The Debt Management Office (DMO) has opened subscriptions for two FGN Savings Bonds, offering 16.121% for 2-year and 17.121% for 3-year tenors, with a minimum subscription of N5,000 for individuals and small investors

The Debt Management Office (DMO), acting on behalf of the Federal Government of Nigeria, has announced the opening of subscriptions for two FGN Savings Bonds, offered at N1,000 per unit.

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This initiative aims to provide safe and accessible investment opportunities primarily for individuals and small-scale investors.

According to a statement released by the DMO on Monday, June 2, 2025, the first offer is a two-year FGN Savings Bond due on June 11, 2027, carrying an attractive interest rate of 16.121 per cent per annum.

The second offer is a three-year FGN Savings Bond maturing on June 11, 2028, with an even higher interest rate of 17.121 per cent per annum.

The subscription window for these bonds opened today, June 2, 2025, and will close on June 6, 2025.

The settlement date is set for June 11, 2025, with coupon (interest) payments scheduled quarterly on September 11, December 11, March 11, and June 11.

The bonds are offered at N1,000 per unit, with a minimum subscription amount of N5,000 and subsequent subscriptions in multiples of N1,000, up to a maximum of N50 million.

They are offered at N1,000 per unit, with a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

While interest is payable quarterly, the principal sum will be repaid in full upon maturity.

The DMO assured potential investors that FGN Savings Bonds are “backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.”

They are considered among the safest investments in Nigeria due to their virtually non-existent default risk.

Furthermore, these bonds qualify as securities where trustees can invest under the Trustee Investment Act.

They are also recognised as government securities under the Company Income Tax Act and Personal Income Tax Act for tax exemption purposes for pension funds, among other investors.

The bonds are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculations for banks.

FGN Savings Bonds are specifically designed to cater to retail investors, offering lower entry barriers compared to general FGN Bonds, which often require higher minimum subscription amounts.

The funds raised from these bonds are crucial for the government to finance various projects and address budget deficits.