The Debt Management Office (DMO) has announced the opening of the April 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bond, offering returns of up to 17.046 percent per annum.
Aimed at retail investors, the offer presents a secure, tax-efficient investment opportunity amid persistent inflation and declining confidence in traditional savings products.
According to the DMO, the offer includes a two-year bond at 16.046 percent interest and a three-year bond at 17.046 percent. Both issues are scheduled to mature on April 16, 2027, and April 16, 2028, respectively. Subscriptions opened on Monday, April 7, 2025, and will close on Friday, April 11, 2025, with settlement and the first coupon payment set for April 16, 2025.
Quarterly interest payments will follow on July 16, October 16, January 16, and April 16 annually. The bonds are priced at N1,000 per unit, with a minimum subscription of N5,000 and a maximum of N50 million, sold in multiples of N1,000.
The DMO emphasized that the FGN Savings Bond is fully backed by the credit of the Federal Government and qualifies under key tax legislations. It is recognized under the Trustee Investment Act and as a government security under the Company Income Tax Act and Personal Income Tax Act, allowing pension funds and eligible investors to benefit from tax exemptions.
The bonds are listed on the Nigerian Exchange Limited (NGX), offering investors the added benefit of liquidity through the secondary market. They also count as liquid assets for banks in computing liquidity ratios, increasing their appeal to institutional investors.
The DMO noted growing interest in the savings bond programme, as retail investors seek safer alternatives amid economic uncertainties. With guaranteed returns and government backing, the bonds provide a predictable and stable investment option, particularly for small investors looking to preserve value in a high-inflation environment.
Interested individuals can subscribe through accredited stockbroking firms or visit the DMO website for guidance.
