The Debt Management Office (DMO) has announced the opening of the October 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds.
The savings bond offers investors attractive interest rates of 14.062 per cent and 15.062 per cent, per annum for the 2-year and 3-year tenors, respectively.
In a circular issued on Monday, the DMO said the offer for subscription opened on Monday, October 6, 2025, and will close on Friday, October 10, 2025, while the settlement date is scheduled for October 15, 2025.
It further said coupon payments will be made quarterly — on January 15, April 15, July 15, and October 15 each year — throughout the life of the bond.
The DMO stated that the 2-year FGN Savings Bond will mature on October 15, 2027, while the 3-year bond will mature on October 15, 2028.
It pointed out that interest on the bonds is payable quarterly, while the principal will be repaid in full at maturity (bullet repayment).
The 2-year bond interest rate decreased to 14.062 per cent in October 2025, from 15.541 per cent in September, while the 3-year bond interest rate fell to 15.062 per cent, per annum in October from 16.541 per cent in September.
The Central Bank of Nigeria (CBN) at its Monetary Policy Committee meeting in September, cut the monetary policy rate policy rate to 27 per cent.
According to a statement published on the DMO’s official website, the bonds are being issued on behalf of the Federal Government of Nigeria in accordance with the Debt Management Office (Establishment) Act, 2003 and the Local Loans (Registered Stock and Securities) Act, CAP L17, Laws of the Federation of Nigeria 2004.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing investors to subscribe for up to N50 million.
The FGN Savings Bond qualifies as an approved investment under the Trustee Investment Act and is also recognised as a government security under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA). This makes it eligible for tax exemption by pension funds and other qualified institutional investors.
Furthermore, the bonds are listed on the Nigerian Exchange Limited (NGX), providing investors with the option to trade them on the secondary market and enhancing overall liquidity.
