The Debt Management Office (DMO) has today open subscription for two federal government of Nigeria (FGN) savings bonds at N1,000 per unit.
The first offer is a two-year savings bond due to mature on June 11, 2027, at 16.121 per cent per annum, while the second is a three-year savings bond due to mature on June 11, 2028, at an interest rate of 17.121 per cent per annum.
This is in spite of the dwindling investor appetite for short-term bonds.
The FGN savings bond offer is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.
In a statement on its official X handle on Sunday, DMO said the offers will open today June 2, 2025 will the closing date will be June 6, 2025.
The DMO said the settlement date is June 11, 2025, while coupon payment dates are made quarterly – September 11, December 11, March 11 and June 11.
According to the DMO, “They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
“Interest is payable quarterly while bullet repayment is made on the maturity date.”
It said the savings bonds, like all other government securities, are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustees Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investors,” DMO said.
The agency further said the bonds are listed on the Nigerian Exchange Limited ( NGX) and qualify as a liquid asset for liquidity ratio calculation for banks.
Weak investor appetite for short-term bonds saw the Debt Management Office (DMO) raising onlÿ N295.98 billion from its N300 billion May 2025 Federal Government of Nigeria (FGN) bond auction.
According to the result published on the DMO website, investors showed preference for longer term bonds as the five year FGN bonds maturing in April 2029 experienced weak demand and was undersubscribed by as much as 83 per cent,
The Federal Government has shown preference for borrowing from the domestic bond market and has so far borrowed a total of N1.94 trillion from bond investors in the first quarter of 2025.
The borrowings are part of the government’s plan to fund its budget deficit of N13 trillion.