for conservative investors seeking stability and consistent income.

What Are Fixed Income Investments?

Fixed income investments are financial instruments that pay investors a fixed return over a specified period. Unlike stocks or equities where returns fluctuate, fixed income securities provide predictable income streams, making them ideal for:

• Conservative investors seeking capital preservation
• Retirees needing regular income
• Portfolio diversification to balance riskier investments
• Short-term savings goals with guaranteed returns

What They Are:

Treasury Bills are short-term debt instruments issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government. They are considered the safest investment option in Nigeria, backed by the full faith and credit of the government.

Current Rates (2026):

• 1-month T-Bills: 16.18% per annum
• 3-month T-Bills: 16.87% per annum
• 6-month T-Bills: 17.94% per annum
• 9-month T-Bills: 19.56% per annum
• 12-month T-Bills: 21.87% per annum

Key Features:

• Tenure: 91 days, 182 days, or 364 days
• Minimum Investment: ₦50 million (CBN direct) | ₦100,000 (through brokers/banks)
• Returns: Interest paid upfront (issued at discount)
• Tax Status: Tax-free
• Risk Level: Very low (government-backed)

What They Are:

Federal Government of Nigeria (FGN) Savings Bonds are retail debt instruments designed to encourage small investors to participate in the government debt market.

Current Rates (February 2026):

• 2-year tenor: 14.356% per annum (matures Feb 11, 2028)
• 3-year tenor: 15.356% per annum (matures Feb 11, 2029)

Key Features:

• Minimum Investment: ₦5,000
• Maximum Investment: ₦50,000,000
• Interest Payment: Quarterly
• Tax Status: Tax-exempt
• Liquidity: Listed on Nigerian Exchange (NGX) for secondary market trading
• Risk Level: Very low (government-backed)

What They Are:

Long-term debt securities issued by the Federal Government with maturities ranging from 5 to 30 years.

Current Rates (2026):

• 10-Year Government Bond: 16.88% per annum
• Expected Q1 2026: 16.72% per annum

Key Features:

• Tenure: 5 to 30 years
• Interest Payment: Semi-annual (every 6 months)
• Tax Status: Tax-exempt
• Liquidity: Tradable on secondary market
• Risk Level: Low (government-backed)

What They Are:

Bank deposits locked for a specific period at a fixed interest rate.

Current Rates (2026):

• General Range: 15% to 20% per annum
• Top Banks:
• Providus Bank: up to 23.66%
• FSDH Merchant Bank: up to 23.00%
• Titan Trust Bank: up to 21.95%
• Sterling Bank: up to 21.32%
• Nova Bank: up to 20.44%

Key Features:

• Tenure: Flexible (1 month to 5+ years)
• Tax: 10% withholding tax on interest
• Penalty: Early withdrawal penalties apply
• Risk Level: Low (NDIC insured up to ₦500,000)

What They Are:

Investment funds that pool money to invest in short-term debt securities.

Current Yields (2026):

• Range: 22% to 26% per annum

Key Features:

• Liquidity: High (can withdraw anytime)
• Minimum Investment: Varies by fund (typically ₦10,000 – ₦100,000)
• Management: Professionally managed
• Risk Level: Low to moderate

What They Are:

Debt securities issued by corporations to raise capital.

Current Yields (2026):

• Range: 18% to 20% per annum
• Tenure: 180 to 270 days (commercial papers) | 3 to 10 years (bonds)

Key Features:

• Higher Returns: Better rates than government securities
• Risk Level: Moderate (depends on company creditworthiness)
• Tax: Subject to withholding tax

Method 1: Direct from CBN (Primary Market)

1. Minimum Amount: ₦50,001,000

2. Process:

• Attend CBN Primary Market Auctions (bi-weekly, Wednesdays)
• Submit competitive or non-competitive bid
• Wait for auction results and stop rate announcement

3. Payment: Transfer funds to CBN account upon successful bid

Method 2: Through Banks/Brokers (Secondary Market)

1. Minimum Amount: ₦100,000 (varies by institution)

2. Process:

• Open account with commercial bank or stockbroker
• Request T-Bill investment
• Bank/broker pools funds to meet CBN minimum
• Receive returns proportional to your investment

3. Popular Platforms:

• GTBank, Zenith Bank, Access Bank
• Zedcrest Wealth (from ₦100,000)
• Stanbic IBTC, FBNQuest

Step-by-Step Process:

1. Choose a Stockbroker:

• Stanbic IBTC Stockbrokers
• Afrinvest Securities
• CSL Stockbrokers
• Any DMO-authorized agent

