FG Opens June Window for FGN Savings Bonds with Attractive Rates

The Federal Government of Nigeria, through the Debt Management Office (DMO), has opened a new subscription window for its Federal Government of Nigeria (FGN) Savings Bonds, offering competitive interest rates to retail investors for the month of June 2025.

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

The subscription window opened on June 2, 2025, and will close on June 6, 2025, with settlement scheduled for June 11, 2025. Coupon payments will be made quarterly—on September 11, December 11, March 11, and June 11—throughout the tenor of the bonds.

Each unit of the bond is priced at ₦1,000, with a minimum subscription of ₦5,000 and subsequent investments in multiples of ₦1,000. The maximum subscription is capped at ₦50 million.

The FGN Savings Bond is specifically designed for retail investors and is considered a low-risk investment, backed by the full faith and credit of the Federal Government of Nigeria. It qualifies as an approved security under the Trustee Investment Act and is exempt from taxes for pension funds under the Company Income Tax Act and the Personal Income Tax Act.

Additionally, the bond is listed on the Nigerian Exchange Limited (NGX) and qualifies as a liquid asset for the purpose of liquidity ratio calculation by banks.

Investor sentiment continues to lean toward longer-tenor instruments, as seen in the May 2025 FGN bond auction, where data from the DMO showed strong demand for the 19.89% FGN May 2033 bond, while interest in the 19.30% FGN April 2029 bond was relatively muted.