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 and BUA Cement, 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.