The Debt Management Office (DMO) has announced the successful allotment of the Federal Government of Nigeria (FGN) Savings Bonds for the month of June 2025, with a total allotment of N4.01 billion.
According to data published on the DMO’s official website on Wednesday, the bonds were offered between June 2 and June 6, 2025.
The 2-year bond, due to mature on June 11, 2027, was allotted at a coupon rate of 16.121%, while the 3-year bond, maturing on June 11, 2028, was issued at a 17.121% coupon rate.
The 2-year bond received N2.01 billion in total allotments, with 1,202 successful subscriptions, while the 3-year bond attracted N1.995 billion, spread across 1,321 successful subscriptions. Both bonds will have quarterly coupon payments scheduled for September 11, December 11, March 11, and June 11 of each year.
The settlement date for both bonds was June 11, 2025, marking the official commencement of the investment period for subscribers.
The June 2025 allotment is slightly lower than the N4.28 billion recorded in May 2025 auction.
The bonds were issued at N1,000 per unit, with a minimum subscription requirement of N5,000 and in multiples of N1,000 thereafter, up to a maximum subscription of N50 million.
What you should know
The interest rates offered during the May 2025 auction—16.173% for the 2-year tenor and 17.173% for the 3-year tenor—were higher than the rates offered in the June 2025 auction.
The Federal Government of Nigeria (FGN) Savings Bond programme, introduced in 2017, was designed to deepen the domestic bond market, promote financial inclusion, and offer retail investors access to secure and low-risk government securities.
- The FGN Savings Bond qualifies as an approved investment under the Trustee Investment Act and is also recognised as a government security under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA). This makes it eligible for tax exemption by pension funds and other qualified institutional investors.
- Furthermore, the bonds are listed on the Nigerian Exchange Limited (NGX), providing investors with the option to trade them on the secondary market and enhancing overall liquidity. They also qualify as liquid assets for the purpose of computing banks’ liquidity ratios.
Over the years, FGN Savings Bonds have become increasingly popular among Nigerians looking for safe and predictable investment options. Amid concerns over inflation and volatile interest rates in traditional savings products, these government-backed bonds offer stability and consistent returns.
