The Debt Management Office (DMO) has announced the opening of the October 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, offering investors attractive interest rates of 14.062% and 15.062% per annum for the 2-year and 3-year tenors, respectively.
According to a DMO circular on Monday, the offer for subscription opened on Monday, October 6, 2025, and will close on Friday, October 10, 2025, while the settlement date is scheduled for October 15, 2025.
Coupon payments will be made quarterly — on January 15, April 15, July 15, and October 15 each year — throughout the life of the bond, the circular added.
The DMO stated that the 2-year FGN Savings Bond will mature on October 15, 2027, while the 3-year bond will mature on October 15, 2028.
The DMO emphasized that interest on the bonds is payable quarterly, while the principal will be repaid in full at maturity (bullet repayment).
Lower rates in October
The 2-year bond interest rate decreased to 14.062% in October 2025, from 15.541 per cent in September. Similarly, the 3-year bond interest rate fell to 15.062% per annum in October from 16.541 per cent in September.
It will be recalled that at the Central Bank of Nigeria’s (CBN) Monetary Policy Committee meeting, the apex bank decided to reduce policy rates to 27% in September.
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.
More insights
According to a statement published on the DMO’s official website, the bonds are being issued on behalf of the Federal Government of Nigeria in accordance with the Debt Management Office (Establishment) Act, 2003 and the Local Loans (Registered Stock and Securities) Act, CAP L17, Laws of the Federation of Nigeria 2004.
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.
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.
