The Debt Management Office (DMO) on Monday opened subscription window for FGN Savings Bond for the 2-year and 3-year tenors for December 2025.
The Office, in a circular on the debt instrument offer issued on Monday, indicated that the 2-year bond maturing in December 10, 2027 would be offered at interest rate of12.83% per annum while the 3-year bond due December 10, 2028, yields 12.838% per annum.
According to the circular, the subscription window opened on December 1, 2025, and will close on December 5, 2025 while ettlement 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.
The latest FGN Savings Bond offer rates represented a decline when compared to the November offer, in which 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.
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Mainly, the FGN Savings bond is targeted at retail investors, with a minimum subscription amount of N5,000, and sales conducted in units of N1,000 and the maximum permissible subscription per investor is N50,000,000.
On the debt instruments security, the DMO has consistently assured investors that FGN bonds remain the safest form of investment in the domestic debt market.
Specifically, the Office declared that the bonds enjoyed Sovereign Guarantee as the principal and agreed interest payments for FGN bonds are guaranteed by the Federal Government, which implies that the government has an obligation to pay the bondholder as and when due as well as Zero Default Risk as the bonds are classified as a risk-free debt instrument, meaning there is virtually no default risk.
In addition, the bonds are not only backed by the government’s “full faith and credit” but are also “charged upon the general assets of Nigeria”.
As per the bonds legal protections, the DMO maintained that they qualify as securities in which trustees can invest under the Trustee Investment Act; they are classified as government securities for tax exemption purposes for pension funds and other investors under the relevant Company Income Tax Act (CITA) and Personal Income Tax Act (PITA); and that they also count as liquid assets for banks when calculating their liquidity ratios.
The FGN Savings Bond programme was first introduced in 2017 as part of the Federal Government’s plans to deepen the domestic debt market, promote financial inclusion, and enable small retail investors to participate in government securities.
