FGN Savings Bond: DMO Opens October Offer at 14.06%, 15.06%

The Debt Management Office (DMO) has announced the commencement of the October 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, offering interest rates of 14.062% and 15.062% per annum for the 2-year and 3-year tenors, respectively.

According to the official circular, the offer opened on Monday, October 6, 2025, and will close on Friday, October 10, 2025. Settlement is scheduled for October 15, 2025. Coupon payments will be made quarterly—on January 15, April 15, July 15, and October 15—throughout the life of the bond.

The 2-year bond will mature on October 15, 2027, while the 3-year bond will mature on October 15, 2028. Interest is payable quarterly, and the principal will be repaid in full at maturity via bullet repayment.

Compared to the previous month, rates have declined. The 2-year bond fell from 15.541% in September to 14.062% in October, while the 3-year bond dropped from 16.541% to 15.062%. This follows the Central Bank of Nigeria’s decision to reduce policy rates to 27% at its September Monetary Policy Committee meeting—a move aimed at curbing inflation and stabilizing the foreign exchange market. These developments have made Nigerian bonds increasingly attractive to foreign portfolio investors seeking higher yields.

The bonds are issued under the authority of the Debt Management Office (Establishment) Act, 2003 and the Local Loans (Registered Stock and Securities) Act, CAP L17, Laws of the Federation of Nigeria 2004. Each unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000, up to a maximum of ₦50 million.

The FGN Savings Bond qualifies as an approved investment under the Trustee Investment Act and is recognized as a government security under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making it eligible for tax exemption by pension funds and other qualified institutional investors.

Listed on the Nigerian Exchange Limited (NGX), the bonds offer secondary market trading options, enhancing liquidity for investors. Since its launch in 2017, the FGN Savings Bond programme has aimed to deepen Nigeria’s domestic bond market, promote financial inclusion, and provide retail investors access to secure, low-risk government securities.