The Debt Management Office (DMO) has launched the March 2025 Federal Government of Nigeria (FGN) savings bonds, offering investors attractive interest rates of up to 17.635% per annum.
The subscription window opened on Monday, March 4, 2025, and will close on Friday, March 7, 2025.
The DMO made this announcement via its official handle on X (formerly Twitter), stating, “We are opening this month with the following offers for subscription: 2-Year Bond due March 12, 2027, at 16.635% p.a., and a 3-Year FGN Bond due March 12, 2028, at 17.635% p.a. Offer is open and closes March 7, 2025. To invest, contact your stockbroker. Interest payment begins on June 12, 2025.”
Key Details of the FGN Savings Bond
Tenure and Rates:
- 2-Year Bond: Matures on March 12, 2027, with an annual interest rate of 16.635%.
- 3-Year Bond: Matures on March 12, 2028, with an annual interest rate of 17.635%.
Unit of Sale:
- N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter.
- Maximum subscription limit is N50 million.
Interest Payment:
- Interest is payable quarterly, with the first payment scheduled for June 12, 2025.
Why Investors Should Consider FGN Savings Bonds
FGN savings bonds are designed to encourage retail investors to participate in the bond market while providing a secure investment backed by the Federal Government of Nigeria. Some key benefits include:
- Attractive Returns: With interest rates of up to 17.635%, the bonds offer higher returns compared to traditional fixed deposits and savings accounts.
- Regular Income Stream: Investors receive quarterly interest payments, making it a viable option for those looking to generate passive income.
- Low Entry Barrier: With a minimum subscription of just N5,000, retail investors can easily participate.
- Government-Backed Security: The bonds are backed by the full faith and credit of the Federal Government, ensuring safety and guaranteed returns.
How to Invest
Interested investors can purchase the savings bonds through stockbroking firms accredited by the DMO. These firms act as intermediaries between investors and the Nigerian Stock Exchange (NGX), where the bonds are listed for trading.
To invest, individuals must contact their stockbroker before the March 7, 2025 deadline to complete the subscription process.
Growing Interest in FGN Savings Bonds
Over the years, FGN savings bonds have gained popularity among Nigerians seeking risk-free investment options.
With inflation concerns and fluctuating interest rates in traditional savings instruments, government bonds provide a stable and predictable return on investment.
