The Federal Government of Nigeria, through the Debt Management Office (DMO), has opened its latest savings bond offer to the investing public. This month’s issuance includes two distinct options aimed at providing secure, tax-efficient investment opportunities with attractive returns.
The available offers are:
2-Year FGN Savings Bond due June 11, 2027, with an annual interest rate of 16.121%
3-Year FGN Savings Bond due June 11, 2028, offering a higher annual interest rate of 17.121%
Both bonds pay interest quarterly, ensuring regular income for investors. Coupon payments will be made on September 11, December 11, March 11, and June 11 of each year until maturity.
Subscription Details
Opening Date: June 2, 2025
Closing Date: June 6, 2025
Settlement Date: June 11, 2025
Redemption: Bullet payment at maturity
Bonds are offered at N1,000 per unit, with a minimum subscription of N5,000. Additional subscriptions must be in multiples of N1,000, up to a maximum investment of N50 million.
Key Benefits for Investors, including High, Stable Returns – Guaranteed interest rates of 16.121% and 17.121% annually for 2-year and 3-year tenors respectively.
Quarterly Income – Reliable, scheduled cash flow throughout the life of the bond.
Tax Benefits – Qualify as government securities under the Company Income Tax Act and Personal Income Tax Act, granting tax-exempt status for pension funds.
Recognized by Law – Eligible under the Trustee Investment Act, making them suitable for trust and fiduciary investments.
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Listed on the Nigerian Exchange (NGX) – Bonds are tradeable, enhancing liquidity options for holders.
Classified as Liquid Assets – Suitable for banks and financial institutions for meeting liquidity ratio requirements.
Fully Secured – Backed by the full faith and credit of the Federal Government of Nigeria, with security guaranteed by the nation’s assets.
How to Invest
Investors-both individuals and institutions, can subscribe through designated stockbroking firms appointed as distribution agents by the Debt Management Office. A full list of authorized agents is available on the DMO’s official website: www.dmo.gov.ng.
With rising inflation and a growing need for stable income streams, these FGN Savings Bonds present a secure and profitable option for investors seeking safety, liquidity, and tax efficiency.