Q: Primary and Secondary Market for Treasury Bills

A T-Bill can be purchased either in a primary or secondary market. The primary market is when the investor buys directly from the CBN through a public auction carried out every fortnight while in the secondary market, an investor buys from an existing holder of a T-Bill. Hence, T-bills in the primary market can be bought only every two weeks while in the secondary market it can be bought every other day. The minimum amount that can be bought in the primary market is >N50.0m while in the secondary market an investor can invest as low as N5,000.