UBA ads

Before now the retail investors in Nigeria who wanted to invest in risk free short-term dated interested yielding securities could only invest in treasury bills. However, earlier this year the Federal Government introduced the FGN Savings Bond as an alternative security to fixed income loving retail investors.

But unlike treasury bills, the FGN Savings bonds is longer in tenor and offers different investing propositions. In this article, we will attempt to differentiate between the two forms of investing, helping you decide what is good for you based on your investment appetite.

[Calculate Treasury bills]

Before we get to the differences, they do have common benefits and characteristics, which are listed below:

  • No fees or charges for subscriptions or bids
  • Both are listed on The Nigerian Stock Exchange and can be sold before maturity by investors through the secondary market
  • They are backed by the full faith and credit of the Federal Government of Nigeria
  • Interest income is exempted from tax
  • They can be used as collateral for loans

[Read Also: 9 TIPS to KNOW when NOT to INVEST]

The major differences that stick out between the both of them are highlighted below

FeatureFGN Savings BondTreasury Bills
Period IssuedMonthlyEvery 2 weeks
Duration offer is open5 days 1 day
Tenor2 or 3 years3, 6 or 12 months
Bid rangeMinimum subscription amount is N5,000 with additions in multiples of N1,000.00, subject to a

maximum of N50 million
Above N50 million
Time interest is paid Every 3 monthsImmediately
Settlement dateUpon ExpirationUpon Expiration
Average interest rate (last 3 months)2 years- 13.0% per annum

3 years- 14.0% per annum
3 months- 14.0% per annum

6 months- 18.8% per annum

12 months- 18.9% per annum


For those looking to invest in treasury bills but do not have the N50 million minim sum required, there are alternative ways of going around this limitation. We explained it in this article. How to invest in treasury bills if you don’t have N50 million

Standard chartered


  1. How come we never heard about the Diaspora bond and how to participate in it before it closed…Kindly keep us informed of the next round of the Diaspora bond


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.