The Debt Management Office (DMO) launches the December 2024 Federal Government Savings Bond (FGN Savings Bond), providing an attractive investment option for Nigerians. The subscription period runs from December 2 to December 6, 2024, inviting both individual and institutional investors.
This month’s offering includes two types of bonds:
- Two-year bond: Matures on December 11, 2026, with an interest rate of 17.48%.
- Three-year bond: Matures on December 11, 2027, offering an 18.48% interest rate.
Each bond unit costs N1,000, with a minimum investment of N5,000. Additional purchases must be in increments of N1,000, and investors can subscribe up to N50 million. The settlement date is December 11, 2024, with the first quarterly interest payment on March 11, 2025, followed by payments in June, September, and December.
The current rates show a significant increase compared to last year. In December 2023, similar bonds offered 13.28%, marking a rise of over 5 percentage points in one year. This increase follows the Central Bank of Nigeria’s (CBN) consistent interest rate hikes throughout 2024 to control inflation and stabilize the foreign exchange market.
Recently, the CBN raised its benchmark interest rate to 27.50%, making government-backed bonds even more attractive. These higher yields draw both local and international investors seeking stable returns in a volatile economic environment.
Investor confidence in Nigerian bonds remains strong. In November, the government raised N369.59 billion through its bond auction, surpassing expectations. The 7-year bond attracted significant interest, with subscriptions reaching N294.02 billion—far above the initial N60 billion offer. The bond was allotted at a marginal rate of 22.00%, reflecting robust demand for long-term investments.
The 5-year bond also saw solid participation, with subscriptions totaling N75.56 billion. This response highlights the market’s preference for secure, high-yield investments, reinforcing trust in government-backed securities.
The December FGN Savings Bond offers Nigerians a reliable way to invest while contributing to national development. With competitive interest rates and government backing, these bonds provide a stable and lucrative option for investors navigating today’s economic challenges.
 launches the December 2024 Federal Government Savings Bond (FGN Savings Bond), providing an attractive investment option for Nigerians. The subscription period runs from December 2 to December 6, 2024, inviting both individual and institutional investors.){kind=link}