The Debt Management Office (DMO) has launched the September 2025 Federal Government of Nigeria (FGN) savings bonds, offering investors attractive interest rates of up to 16.541% per annum.
The subscription window opened on Monday, September 1, 2025, and will close on Friday, September 5, 2025.
The settlement is scheduled for September 10, 2025. Coupon (interest) payments will be made quarterly—March 10, June 10, September 10, and December 10—directly to investors.
The DMO made the announcement in a circular published on its website on Monday.
The DMO offered investors two subscription categories of the Federal Government of Nigeria (FGN) Savings Bond.
The first is a two-year bond, which will mature on September 10, 2027, and carries an annual interest rate of 15.541 per cent.
The second is a three-year bond, set to mature on September 10, 2028, with a higher annual interest rate of 16.541 per cent.
This offering gives Nigerians the opportunity to invest in government-backed bonds, contributing to personal and national financial stability.
Increase in interest rates in September 2025
The 2-year bond interest rate rose to 15.541% in September 2025, up from 14.401% in August. Similarly, the 3-year bond recorded an increase to 16.541% in September, compared to 15.401% in the previous month.
It will be recalled that at the Central Bank of Nigeria’s (CBN) Monetary Policy Committee meeting, the apex bank decided to retain policy rates at 27.5%.
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.
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.
- 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 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.
