The Debt Management Office (DMO) has released the results of the Federal Government of Nigeria (FGN) Savings Bonds auction for May 2025, reporting a total allotment of ₦4.28 billion across two different tenors.
In a 9am News report, data published on the DMO’s official website on Friday showed that the subscription window was open between May 5 and 9, 2025.
The allotment marks a slight decline from the ₦4.34 billion recorded in April 2025, reflecting marginal adjustments in investor sentiment.
Bond Tenors and Subscription Breakdown
The DMO stated that investors subscribed to two bond types:
- 2-Year Bond, maturing on May 14, 2027, with an interest rate of 16.173%
- Total allotment: ₦840.43 million
- Number of successful subscriptions: 994
- 3-Year Bond, maturing on May 14, 2028, with an interest rate of 17.173%
- Total allotment: ₦3.45 billion
- Number of successful subscriptions: 1,537
Both bonds are scheduled to settle on May 14, 2025, with quarterly interest payments on August 14, November 14, February 14, and May 14 until maturity.
How the FGN Savings Bond Works
The FGN Savings Bond is priced at ₦1,000 per unit, with a minimum subscription of ₦5,000, and in multiples of ₦1,000 thereafter, up to a maximum subscription of ₦50 million.
Launched in 2017, the initiative aims to deepen Nigeria’s domestic bond market, promote financial inclusion, and offer retail investors a secure, low-risk investment alternative backed by the federal government.
The bond is:
- An approved investment under the Trustee Investment Act
- Recognized as a government security under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA)
- Tax-exempt for pension funds and qualified institutional investors
- Listed on the Nigerian Exchange (NGX), enabling secondary market trading
- Eligible as a liquid asset for bank liquidity ratio calculations
Over time, the FGN Savings Bond has gained popularity among Nigerians seeking predictable returns and capital preservation, especially in an environment of rising inflation and volatile interest rates on traditional savings accounts.
In April 2025, the DMO also reported a significant allotment of ₦397.898 billion in two re-opened longer-tenor bonds 19.30% FGN APR 2029 and 19.89% FGN MAY 2033 indicating sustained investor interest in federal debt instruments.
As the Nigerian government continues to raise funds to meet fiscal needs and foster economic growth, the Savings Bond programme remains a vital tool for engaging domestic investors in the nation’s financial future.
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