The Federal Government of Nigeria is offering investors attractive annual returns of up to 16.541% on its latest tranche of Federal Government Savings Bonds, scheduled for issuance in September 2025.
In a public circular released on Monday via its website, the Debt Management Office (DMO) confirmed that the subscription period is now open and will run through Friday, September 5, 2025, with bond settlement expected on Tuesday, September 10, 2025.
This month’s issuance features two bond options for retail investors. The first is a two-year bond, which will mature on September 10, 2027, and carries a fixed annual interest rate of 15.541%. The second option is a three-year bond that matures on September 10, 2028, offering a higher yield of 16.541% per annum.
Both rates represent a notable increase from the previous month’s offerings, where the two-year bond yielded 14.401% and the three-year instrument offered 15.401%.
Interest payments will be made quarterly, with disbursements scheduled for March 10, June 10, September 10, and December 10 each year. According to the DMO, interest earnings will be credited directly into investors’ bank accounts, providing consistent cash flow.
Since its inception in 2017, the FGN Savings Bond programme has aimed to enhance participation in the domestic bond market, encourage financial inclusion, and give ordinary Nigerians access to secure, government-backed investment opportunities.
Each bond unit is priced at ₦1,000, with a minimum investment of ₦5,000 and additional subscriptions available in multiples of ₦1,000. The maximum allowable subscription per individual is capped at ₦50 million.
The DMO further clarified the status of these bonds, noting that they:
- Qualify as government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them tax-exempt for pension fund administrators and certain institutional investors.
- Are eligible investments for trustees, in accordance with the Trustee Investment Act.
- Are listed on the Nigerian Exchange Limited, enabling liquidity and transparency.
- Count as liquid assets for banks, aiding compliance with regulatory liquidity ratio requirements.
Crucially, the bonds are fully backed by the full faith and credit of the Federal Government of Nigeria and are charged against the general assets of the nation, offering investors a high level of security.
