Nigeria’s Treasury Bills: A Safe Investment for 2025 – Insights from Egie Akpata
Nigeria’s treasury bills are set to be a standout investment choice in 2025, offering returns exceeding 30% within a year and providing a low-risk avenue for investors.
This insight was shared by Egie Akpata, Chairman of Skymark Partners, during the Nairametrics Q4 Economic Outlook event. Themed “Nigeria Economic Outlook 2025 Focus: Exchange Rate, Interest Rate, Economic Growth, Geopolitics,” the event shed light on the nation’s financial opportunities across multiple asset classes.
High Returns on Treasury Bills
Egie Akpata emphasized the remarkable performance of treasury bills, calling them the ideal choice for risk-averse investors.
“We have very high risk-free rates right now. The rates on one-year treasury bills are over 30%. Some people might be best served just investing in treasury bills only and not really bothering with anything else,” Akpata said.
Highlighting their safety, he added:
“Given where things are now, are we likely to lose 30% in the next 12 months? Probably not.”
Exploring Equity Market Opportunities
For investors seeking higher returns, Akpata spotlighted the banking sector, which offers attractive dividend yields.
“There’s still a lot of value in the bank stocks just by the size of their dividends and dividend yields. That is probably something worth looking at,” he noted.
However, he cautioned investors to approach the equity market strategically, emphasizing the importance of timing in maximizing returns.
Diversifying with Dollar Assets
Akpata also encouraged portfolio diversification with dollar-denominated assets such as euro bonds, U.S. indices, and ETFs.
“It’s always good to get dollar exposure, either via euro bond funds or, for those who are really sophisticated, investments in the US indices like the S&P index or ETFs,” he recommended.
Key Insights into Nigeria’s Stock Market
At the same event, Akpata analyzed the resilience of the Nigerian stock market despite ongoing economic challenges.
- Banking Sector: High interest rates and foreign exchange gains have fueled strong performance.
- Petroleum Companies: Benefited from price deregulation and favorable exchange rates.
- Challenges for Others: Some listed firms, like MTN and Nestle, face difficulties due to naira depreciation and foreign exchange losses, resulting in negative shareholder funds.
What This Means for Investors
As 2025 approaches, Nigeria’s treasury bills offer a secure and lucrative opportunity for conservative investors, while those seeking higher returns can explore equity markets or diversify into dollar assets. Strategic investment planning will be critical to navigating the evolving financial landscape effectively.