The Debt Management Office (DMO) has announced the opening of subscription for the April 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bond, with interest rates of up to 17.046 per cent per annum for retail investors.
The bond offering, the DMO said is structured as follows: “2-Year FGN Savings Bond due April 16, 2027: 16.046% per annum; and 3-Year FGN Savings Bond due April 16, 2028: 17.046% per annum.”
The agency said the subscription period for the bond opens on Monday, April 7, 2025, and will close on Friday, April 11, 2025, while the settlement date is scheduled for April 16, 2025, which will also be the first coupon payment date.
It said subsequent coupon payments will be made quarterly on July 16, October 16, January 16, and April 16 of each year.
Further details of the offer show that it will be sold at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, up to a maximum of N50,000,000, while interest payment would be quarterly with bullet repayment on the maturity date.
The DMO emphasised that the FGN Savings Bond qualifies as a security in which trustees can invest under the Trustee Investment Act, and also qualifies as a government security under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), enabling tax exemption status for pension funds and other eligible investors.
The bonds are also listed on the Nigerian Exchange Limited (NGX), thereby offering investors flexibility in liquidity through the secondary market.
It also qualifies as a liquid asset for the purpose of computing liquidity ratios for banks.
The DMO reaffirmed that the FGN Savings Bond is fully backed by the full faith and credit of the Federal Government of Nigeria and is charged upon the general assets of the nation.
The DMO advised interested investors to contact stockbroking firms accredited by the Nigerian Exchange or visit its website for further details on how to subscribe.
