Treasury bills are short-term security issued by Central Bank of Nigeria (CBN) on behalf of the Federal Government of Nigeria.

Government uses it to control the money in circulation. It is used either as a contraction or expansionary measure. When government wants to reduce the amount of money in circulation, it sells treasury bills through CBN to the commercial banks. Commercial banks can then sell it to the members of the public. If government wants to increase the amount of money in circulation, it buys treasury bills through CBN from commercial banks.

Treasury bills are the safest and most liquid of all investments as they are backed up by government. They are regarded as risk-free securities.[url] Investment in treasury bills [/url]http://www.accountinghour.com/blogs/details/investment-in-treasury-bills/243[url][/url]could be lucrative and less risky.

Treasury bills are issued in the denomination of N1,000. They are sold at a discount. They have maturity of 91days, 182day and 365days.