The Federal Government of Nigeria, through the Debt Management Office (DMO), has launched its May 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bond, offering attractive yields to retail investors amid rising inflation and debt servicing concerns.
The offer, which opened on May 5 and will close on May 9, includes two tranches: a 2-year bond maturing May 14, 2027, at 16.173% per annum, and a 3-year bond maturing May 14, 2028, with a yield of 17.173% per annum. Interest payments are scheduled quarterly—on August 14, November 14, February 14, and May 14.
The DMO confirmed that the bonds are fully backed by the sovereign credit of the Federal Government and qualify as liquid assets for banks.
They are also listed on the Nigerian Exchange Limited, enhancing secondary market visibility and tradability.
Subscription starts at a minimum of ₦5,000 and increases in multiples of ₦1,000, up to a cap of ₦50 million per investor. The settlement date is fixed for May 14, 2025.
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The savings bond instruments continue to serve as an accessible entry point for retail investors seeking steady returns in a volatile macroeconomic environment.
The tax-exempt status for pension funds and other approved investors under the Company Income Tax Act and Personal Income Tax Act further boosts their appeal.
This issuance follows the DMO’s March 2025 bond auction, which recorded ₦271.2 billion in allotments, reflecting continued investor appetite for government securities despite Nigeria’s growing public debt, now estimated at ₦144.67 trillion.
Analysts suggest that the attractive interest rates offered in the May savings bond may also help curb inflationary pressures by encouraging domestic savings and reducing excess liquidity.