The Debt Management Office (DMO) has confirmed the successful allotment of ₦3.05 billion in the September 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, with strong interest recorded across both the two-year and three-year tenors.
The bonds, issued at ₦1,000 per unit, opened for subscription on Monday, September 1, and closed on Friday, September 5, 2025. Investors were able to subscribe with a minimum of ₦5,000, in multiples of ₦1,000, up to a cap of ₦50 million.
According to data released by the DMO over the weekend, the two-year bond, maturing in September 2027, was allotted at an annual interest rate of 15.541%, attracting ₦631.76 million from 793 successful investors.
The three-year bond, which matures in September 2028, saw higher demand, raising ₦2.416 billion from 1,246 subscribers, and offering a 16.541% return per annum.
Settlement Date: September 10, 2025
Interest Payment Schedule: Quarterly — March 10, June 10, September 10, and December 10
About the FGN Savings Bond
Launched in 2017, the FGN Savings Bond programme was designed to:
- Deepen Nigeria’s domestic bond market
- Promote financial inclusion
- Provide retail investors access to safe and low-risk investment options
The bonds are backed by the full faith of the Federal Government and qualify as approved investments under the Trustee Investment Act. They are also tax-exempt for qualifying investors under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), making them especially attractive for pension funds and institutional investors.
While the September allotment is substantial, it fell slightly below the ₦3.3 billion raised in August 2025.
In that cycle:
- The 2-year bond (due August 2027) raised ₦573.31 million at a 14.401% interest rate
- The 3-year bond (due August 2028) raised ₦2.74 billion, offering a 15.401% return
- A total of 2,166 investors participated, with 892 opting for the 2-year and 1,274 for the 3-year instrument
The increased coupon rates in September reflect the government’s response to market demand and broader macroeconomic conditions, making the instruments even more appealing to retail investors.
The growing subscription levels underscore a rising appetite for secure, interest-yielding investments among Nigerians, particularly in the face of economic uncertainty and inflationary pressures.
Analysts say the FGN Savings Bond offers a practical entry point for retail savers and an opportunity to diversify portfolios with risk-free returns guaranteed by the federal government.
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