The Debt Management Office (DMO) has opened the subscription window for the July 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, offering interest rates as high as 16.762% per annum.
According to a circular published on the DMO’s website on Monday, July 7, the offer includes two tenors: a two-year bond maturing on July 16, 2027, with an annual return of 15.762%, and a three-year bond maturing on July 16, 2028, offering 16.762%. Subscription is open until Friday, July 11, 2025.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and subsequent investments in multiples of N1,000. The maximum subscription per investor is capped at N50 million. Interest payments are scheduled quarterly—on January 16, April 16, July 16, and October 16.
The savings bond programme, introduced in 2017, is part of the government’s broader strategy to deepen the domestic bond market, promote financial inclusion, and give retail investors access to safe, low-risk investment opportunities.
While this month’s rates are slightly lower than those in June—when the 3-year bond offered 17.121% and the 2-year bond returned 16.121%—the instruments remain attractive amid a stable monetary policy environment. The Central Bank of Nigeria (CBN) has maintained its benchmark interest rate at 27.5% in recent months to combat inflation and support the naira.
That macroeconomic stability has continued to draw attention to Nigerian debt securities. Analysts say the CBN’s policy posture, combined with high real yields, is encouraging foreign portfolio investors (FPIs) to revisit Nigeria’s fixed income market.
In June 2025, the Federal Government raised N4.01 billion from the FGN Savings Bond auction, slightly down from the N4.28 billion raised in May.
DMO records show that the 2-year bond received ₦2.01 billion across 1,202 successful subscriptions, while the 3-year bond secured ₦1.995 billion from 1,321 investors.
The FGN Savings Bond qualifies as an approved investment under the Trustee Investment Act and is recognised as a government security under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), allowing pension funds and other institutional investors to enjoy tax exemptions.
Additionally, the bonds are listed on the Nigerian Exchange Limited (NGX), enhancing liquidity by enabling secondary market trading. They also qualify as liquid assets for banks’ liquidity ratio computations.
Amid concerns about inflation and the volatility of traditional savings instruments, FGN Savings Bonds have gained popularity for offering retail investors dependable returns and financial security.