The Debt Management Office (DMO) has announced the latest offering of the Federal Government of Nigeria’s (FGN) Savings Bonds, available for subscription from May 5 to May 9, 2025. This latest issuance presents enticing interest rates aimed at attracting retail investors seeking safe and steady returns.
According to details published by the DMO, the two-year bond maturing on May 14, 2027, carries an annual interest rate of 16.173%, while the three-year bond, set to mature on May 14, 2028, offers a higher yield of 17.173% per annum. Both options continue the government’s efforts to promote a culture of savings and provide retail investors with secure investment vehicles backed by the sovereign guarantee of Nigeria.
Key terms include a settlement date of May 14, 2025, with coupon payments scheduled quarterly — every February 14, May 14, August 14, and November 14. The bonds can be purchased in denominations starting from N5,000, up to a maximum of N50 million, at a unit price of N1,000 each.
Designed to appeal to a broad range of investors, the FGN Savings Bond enjoys recognition under Nigeria’s Trustee Investment Act, Company Income Tax Act (CITA), and Personal Income Tax Act (PITA), providing tax benefits for eligible institutional investors such as pension funds. Additionally, the bonds are listed on the Nigerian Exchange Limited (NGX), allowing for secondary market trading and enhancing liquidity for bondholders.
Beyond their tax advantages and tradability, these government bonds are classified as liquid assets for Nigerian banks, further boosting their appeal in the financial sector. The DMO emphasized that the bonds are among the safest investment instruments available, as they are secured by the general assets of the Federal Republic of Nigeria.
Amidst rising inflation and volatility in traditional savings products, FGN Savings Bonds have continued to draw interest from Nigerians seeking dependable returns. The DMO is encouraging interested investors to subscribe through accredited stockbroking firms or visit its official website for further instructions.
With its competitive rates and government backing, the May 2025 series is expected to continue the trend of strong demand witnessed in previous bond offers.