2. Open Account:

• Provide valid ID and BVN
• Complete KYC documentation
• Open CSCS account (optional but recommended)

3. Subscribe:

• Fill subscription form during monthly offering period
• Transfer funds to broker’s designated account
• Include your full name in payment narration

4. Receive Allocation:

• Bonds allotted within 1-2 weeks
• Receive certificate and bond details

5. Earn Returns:

• Quarterly interest payments to your bank account
• Principal returned at maturity

Process:

1. Visit your bank (physical or online)

2. Specify amount and tenure

3. Agree to interest rate offered

4. Transfer funds to fixed deposit account

5. Receive certificate of deposit

6. Interest paid at maturity or periodically (depending on terms)

Best Fixed Income Investments in Nigeria 2026

Highest Returns Ranking

Investment Type	Yield Range	Minimum	Risk	Liquidity
Money Market Funds	22% – 26%	₦10,000+	Low-Moderate	High
Fixed Deposits (Top Banks)	20% – 23.66%	₦100,000+	Low	Low
12-Month T-Bills	21.87%	₦100,000+	Very Low	Moderate
Corporate Bonds/Papers	18% – 20%	₦1,000,000+	Moderate	Low-Moderate
10-Year FGN Bonds	16.88%	₦10,000+	Very Low	Moderate
FGN Savings Bonds (3-yr)	15.356%	₦5,000	Very Low	Moderate
FGN Savings Bonds (2-yr)	14.356%	₦5,000	Very Low	Moderate

Fixed Income Investment Calculators

Online Calculators Available

1. Naija Treasury Bills Calculator

• Website: treasurybillscalculator.com.ng
• Features: Calculate face value, interest, earnings, maturity date, effective yield
• Input: Investment amount, tenor, value date

2. FBNQuest Investment Calculator

• Website: fbnquest.com
• Features: Future value projections with monthly deposits
• Input: Initial amount, monthly deposits, interest rate, time period

3. Cowrywise Interest Rate Calculator

• Website: cowrywise.com
• Features: Compound interest calculations for savings
• Input: Principal, interest rate, compounding frequency, duration

4. CardinalStone Compound Interest Calculator

• Website: cardinalstoneassetmanagement.com
• Features: Specialized for fixed income and money market products
• Input: Principal, rate, compounding period

5. GTFund Managers Investment Calculator

• Website: gtfundmanagers.com
• Features: General investment growth projections
• Input: Amount, rate, duration
• Amount: ₦1,000,000
• Tenor: 364 days (1 year)
• Rate: 21.87% per annum
• Interest: ₦218,700
• Total Return: ₦1,218,700
• Tax: ₦0 (tax-free)
• Net Profit: ₦218,700
• Amount: ₦500,000
• Rate: 15.356% per annum
• Quarterly Interest: ₦19,195
• Annual Interest: ₦76,780
• Total Interest (3 years): ₦230,340
• Tax: ₦0 (tax-exempt)
• Total Return: ₦730,340
• Amount: ₦2,000,000
• Bank: Providus Bank
• Rate: 23.66% per annum
• Tenor: 1 year
• Gross Interest: ₦473,200
• Withholding Tax (10%): ₦47,320
• Net Interest: ₦425,880
• Total Return: ₦2,425,880
• Amount: ₦500,000
• Average Yield: 24% per annum
• Monthly Return: ₦10,000
• Annual Return: ₦120,000
• Total Value (1 year): ₦620,000

Best Choice: FGN Savings Bonds

• ✅ Lowest minimum (₦5,000)
• ✅ Government-backed safety
• ✅ Tax-free returns
• ✅ Quarterly income
• ✅ Easy to understand

Best Choice: Treasury Bills (12-month)

• ✅ Highest safety level
• ✅ Excellent returns (21.87%)
• ✅ Tax-free
• ✅ Short commitment period
• ✅ Accessible through banks/brokers

Best Choice: Money Market Funds

• ✅ Highest yields (22-26%)
• ✅ High liquidity
• ✅ Professional management
• ✅ Diversified portfolio
• ✅ Daily compounding

Best Choice: FGN Bonds (10-year)

• ✅ Locked-in high rates (16.88%)
• ✅ Semi-annual income
• ✅ Tax-exempt
• ✅ Tradable on secondary market
• ✅ Government guarantee

Best Choice: Fixed Deposits (Top Banks)

