The Federal Government of Nigeria, through the Debt Management Office (DMO), opens the subscription window for the January 2025 Federal Government Savings Bonds (FGN Savings Bonds). This opportunity is available to both individual and institutional investors from January 13 to January 17, 2025.
Investors can choose between two bond options:
- Two-Year Bond: Maturing on January 22, 2027, with an interest rate of 17.235%.
- Three-Year Bond: Maturing on January 22, 2028, offering 18.235%.
Each unit of the bond costs ₦1,000, with a minimum subscription of ₦5,000 and increments in multiples of ₦1,000, up to ₦50 million. Successful investments will be settled by January 22, 2025, and coupon payments are scheduled quarterly, starting on April 22, 2025.
The bond’s increased yield reflects the country’s current economic conditions, with interest rates rising sharply compared to previous offerings. The three-year bond now offers 18.235%, a significant jump from 12.033% in January 2024, mirroring tighter monetary policies aimed at combating inflation, which stands at over 33%.
The Central Bank of Nigeria (CBN) continues to increase the Monetary Policy Rate (MPR), now at 27.50%, to address inflationary pressures and stabilize the economy. This environment has made government bonds more attractive to both local and foreign investors seeking reliable returns.
The success of the December 2024 FGN bond auction highlights the strong interest in these securities. The government raised over ₦211 billion, divided between a five-year bond and a seven-year bond, with competitive subscription levels and high marginal rates of 21.14% and 22.00%, respectively.
This initiative provides a platform for Nigerians to grow their savings securely while supporting national development. With high returns and quarterly payouts, the January FGN Savings Bond offers a practical solution for those seeking stability in uncertain economic times. Investors have until January 17, 2025, to seize this opportunity.
, opens the subscription window for the January 2025 Federal Government Savings Bonds (FGN Savings Bonds). This opportunity is available to both individual and institutional investors from January 13 to January 17, 2025.){kind=link}