FGN Savings Bond: DMO Opens December Subscription Window

The Debt Management Office (DMO) has announced the opening of subscriptions for the Federal Government of Nigeria (FGN) Savings Bond for December 2025, offering investors two tenors — a 2‑year and a 3‑year bond.

According to the circular released on Monday, the 2‑year bond, which matures on December 10, 2027, carries an annual interest rate of 12.838%, while the 3‑year bond due December 10, 2028, offers 13.838% per annum.

The subscription window runs from December 1 to December 5, 2025, with settlement scheduled for December 10. Coupon payments will be made quarterly on March 10, June 10, September 10, and December 10 until maturity.

Compared to the November issuance, the December rates reflect a slight decline. Last month, the 2‑year bond was priced at 13.565% per annum, while the 3‑year bond carried a return of 14.565%.

At its 303rd Monetary Policy Committee meeting in November, the Central Bank of Nigeria (CBN) retained all key policy indicators, including the Monetary Policy Rate (MPR) at 27%, underscoring its commitment to price stability and exchange rate management.

The FGN Savings Bond program is designed primarily for retail investors, with a minimum subscription of ₦5,000 and sales conducted in units of ₦1,000. The maximum subscription per investor is ₦50 million. Backed by the full faith and credit of the Federal Government, the bonds are considered among the safest investment instruments available in Nigeria.

Interest is paid quarterly, while the principal is repaid in full at maturity, ensuring predictable returns and capital preservation. The bonds also qualify as trustee securities under the Trustee Investment Act, enjoy tax exemptions for pension funds and other eligible investors, are listed on the Nigerian Exchange Limited (NGX) for liquidity, and count as liquid assets in banks’ liquidity ratio calculations.

Introduced in 2017, the program remains a key part of the government’s strategy to deepen the domestic debt market, promote financial inclusion, and encourage retail participation in government securities. The relatively high coupon rates are seen as a response to inflationary pressures and a means of attracting more investors.