Paragraph 1: Introduction to the Federal Government of Nigeria Savings Bond
The Federal Government of Nigeria, through the Debt Management Office (DMO), has introduced a new investment opportunity for retail investors with the launch of the Federal Government of Nigeria Savings Bond for May 2025. This initiative aims to broaden access to government securities and provide a secure and attractive investment option for individuals. The offer period for this bond opened on May 5, 2025, and closed on May 9, 2025, offering two distinct investment tenors: a 2-year savings bond maturing on May 14, 2027, and a 3-year savings bond maturing on May 14, 2028.
Paragraph 2: Interest Rates and Key Features of the Savings Bond
The 2-year savings bond carries an interest rate of 16.173% per annum, while the 3-year bond offers a slightly higher rate of 17.173% per annum. The interest payments are structured to be distributed quarterly on specific dates: August 14, November 14, February 14, and May 14. This regular income stream makes the savings bond an attractive option for investors seeking predictable cash flow. The bond is considered a liquid asset for banks, backed by the full faith and credit of the Federal Government of Nigeria, further enhancing its security and appeal.
Paragraph 3: Accessibility and Investment Limits of the Savings Bond
One of the key advantages of the Federal Government of Nigeria Savings Bond is its accessibility to a wide range of investors. The minimum subscription amount is set at N5,000, with subsequent investments accepted in multiples of N1,000. This low entry point allows even small investors to participate. However, there is a maximum subscription limit of N50 million. The settlement date for the bond is May 14, 2025, marking the official commencement of the investment period.
Paragraph 4: Tax Benefits and Listing of the Savings Bond
The Federal Government of Nigeria Savings Bond enjoys favorable tax treatment, further enhancing its attractiveness. It is recognized as a government security under the Company Income Tax Act and the Personal Income Tax Act, which grants tax exemptions for certain investor categories, including pension funds and other approved investors. Additionally, the bond is listed on the Nigerian Exchange Limited (NGX), providing investors with liquidity and the potential for secondary market trading.
Paragraph 5: Debt Management Office’s Bond Auction Activities
Beyond the savings bond offering, the Debt Management Office actively manages the Federal Government’s debt portfolio through bond auctions. In a recent auction held on March 24, 2025, the DMO successfully allotted a total of N271.2 billion in Federal Government bonds. These auctions serve as a mechanism for the government to raise capital for various development projects and manage its overall debt profile.
Paragraph 6: Importance of Copyright Protection and Contact Information
The information regarding the Federal Government of Nigeria Savings Bond and the DMO’s activities is subject to copyright protection. This material, along with other digital content published on the PUNCH website, cannot be reproduced, published, broadcast, rewritten, or redistributed in whole or in part without prior express written permission from PUNCH. For inquiries or permissions requests, interested parties can contact PUNCH at [email protected] This copyright notice underscores the importance of respecting intellectual property rights and seeking proper authorization before using or disseminating copyrighted materials.