• ✅ Competitive rates (20-23.66%)
• ✅ NDIC insurance protection
• ✅ Flexible tenures
• ✅ Easy access through existing bank
• ⚠️ 10% withholding tax applies
• Current Inflation: ~33% (December 2025)
• Projected 2026: 12.94%
• Implication: Seek returns above 25% after tax to beat current inflation, or 15%+ if inflation moderates as projected
• CBN expected to gradually ease monetary policy in 2026
• Interest rates may decline slightly throughout the year
• Strategy: Lock in current high rates with longer tenures now

Month 1-2: Build Foundation

1. Start with FGN Savings Bonds (₦5,000 minimum)

2. Open account with stockbroker

3. Learn the process and track quarterly returns

Month 3-6: Increase Exposure

1. Invest in 91-day or 182-day T-Bills (₦100,000+)

2. Experience short-term fixed income

3. Reinvest returns for compounding

Month 7-12: Diversify

1. Add Money Market Fund for liquidity

2. Consider 364-day T-Bill for higher returns

3. Explore fixed deposits with top-rated banks

Year 2+: Optimize Portfolio

1. Ladder T-Bill investments (different maturity dates)

2. Add long-term FGN Bonds for stability

3. Maintain 20-30% in liquid money market funds

Risks and How to Mitigate Them

1. Inflation Risk

Risk: Returns may not keep pace with inflation

Mitigation:

• Choose highest-yielding safe options (T-Bills, Money Market Funds)
• Diversify with some equity exposure
• Monitor inflation trends and adjust strategy

Risk: Rates may be lower when investment matures

Mitigation:

• Use bond laddering strategy
• Lock in long-term rates when high
• Keep some funds in flexible instruments

Risk: Cannot access funds when needed

Mitigation:

• Maintain emergency fund separately
• Use money market funds for portion of portfolio
• Avoid locking all funds in long-term instruments

Risk: Company may default on payments

Mitigation:

• Stick to highly-rated corporations
• Diversify across multiple issuers
• Prefer government securities for safety

A: Treasury Bills and FGN Bonds are the safest, backed by the Federal Government with zero default risk.

Q2: Can I withdraw my fixed income investment before maturity?

A:

• T-Bills & Bonds: Can sell on secondary market (may get lower price)
• Fixed Deposits: Yes, but with penalties and reduced interest
• Money Market Funds: Usually yes, without penalty

A: T-Bills are issued at a discount. You pay less than face value upfront, and receive full face value at maturity. The difference is your interest (paid upfront).

Q4: Are fixed income returns guaranteed?

A: Government securities (T-Bills, FGN Bonds) are guaranteed. Bank deposits are NDIC-insured up to ₦500,000. Corporate bonds depend on company creditworthiness.

Q5: What’s better: T-Bills or Fixed Deposits?

A: T-Bills currently offer higher returns (21.87% vs 15-20%), are tax-free, and have zero risk. Fixed deposits offer more flexibility in tenure and easier access through your existing bank.

Building Your Fixed Income Portfolio

Fixed income investments in Nigeria in 2026 offer exceptional opportunities with Treasury Bills yielding over 21% and various options for every investor profile. Here’s your action plan:

Immediate Actions:

1. ✅ Calculate your investment capacity using online calculators

2. ✅ Open a stockbroker account for T-Bills and FGN Bonds access

3. ✅ Start small with FGN Savings Bonds (₦5,000 minimum)

4. ✅ Compare bank fixed deposit rates for additional options

5. ✅ Set up automatic reinvestment for compounding growth

Portfolio Allocation Suggestion:

• 40% – Treasury Bills (12-month for maximum returns)
• 30% – Money Market Funds (liquidity + high yields)
• 20% – FGN Bonds (long-term stability)
• 10% – Fixed Deposits (diversification)
• 🎯 Diversify across multiple instruments
• 📊 Use calculators to project returns
• 💰 Reinvest returns for compound growth
• 📈 Monitor rates and adjust strategy
• 🛡️ Prioritize safety over maximum returns

Useful Resources

Official Sources:

• Central Bank of Nigeria (CBN): cbn.gov.ng
• Debt Management Office (DMO): dmo.gov.ng
• Nigerian Exchange (NGX): ngxgroup.com
• Stanbic IBTC: stanbicibtcbank.com
• FBNQuest: fbnquest.com
• Afrinvest: afrinvest.com
• Cowrywise: cowrywise.com
• Zedcrest Wealth: zedcrestwealth.com
• Treasury Bills: treasurybillscalculator.com.ng
• Investment Growth: gtfundmanagers.com/calculator
• Compound Interest: cardinalstoneassetmanagement.com/calculators