The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced a new offering of Federal Government of Nigeria Savings Bonds for the month of June 2025. This initiative aims to attract retail investors by offering competitive interest rates on two different bond options. The first is a two-year bond maturing on June 11, 2027, with an interest rate of 16.121% per annum. The second option is a three-year bond maturing on June 11, 2028, offering a slightly higher interest rate of 17.121% per annum. This offering provides an opportunity for individual investors to participate in the fixed-income market and earn a steady return on their investment.
The subscription period for these bonds opened on June 2, 2025, and is slated to close on June 6, 2025, with the settlement date set for June 11, 2025. Investors will receive quarterly coupon payments throughout the bond’s lifespan, payable on September 11, December 11, March 11, and June 11. The minimum investment amount is N5,000, with subsequent investments accepted in multiples of N1,000, up to a maximum subscription of N50 million. This flexible investment structure makes the FGN Savings Bonds accessible to a wide range of investors, from those looking to make modest contributions to high-net-worth individuals.
The FGN Savings Bonds are designed specifically for retail investors, offering a secure and relatively low-risk investment opportunity. Backed by the full faith and credit of the Federal Government of Nigeria, these bonds carry a high degree of security, minimizing the risk of default. Furthermore, the bonds are recognized as a qualifying investment for trustees under the Trustee Investment Act and are exempt from taxes for pension funds as stipulated by the Company Income Tax Act and the Personal Income Tax Act. These features enhance the attractiveness of the bonds for various investor categories, particularly those seeking tax-advantaged investment options.
The bonds are listed on the Nigerian Exchange Limited (NGX), providing liquidity and transparency for investors. Listing on the NGX allows investors to buy and sell the bonds on the secondary market, providing an avenue for exiting the investment before maturity if needed. Additionally, the bonds qualify as liquid assets for banks in calculating their liquidity ratios, further reinforcing their value within the financial system. This listing enhances the overall accessibility and marketability of the bonds.
The DMO’s recent bond auction in May 2025 revealed a strong investor preference for longer-tenor debt instruments. The 19.89% FGN May 2033 bond witnessed significant demand, while the 19.30% FGN April 2029 bond saw comparatively lower interest. This trend suggests a growing appetite among investors for longer-term investments, potentially driven by expectations of higher returns over an extended period. The June 2025 FGN Savings Bonds offer, though shorter-term, provides a competitive alternative for investors looking for a balance between yield and liquidity.
The June 2025 FGN Savings Bonds represent an opportunity for retail investors to participate in the Nigerian fixed-income market and earn attractive returns while managing their risk exposure. The government’s continued issuance of these bonds underscores its commitment to fostering financial inclusion and providing accessible investment opportunities for its citizens. Furthermore, the bonds contribute to the government’s overall financing strategy, allowing it to raise capital for development projects and other budgetary needs while offering a beneficial avenue for individual investors to grow their wealth. The ease of access, combined with the security and tax advantages, makes the FGN Savings Bonds a compelling investment option for individuals seeking a stable and reliable investment vehicle.
