How Much Do ₦10 Million in Government Bonds Earn in 2026?
Renan Filho · Founder & Tech Builder
Quick answer: If you drop ₦10 million into Nigerian treasury bills in 2026, you are looking at roughly ₦2.27 million in interest for the first year, based on the CBN benchmark rate of 22.75%. That is the blunt answer, before taxes and inflation eat their share. But the real question is what that money becomes over 20 years.
Key data for Nigeria (2026-08-08)
| Aspect | Detail | Source |
|---|---|---|
| Local index | NGX All-Share Index | Nigerian Exchange (NGX) |
| Currency | Nigerian naira (₦) | ₦ |
| Reference rate | 22.75% (2026) | Central Bank of Nigeria (CBN) |
| Regulator | SEC Nigeria | Oficial |
the 2026 Treasury Bill Reality Check
the Central Bank of Nigeria (CBN) has kept rates high, at 22.75%, to fight inflation and support the naira. That makes treasury bills attractive. A ₦10 million investment at a 20% stop rate yields ₦2 million annually. But do not forget the 10% withholding tax on interest. Your net is ₦1.8 million. In 2026, with inflation around 24%, your real return is negative. You are losing purchasing power. The naira exchange rate policy adds another layer of risk. If the naira weakens, your dollar value drops. Treasury bills are safe for capital, but they are not a wealth-building tool. They are a parking spot.
the Compounding Table: ₦10 Million over 20 Years
Let us run the numbers. At a 20% annual rate, reinvesting all interest, here is what happens. Year 1: ₦12 million. Year 3: ₦17.28 million. Year 5: ₦24.88 million. Year 10: ₦61.92 million. Year 20: ₦383.38 million. That looks impressive on paper. But do not celebrate yet. Inflation at 24% erodes that. In real terms, after 20 years, your ₦383 million is worth about ₦8.5 million in today's money. You actually lost value. That is the harsh truth about fixed income in a high-inflation economy. You need to beat inflation, not just earn interest.
Alternatives: Stocks, Mutual Funds, and Fintech Apps
Nigerian treasury bills are not your only option. The NGX All-Share Index offers growth. Blue-chip stocks like Dangote Cement, MTN Nigeria, and Airtel Africa have paid dividends and grown. But you need to pick well. Mutual funds from Stanbic IBTC and ARM Investment Managers spread risk. They charge fees, but they give you exposure to bonds and equities. Fintech apps like PiggyVest and Cowrywise offer fixed income products. They are easy to use, but rates are lower than direct bills. They also carry platform risk. The SEC Nigeria regulates them, but you are not insured like a bank deposit.
Ranking: 5 Best Financial Products for ₦10 Million in 2026
Here is my honest ranking of where to put your money in Nigeria in 2026. This is based on cost-benefit, liquidity, and real returns. I am not neutral. I am telling you what I would do.
FAQ: Quick Answers on ₦10 Million in Treasury Bills
How much tax do I pay on treasury bill interest? The CBN and FIRS charge 10% withholding tax on interest. On ₦2 million, you pay ₦200,000. Can I withdraw my money before maturity? Yes, you can sell your bills on the secondary market. But you may get less than your principal if rates have risen. Are treasury bills safer than bank deposits? Yes. They are backed by the federal government. Bank deposits are insured only up to ₦500,000 by NDIC. What is the minimum amount to buy bills? You can start with ₦100,000 through most banks. Some platforms allow ₦10,000. How do I buy bills? Log into your GTBank, Zenith, or Access Bank app. Go to 'Investments' and select 'Treasury Bills'. It takes 10 minutes.
Practical example in Nigeria
₦500,000 in Nigerian treasury bills at 20% yields ~₦100,000 in interest per year
Risks and cautions
Volatilidade do mercado, mudanças na política monetária de Central Bank of Nigeria (CBN) e fatores geopolíticos globais são os principais pontos de atenção para investidores em Nigeria.
| Aspecto | Detalhe | Fonte |
|---|---|---|
| CBN Rate 2026 | 22.75% benchmark | Central Bank of Nigeria |
| Treasury Bill Yield | 20% average stop rate | NGX Fixed Income Market |
| Inflation Rate | 24% projected for 2026 | National Bureau of Statistics |
| Withholding Tax | 10% on interest income | Federal Inland Revenue Service |
Frequently asked questions
How much will ₦10 million earn in treasury bills in 2026?
at a 20% rate, you earn ₦2 million gross. After 10% withholding tax, your net is ₦1.8 million.
Is it better to put ₦10 million in treasury bills or stocks?
Treasury bills are safer but lose to inflation. Stocks on the NGX All-Share Index beat inflation over 5+ years but crash sometimes.
Can I lose money with Nigerian treasury bills?
No, if you hold to maturity. But if you sell early, you may lose principal if rates have risen.
What is the minimum amount to invest in treasury bills?
Most banks like GTBank and Zenith allow ₦100,000. Some fintech apps allow as low as ₦10,000.
Are treasury bill returns taxed in Nigeria?
Yes, 10% withholding tax on interest. There is no capital gains tax on bills, unlike shares.
Sources and authority
This guide is part of the MoneyApp financial education ecosystem. For tax questions in Brazil, see Agente Tributário.
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MoneyApp · Financial education in Nigeria · Consult SEC Nigeria for official guidance.