The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), has announced the opening of subscription for the April 2025 issuance of the FGN Savings Bond, offering highly attractive interest rates of up to 17.046% per annum for retail investors.
According to the DMO’s official notice, the bond offering is structured as follows:
- 2-Year FGN Savings Bond due April 16, 2027: 16.046% per annum
- 3-Year FGN Savings Bond due April 16, 2028: 17.046% per annum
The subscription period for the bond opens on Monday, April 7, 2025, and will close on Friday, April 11, 2025. The settlement date is scheduled for April 16, 2025, which will also be the first coupon payment date.
Subsequent coupon payments will be made quarterly on July 16, October 16, January 16, and April 16 of each year, DMO stated.
Offer Details
- Issuer: Federal Government of Nigeria
- Units of Sale: N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, up to a maximum of N50,000,000
- Interest Payment: Quarterly
- Redemption: Bullet repayment on the maturity date
The DMO emphasized that the FGN Savings Bond qualifies as a security in which trustees can invest under the Trustee Investment Act, and also qualifies as a government security under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), enabling tax exemption status for pension funds and other eligible investors.
In addition, the bonds are listed on the Nigerian Exchange Limited (NGX), thereby offering investors flexibility in liquidity through the secondary market. It also qualifies as a liquid asset for the purpose of computing liquidity ratios for banks.
Importantly, the DMO reaffirmed that the FGN Savings Bond is fully backed by the full faith and credit of the Federal Government of Nigeria and is charged upon the general assets of the nation.
This offering presents an attractive opportunity for retail investors looking for secure, tax-efficient investment options with guaranteed returns. With inflation remaining a concern, the high interest rates on this issuance are expected to draw significant participation from both individual investors and institutional participants seeking risk-free fixed-income instruments.
Interested investors are advised to contact stockbroking firms accredited by the Nigerian Exchange or visit the DMO website for further details on how to subscribe.
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.
