Nigerian Investors Shift to 20% T-Bills Amid Inflation

Between late 2024 and mid-2026, Nigerian investors began moving their funds from stocks to Treasury bills as the Central Bank Governor Olayemi Cardoso raised interest rates to 26.75% to combat inflation. This change made traditional wealth management strategies less viable.

Investors realized that the high stock prices on the Nigerian Exchange, which had surpassed the 100,000-point mark, no longer provided dividends that matched the risk-free returns offered by government securities. The Debt Management Office's introduction of 364-day Treasury bills with interest rates above 20% prompted many to sell their stocks, including shares in companies like Dangote Cement (NGX: DANGCEM) and BUA Cement (NGX: BUACEMENT), to secure profits.

As demand for these Treasury bills increased, interest rates began to decline toward the 16% range, leading investors to redirect their cash into US dollar assets to hedge against inflation and currency depreciation. This strategy shift reflects a broader trend of wealth preservation in a volatile economic environment.