The Debt Management Office (DMO) has officially opened subscriptions for two new Federal Government of Nigeria (FGN) savings bonds and is offering interest rates as high as 17.046% per annum.
The move is aimed at providing Nigerian retail investors with a secure and accessible investment opportunity.
The offer, which opened on April 7, 2025, includes two distinct bonds: a two-year savings bond that will mature on April 16, 2027 with an interest rate of 16.046% per annum and a three-year savings bond with a higher interest rate of 17.046%, maturing on April 16, 2028.
Investors can purchase the bonds at N1,000 per unit, with a minimum subscription of N5,000. Additional units can be bought in multiples of N1,000 with a maximum subscription limit of N50 million.
The bonds come with guaranteed quarterly interest payments, with the first coupon payment scheduled for July 16, 2025.
The DMO explained that the bonds are backed by the full faith and credit of the Nigerian government, offering a low-risk investment opportunity for individuals.
The bonds are also eligible for tax exemptions, making them an attractive option for a wide range of investors, including pension funds and trustees under the Trustees Investment Act.
In addition to providing a secure investment avenue, the DMO noted that these bonds qualify as government securities within the scope of the Company Income Tax Act and Personal Income Tax Act, offering tax advantages to investors.
The bonds are listed on the Nigerian Exchange Limited (NGX) and also qualify as liquid assets for banks’ liquidity ratio calculations.
The DMO’s announcement follows the Nigerian government’s recent borrowing of N1.94 trillion from bond investors in the first quarter of 2025.
However, the FGN savings bond programme is separate from these borrowings and targets retail investors specifically.
This new initiative is designed to attract more local participation in the Nigerian bond market, particularly retail investors who may have been previously excluded from high-value government securities.
The offer, which closes on April 11, 2025, presents an opportunity for investors seeking guaranteed returns in a stable, government-backed product.
With the settlement date set for April 16, 2025, the DMO is urging potential investors to take advantage of the offer before it closes.
