The Debt Management Office (DMO) has opened its latest subscription window for the FGN Savings Bond (FGNSB) for the 2-year and 3-year tenors being offered this December 2025.
Under the new offer, the 2-year bond maturing on December 10, 2027, carries an interest rate of 12.838% per annum, while the 3-year bond due December 10, 2028, yields 13.838% per annum.
This is contained in DMO’s circular issued on Monday.
The subscription window opened on December 1, 2025, and will close on December 5, 2025. Settlement is scheduled for December 10, 2025, with coupon (interest) payments to be made quarterly on March 10, June 10, September 10, and December 10 of each year until maturity.
Lower interest rates in December
This represents a slight decline when compared to the November issuance, where the 2-Year FGN Savings Bond was offered at 13.565% per annum, while the 3-Year FGN Savings Bond due November 12, 2028, carried a return of 14.565% per annum.
At its 303rd Monetary Policy Committee in November, the Central Bank of Nigeria (CBN) voted to maintain all key policy indicators, signalling the apex bank’s commitment to stabilizing prices and sustaining recent gains in the foreign exchange market.
The committee retained the Monetary Policy Rate (MPR) at 27%.
More insights
The FGNSB remains targeted primarily at retail investors, with a minimum subscription amount of N5,000, and sales conducted in units of N1,000. The maximum permissible subscription per investor is N50,000,000.
As with previous issues, these Savings Bonds are backed by the full credit of the Federal Government — making them among the safest investment instruments available to Nigerians.
Interest is typically paid quarterly, and principal is repaid in full at maturity. That ensures investors enjoy predictable, stable returns and capital preservation without the volatility associated with equities or corporate debt.
In line with its features, the FGN Savings Bond offers several benefits, including:
- Qualification as trustee securities under the Trustee Investment Act.
- Tax exemptions for Pension Funds and other eligible investors under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA).
- Listing on the Nigerian Exchange Limited (NGX), which allows investors to trade the bonds and enhances liquidity.
- Qualification as liquid assets for the computation of banks’ liquidity ratios.
What you should know
The FGN Savings Bond program, first introduced in 2017, is part of the Federal Government’s strategic plan to deepen the domestic debt market, promote financial inclusion, and enable small retail investors to participate in government securities.
The relatively high coupon rates are seen as a response to current inflationary trends and an incentive to attract more retail participation.
Moreover, the DMO’s consistent issuance of the FGN Savings Bond demonstrates the administration’s confidence in the domestic capital market and its strategy to finance budgetary needs without over-reliance on external borrowing.
