Treasury Bills and FGN Savings Bonds are two of the most popular options, when it comes to low-risk investments in Nigeria. They’re both backed by the Federal Government, offer steady returns, and are great for anyone looking to grow their money safely.

But what’s the difference between them, and which one is right for you?

Let’s break it down in simple terms.

What Are Treasury Bills?

Treasury Bills (T-Bills) are short-term loans you give to the Nigerian government. In return, you earn interest. These bills are issued by the Central Bank of Nigeria (CBN), and they usually have durations of 91 days, 182 days, or 364 days.

The returns on T-Bills are paid upfront. This means you buy them at a discounted price and get the full value when they mature.

For example, if you invest ₦90,000 in a one-year T-Bill with a 10% yield, you’ll receive ₦100,000 at maturity. That ₦10,000 is your interest, earned in advance.

T-Bills are a solid choice if you want to invest for a short period and still earn steady, predictable returns. They are low-risk and fairly liquid, meaning you can sell them before the end date if you need your money back early (though you might not get the full value depending on market rates).

What Are FGN Savings Bonds?

FGN Savings Bonds are also government-backed, but they’re more medium- to long-term in nature. They’re issued by the Debt Management Office (DMO) and specifically designed to give everyday Nigerians access to secure investment opportunities.

These bonds typically last 2 or 3 years. Instead of receiving your returns at the end like T-Bills, you get paid interest every quarter (every three months). The interest rate is fixed, which means you know exactly how much you’ll earn ahead of time.

Let’s say you invest ₦100,000 in a 2-year bond with an 11% annual interest rate. You’ll receive ₦2,750 every three months, and at the end of the 2 years, you’ll get your original ₦100,000 back.

FGN Savings Bonds are ideal for anyone looking for a stable, regular income—like students saving for future plans, parents planning ahead, or workers building a financial cushion.

Which Should You Choose?

The answer depends on your financial goals and how long you’re willing to invest your money.

If you want a short-term investment that gives you a lump sum at the end, Treasury Bills might be the better option. They’re great for saving toward things like rent, school fees, or a vacation.

If you prefer to earn money regularly over a longer period, then FGN Savings Bonds are more suited to you. The quarterly payouts make it easier to plan around and can act as passive income.

Both Treasury Bills and FGN Savings Bonds are safe ways to grow your money. They don’t require a large starting amount and are perfect for both beginners and seasoned investors.

The best part? You don’t have to choose just one. You can diversify—put some money in T-Bills for short-term needs and some in FGN Bonds for longer-term goals.

Whether you’re saving for something now or building for the future, one thing is clear: the best time to start investing is today.

So, what are you waiting for? Signup on ARMONE app on Google Play store, or App store and start investing today. Got questions? Email us at ARMSECCustomerService@arm.com.ng or call 02013305005 or 02014609000.