The Debt Management Office (DMO) has reported a total allotment of N4.28 billion from the Federal Government of Nigeria (FGN) Savings Bonds auction for May 2025. The FGN Savings Bond programme, introduced in 2017, aims to deepen the domestic bond market, promote financial inclusion, and provide retail investors with secure, low-risk government securities.
The May 2025 allotment is slightly lower than the N4.34 billion raised in the previous month, April 2025. In April, the DMO had allotted N397.898 billion across two re-opening issues—the 19.30% FGN APR 2029 (5-Year Bond) and the 19.89% FGN MAY 2033 (9-Year Bond).
According to the data published on the DMO’s official website on Friday, the bonds for the May auction were offered between May 5 and May 9, 2025. Investors subscribed to two tenors: a 2-year bond maturing on May 14, 2027, and a 3-year bond maturing on May 14, 2028. Both bonds are scheduled to settle on May 14, 2025, with quarterly interest payments on August 14, November 14, February 14, and May 14 throughout the life of the bonds.
The 2-year FGN Savings Bond was issued at an interest rate of 16.173%, with a total allotment of N840.43 million from 994 successful subscriptions. The 3-year FGN Savings Bond, offered at an interest rate of 17.173%, attracted N3.45 billion from 1,537 successful subscriptions.
Both bonds were issued at N1,000 per unit, with a minimum subscription of N5,000, and in multiples of N1,000 thereafter, up to a maximum of N50 million.
The FGN Savings Bond qualifies as an approved investment under the Trustee Investment Act and is also recognized as a government security under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making it eligible for tax exemption for pension funds and other qualified institutional investors.
In addition, the bonds are listed on the Nigerian Exchange Limited (NGX), allowing investors to trade them on the secondary market, thus enhancing liquidity. The bonds also qualify as liquid assets for the purpose of banks’ liquidity ratio calculations.
Over time, FGN Savings Bonds have gained popularity among Nigerians seeking safe and predictable investment options. With concerns about inflation and fluctuating interest rates affecting traditional savings products, these government-backed bonds offer stability and consistent returns.
