In a move aimed at promoting retail investment and encouraging national savings, the Federal Government of Nigeria, through the Debt Management Office, DMO, has opened subscriptions for two new Federal Government of Nigeria Savings Bonds.
The offer, which began on Monday, June 2, 2025, presents an accessible opportunity for everyday Nigerians to invest in secure government-backed instruments with strong returns.
According to a public statement issued by the DMO in Abuja, the two bonds are available at N1,000 per unit.
The first bond is a two-year FGN Savings Bond maturing on June 11, 2027, with an annual interest rate of 16.121%.
The second is a three-year FGN Savings Bond, set to mature on June 11, 2028, and offers a higher interest rate of 17.121% per annum.
The offer closes on Friday, June 6, while the settlement date is fixed for Tuesday, June 11, 2025. Coupon payments—essentially the interest payouts—will be made quarterly, specifically on September 11, December 11, March 11, and June 11 each year.
The bonds are open to individual investors with a minimum subscription of N5,000 and in multiples of N1,000 thereafter, with a ceiling of N50 million per subscriber.
Importantly, these bonds offer bullet repayment, meaning the principal amount is returned in full at the end of the term, while interest is paid quarterly.
This makes them especially appealing to small-scale investors and pension funds seeking stable returns over a fixed term.
The DMO emphasized the security of these investments, noting that FGN Savings Bonds are fully backed by the Federal Government and secured by the general assets of the nation.
This government backing significantly lowers investment risk, positioning the bonds among the safest financial products in the Nigerian market.
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“These instruments qualify as securities in which trustees can invest under the Trustee Investment Act,” the statement read. “They also qualify as government securities under the Company Income Tax Act and the Personal Income Tax Act, offering tax benefits to pension fund administrators and other institutional investors.”
Additionally, these savings bonds are listed on the Nigerian Exchange Limited, enhancing their liquidity and making it easier for holders to sell them before maturity if necessary. For banks, they also count as liquid assets when calculating their liquidity ratios.
FGN Savings Bonds are part of the government’s broader strategy to deepen the domestic debt market, raise funds to finance critical infrastructure and close budgetary gaps, all while fostering a culture of saving among Nigerians.
Unlike traditional FGN Bonds, which often require higher minimum investments, these savings bonds are structured specifically for retail investors. This democratizes access to stable investment tools and encourages financial inclusion.
The DMO urged Nigerians to take advantage of the offer period and consider these instruments as part of their investment portfolios.
Interested individuals can contact licensed stockbrokers or visit the official DMO website for subscription details.
NAN
