The Debt Management Office (DMO) has announced the successful allotment of the Federal Government of Nigeria (FGN) Savings Bonds for the month of July 2025, with a total allotment of N4.27 billion.
According to data published on the DMO’s official website on Thursday, the bonds were offered between July 7 and July 11, 2025.
The 2-year bond, due to mature on July 16, 2027, was allotted at a coupon rate of 15.762%, while the 3-year bond, maturing on July 16, 2028, was issued at a 16.762% coupon rate.
The 2-year bond received N853.822 million in total allotments, with 1,078 successful subscriptions, while the 3-year bond attracted N3.4 billion, spread across 1,591 successful subscriptions. Both bonds will have quarterly coupon payments scheduled for October 16, January 16, April 16, July 16 each year.
The settlement date for both bonds was July 16, 2025, marking the official commencement of the investment period for subscribers.
The July 2025 allotment is higher than the N4.01 billion recorded in June 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 16.762% interest rate represents a decrease from June 2025, when the rate stood at 17.121% per annum for the 3-year bond. Similarly, the 2-year bond rate declined to 15.762%, down from 16.121% in June.
This is likely driven by the Central Bank of Nigeria’s (CBN) decision to retain policy rates at 27.5% in recent months.
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.
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