Market News

By Temitope Aina

The Federal Government of Nigeria, through the Debt Management Office, has opened a new window for subscription to its Federal Government of Nigeria Savings Bonds, offering attractive interest rates to retail investors for the month of June.

According to details released by the DMO, the offer includes a two-year savings bond due June 11, 2027, with an annual interest rate of 16.121 per cent, and a three-year savings bond due June 11, 2028, offering a higher return of 17.121 per cent per annum.

The offer opened on June 2, 2025, and will close on June 6, 2025. Settlement is scheduled for June 11, 2025, while coupon payments will be made quarterly on September 11, December 11, March 11, and June 11 throughout the lifespan of the bonds.

Each unit of the bond is priced at N1,000, with a minimum subscription of N5,000 and subsequent multiples of N1,000. The maximum subscription is pegged at N50m.

The FGN Savings Bond is targeted at retail investors and provides a secure investment backed by the full faith and credit of the Federal Government of Nigeria, making it a low-risk financial instrument. It also qualifies as a security in which trustees can invest under the Trustee Investment Act and is exempt from taxes for pension funds under the provisions of the Company Income Tax Act and the Personal Income Tax Act.

The bond, which is listed on the Nigerian Exchange Limited, qualifies as a liquid asset for liquidity ratio calculations by banks.

The PUNCH reported that investors showed a stronger preference for longer-tenor debt instruments at the May 2025 Federal Government of Nigeria bond auction, as data from the Debt Management Office revealed overwhelming demand for the 19.89 per cent FGN May 2033 bond, while interest in the 19.30 per cent FGN April 2029 bond remained subdued.