The Debt Management Office (DMO) has announced the successful allotment of N4.34 billion in the April 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds.
The subscription period, which ran from April 7 to 11, 2025, offered investors two options: a 2-year bond maturing on April 16, 2027, and a 3-year bond maturing on April 16, 2028.
The FGN Savings Bond qualifies as a security for trustees under the Trustee Investment Act and as a government security under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA). This classification allows tax-exempt status for pension funds and other eligible investors.
According to data from the DMO, both bond series will settle on April 16, 2025, with quarterly coupon payments scheduled for July 16, October 16, January 16, and April 16 until maturity.
The 2-year bond, offered at a coupon rate of 16.05%, saw a total allotment of N1.135 billion from 862 successful subscriptions. The 3-year bond, with a higher coupon rate of 17.05%, attracted stronger interest, recording a total allotment of N3.203 billion from 1,293 successful subscriptions.
Bonds were sold in units of N1,000, with a minimum subscription of N5,000 and increments of N1,000, up to a maximum of N50 million. Interest payments are made quarterly, with full redemption on the maturity date.
Targeted primarily at retail investors, the FGN Savings Bond program continues to attract participation due to its competitive returns and low-risk profile, offering a stable investment option amid broader market uncertainties.
The relatively high interest rates for the April issuance reflect the government’s strategy to attract domestic capital while encouraging savings among Nigerians.
Launched in 2017, the FGN Savings Bond program aims to deepen the domestic bond market, enhance financial inclusion, and provide retail investors with easy access to government-backed securities. With consistent allotments exceeding billions of naira, the instrument remains a trusted investment choice for individual investors.