Are Treasury Bills Still Worth It as Yields Fall?

[igwe emmanuel]

Treasury Bills have always been one of the most popular investment options for conservative investors in Nigeria because of their safety and predictable returns. However, with yields gradually declining in recent months, many investors are beginning to rethink their strategy.
As returns from fixed-income instruments start to compress, some investors are shifting their attention to the stock market in search of better long-term value and capital appreciation.
While Treasury Bills still offer stability and relatively low risk, the big question now is whether they can still compete with equities and other investment opportunities in the current market environment.
Do you still consider Treasury Bills a good investment option this year, or do you think stocks and other assets now offer better value for investors?

 

[Mr.Simon]

Treasury Bills have always been one of the most popular investment options for conservative investors in Nigeria because of their safety and predictable returns. However, with yields gradually declining in recent months, many investors are beginning to rethink their strategy.
As returns from fixed-income instruments start to compress, some investors are shifting their attention to the stock market in search of better long-term value and capital appreciation.
While Treasury Bills still offer stability and relatively low risk, the big question now is whether they can still compete with equities and other investment opportunities in the current market environment.
Do you still consider Treasury Bills a good investment option this year, or do you think stocks and other assets now offer better value for investors?

Honestly i will prefer equity stocks over treasury bills for now, Atleast buying into a great company can guarantee dividend and capital appreciation

 

[igwe emmanuel]

Honestly i will prefer equity stocks over treasury bills for now, Atleast buying into a great company can guarantee dividend and capital appreciation

True. With strong equities, you can benefit from both dividends and potential capital appreciation, unlike Treasury Bills which only give fixed returns.

 

[Little Princess]

It’s a classic rotation we’re seeing in March 2026. While the 1-year T-Bill true yield is still hovering around 20.4%, we have to look at it against the current 15.1% inflation rate. We are finally back in 'positive real return' territory! However, compared to the 83% year-on-year gain on the NGX, I agree with @Mr.Simon—T-Bills are now strictly for 'capital preservation' rather than 'wealth creation.' For those of us in the InvestingPort community, the question is: how much of your portfolio are you willing to keep 'safe' while the stock market is doing these historic numbers?

 

[Benjamin E Housel]

It’s not really about whether Treasury Bills is a good investment this year or not. The real question is: how is your investment portfolio structured?

What portion of your portfolio is tied to high-risk assets? What portion is allocated to low-risk assets? how much risk or volatility can you comfortably withstand without negatively affecting your finances in the short term and, more importantly, in the long run?

I often emphasize building for survival first; growth comes second. If your financial survival structures are not strong enough, allocating a large share of your portfolio to high-risk assets may not be a wise decision.

As an intelligent investor, you don’t need to predict the next crisis but you must be prepared for it. Treasury Bills may currently offer lower interest rates compared to previous periods, but that shouldn’t be the only consideration. The key question is: as you pursue higher-risk assets, are your survival structures strong enough to withstand several crises, regardless of what form they take?