The Debt Management Office (DMO) has launched the June 2025 Federal Government of Nigeria (FGN) savings bonds, offering investors attractive interest rates of up to 17.121% per annum.
The subscription window opened on Monday, June 2, 2025, and will close on Friday, June 6, 2025.
The DMO made the announcement on X (formerly Twitter) on Monday saying: “We welcome you to this month of June with the: 2-Year FGN Savings Bond due June 11, 2027 at 16.121% p.a. and; 3-Year FGN Savings Bond due June 11, 2028 at 17.121% p.a. Offer opens tomorrow and closes June 6, 2025 Kindly contact your stockbroker to invest.”
This month’s bond offering includes two options: a two-year savings bond maturing on June 11, 2027, with an interest rate of 16.121%, and a three-year bond maturing on June 11, 2028, offering 17.121%.
The settlement date for successful subscriptions is set for September 11, December 11, March 11, and June 11 each year.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing investors to subscribe for up to N50 million.
This offering gives Nigerians the opportunity to invest in government-backed bonds, contributing to personal and national financial stability.
Slight decrease in interest rates
The 17.121% interest rate represents a slight decrease from May, which was set at 17.173% for the 3-year bond, and the 16.121% represents a slight decrease from the 16.173% offered in May.
This is likely driven by the Central Bank of Nigeria’s (CBN) decision to retain policy rates at 27.5% in recent months.
The CBN’s strategy to address inflation and stabilize the foreign exchange market has made Nigerian bonds more attractive, particularly to foreign portfolio investors (FPIs) looking for higher yields.
Results from the May FGN bond auction
In May, the Federal Government raised N4.28 billion through its FGN savings bond auction, reflecting strong demand for long-term securities.
- The May 2025 allotment is slightly lower than the N4.34 billion recorded in April 2025.
- The DMO revealed that the 2-year FGN Savings Bond was offered at an interest rate of 16.173% and recorded a total allotment of N840.43 million across 994 successful subscriptions.
Meanwhile, the 3-year FGN Savings Bond, offered at 17.173%, attracted a total allotment of N3.45 billion from 1,537 successful subscriptions.
What you should know
Recently, Barclays advised investors to reduce exposure to Nigeria’s longer-dated dollar bonds and consider switching to shorter-term maturities, which now offer more attractive yields in the mid-section of the curve.
Currently, Nigeria’s January 2049 bond yields approximately 10.8%, while the September 2033 bond offers about 10.4%. Both have seen yield declines of over 100 basis points since early April, driven by improved sentiment in emerging markets amid easing global tensions.
The Nigerian Treasury Bills (NTB) auction held on May 21, 2025, witnessed intense demand from investors, with the 364-day tenor attracting N1.05 trillion in subscriptions, over three times the N350 billion initially offered.
The auction, conducted by the Central Bank of Nigeria (CBN), recorded total subscriptions of N1.17 trillion across the 91-day, 182-day, and 364-day instruments, far surpassing the total offer of N500 billion.
