What T-bills are
Understand why t-bill safety has two components: (1) sovereign backing — the federal government's obligation, considered very low risk, (2) short duration (91-364 days) — limits exposure to interest rate changes.
In this lesson
What T-bills are is part of Treasury Bills Lab. This preview shows how investment-universe connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
Imagine this situation: You lend the Nigerian government 500000 in local currency by buying a 91-day T-bill at 18% annual rate.
What you need to know
T-bill safety has two components: (1) sovereign backing — the federal government's obligation, considered very low risk, (2) short duration (91-364 days) — limits exposure to interest rate changes. Both make T-bills the closest thing to risk-free investment in Nigerian naira.
Real-life example
Real-life money moment: You lend the Nigerian government 500000 in local currency by buying a 91-day T-bill at 18% annual rate. What do you receive at the end of 91 days? The key lesson is: T-bill interest: 500,000×18%×(91/365)=22,397≈22,500.
Progress Penguin connection
Open the investment simulator and buy a simulated 91-day T-bill at a discount. Watch the balance at maturity — the difference between the discounted purchase price and the face value received is the return. No coupon payments arrive during the term; the profit is entirely at maturity.
Activity preview
Try the money challenge
Run the investment model and test: t-bill safety has two components: (1) sovereign backing — the federal government's. Adjust one variable — time, rate, or amount — and note which has the biggest effect on the final balance.
Try one real money action
Open Tasks and submit proof for one task, or open Requests and make a deposit request. Parent approval can happen later.
Quiz preview
Treasury bills are:
You lend the Nigerian government 500000 in local currency by buying a 91-day T-bill at 18% annual rate. What do you receive at the end of 91 days?