The Debt Management Office (DMO) has allocated N4.34 billion for the April 2025 issuance of Federal Government of Nigeria (FGN) Savings Bonds. The subscription window, open from April 7 to 11, 2025, offered two bond tenors: a 2-year bond maturing on April 16, 2027, and a 3-year bond maturing on April 16, 2028.
These FGN Savings Bonds are recognized as securities eligible for trustee investments under the Trustee Investment Act and qualify for tax exemptions under the Company Income Tax Act and Personal Income Tax Act, making them appealing for pension funds and other qualifying investors.
According to the DMO’s website, both bond series will settle on April 16, 2025, with quarterly coupon payments scheduled for July 16, October 16, January 16, and April 16 throughout their terms.
The 2-year bond, with a coupon rate of 16.05%, saw N1.135 billion allotted across 862 successful subscriptions. The 3-year bond, offering a higher 17.05% yield, attracted greater demand, with N3.203 billion allotted to 1,293 successful subscriptions.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional units in multiples of N1,000, up to a maximum of N50,000,000. Interest is paid quarterly, with the principal repaid in full at maturity.
Targeted at retail investors, the FGN Savings Bonds continue to draw significant interest as Nigerians seek secure, predictable returns amid market volatility. The elevated interest rates for the April issuance reflect the government’s strategy to mobilize domestic funds while offering competitive yields to promote savings.
Launched in 2017, the FGN Savings Bond program aims to expand the domestic bond market, foster financial inclusion, and provide retail investors with access to government-backed securities. With allotments regularly exceeding billions of naira, the program remains a trusted option for individuals pursuing low-risk investments supported by the federal government.
WHAT YOU SHOULD KNOW
The April 2025 FGN Savings Bonds issuance of N4.34 billion underscores Nigeria’s strategic use of retail-focused debt instruments to finance its budget, promote savings, and deepen financial inclusion.
The high coupon rates, tax benefits, and low entry point make the bonds attractive to retail investors, while government backing ensures safety.
The program’s success since 2017 highlights its role as a reliable tool for both investors and policymakers, with the potential to further transform Nigeria’s domestic debt market if awareness and access improve.
ALSO READ TOP STORIES FROM VERILY NEWS
