The Debt Management Office (DMO) has launched the August 2025 Federal Government of Nigeria (FGN) savings bonds, offering investors attractive interest rates of up to 15.401% per annum.
The subscription window opened on Monday, August 4, 2025, and will close on Friday, August 8, 2025.
The DMO made the announcement in a circular published on its website on Monday.
This month’s bond offering includes two options: a two-year savings bond maturing on August 13, 2027, with an interest rate of 14.401%, and a three-year bond maturing August 13, 2028, offering 15.401%.
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.
The settlement date for successful subscriptions is set November 13, February 13, May 13, and August 13 each year.
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 14.401% interest rate represents a decrease from July 2025, when the rate stood at 16.762% per annum for the 2-year bond.
Similarly, the 2-year bond rate declined to 15.401%, down from 15.762% in July.
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 July 2025 savings bonds auction
In July 2025, the DMO allotted a total allotment of N4.27 billion, reflecting strong demand for long-term securities.
The data reveals that 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.
What you should know
The 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.
