The Federal Government of Nigeria, through the Debt Management Office (DMO), has launched a new subscription window for Federal Government of Nigeria (FGN) Savings Bonds, aimed at enhancing liquidity for banks, institutional investors, and individuals while offering competitive returns. The offer, announced on September 1, 2025, includes two-year bonds due September 10, 2027, with a 15.541% annual interest rate, and three-year bonds maturing September 10, 2028, at 16.541% per annum, with quarterly interest payments on March 10, June 10, September 10, and December 10.
The bonds, priced at N1,000 per unit, require a minimum investment of N5,000 and cap subscriptions at N50 million per investor. They offer a bullet repayment structure, returning the principal at maturity. The DMO highlighted that these bonds are tax-exempt under the Company Income Tax Act and Personal Income Tax Act, making them appealing for pension funds and other institutional investors. They also qualify as liquid assets for banks’ liquidity ratio calculations and are listed on the Nigerian Exchange Limited (NGX).
Backed by the full faith and credit of the Federal Government and secured against Nigeria’s general assets, the bonds provide a low-risk investment avenue to support national development. The subscription period runs from September 1 to September 5, 2025, with settlement slated for September 10. Additionally, the DMO recently offered N200 billion in savings bonds, including a reopening of the June 2032 bond with a 17.95% coupon rate, signaling robust demand for government securities.
This initiative comes amid a challenging economic landscape, with the NGX reporting a N363 billion loss at the start of September. The bonds are expected to attract significant interest from investors seeking stable returns, particularly as diaspora remittances and fiscal reforms bolster confidence. Analysts view the FGN Savings Bonds as a strategic tool to channel liquidity into productive investments, supporting Nigeria’s economic stability and growth objectives.
