The Debt Management Office (DMO) of Nigeria has announced the opening of a new subscription for the Federal Government of Nigeria (FGN) savings bonds.
The offer, which was announced on June 1, 2025, provides investors with opportunities to invest in 2-year and 3-year bonds, with opening and closing dates set for June 2 and June 6, 2025, respectively.
While the 2-year FGN Savings Bond, due June 11, 2027, offers an interest rate of 16.121 per cent per annum, the 3-year FGN Savings Bond, due June 11, 2028, provides a slightly higher rate of 17.121 per cent per annum.
Both bonds will see coupon payments made quarterly on September 11, December 11, March 11, and June 11, with settlement dates accordingly aligned. The bonds are structured as bullet repayments, meaning the principal will be repaid in full on the maturity dates.
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According to the DMO, the minimum subscription for the bonds is set at N1,000 per unit, subject to a minimum investment of N5,000 and in multiples of N1,000 thereafter, with a maximum subscription limit of N50,000,000 per investor. Interest payments will be made quarterly, offering a steady income stream for investors, and the bonds will be redeemed in full on their respective maturity dates.
The bonds qualify as a security in which trustees can invest under the Trustee Investment Act, and it is recognized as a government security within the meaning of the Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for tax exemption purposes for Pension Funds.
Additionally, the bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as a liquid asset for banks’ liquidity ratio calculations.
Also, the debt instruments are backed by the full faith and credit of the Federal Government of Nigeria, charged upon its general assets, ensuring a high level of security for investors.
Legally, the DMO based on the provisions of the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP L17, LFN 2004, is authorized to receive applications for the bonds.
The Office advised interested investors to contact stockbroking firms appointed as distribution agents by the DMO, with a full list available on the official DMO website.
