The Debt Management Office has opened subscription for two Federal Government of Nigeria savings bonds at N1, 000 per unit.
The first offer is a two-year savings bond due to mature on June 11, 2027, at 16.121% per annum; while the second is a three-year savings bond due to mature on June 11, 2028, at an interest rate of 17.121% per annum.
The FGN savings bond offer is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.
In a statement on its official X handle, DMO said the offers will open on Monday, June 2, 2025 and close on Friday, June 6, 2025.
The settlement date is June 11, 2025, while coupon payment dates are made quarterly – September 11, December 11, March 11 and June 11.
According to the DMO, “They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
“Interest is payable quarterly while bullet repayment is made on the maturity date.”
It said the savings bonds, like all other government securities, are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustees Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investors,” DMO said.
The agency further said the bonds are listed on the Nigerian Exchange Limited and qualify as a liquid asset for liquidity ratio calculation for banks.
However, weak investor appetite for short-term bonds appears to have been weakened in recent times as the DMO raised only N295.98 billion from its N300 billion from its May 2025 FGN bond auction.
According to the result published on the DMO website, investors showed preference for longer term bonds as the five year FGN bonds maturing in April 2029 experienced weak demand and were undersubscribed by as much as 83%.
The Federal Government has shown preference for borrowing from the domestic bond market and has so far borrowed a total of N1.94 trillion from bond investors in the first quarter of 2025.