The Debt Management Office (DMO) has officially commenced the offering of two new Federal Government of Nigeria (FGN) Savings Bonds, each priced at N1,000 per unit, aimed at encouraging retail participation in the nation’s capital market.
According to a public disclosure issued by the DMO on Monday in Abuja, the first bond is a two-year FGN Savings Bond scheduled to mature on June 11, 2027. This instrument carries an annual interest rate of 16.121 per cent.
The second issuance is a three-year FGN Savings Bond set to mature on June 11, 2028, with a higher yield of 17.121 per cent per annum. Both bonds are available for subscription from June 2 through June 6, with the settlement date fixed for June 11. Interest payments are scheduled quarterly, falling on September 11, December 11, March 11, and June 11.
Each unit of the bond costs N1,000, with a minimum entry point of N5,000 and subsequent investments in multiples of N1,000. The maximum allowable subscription is capped at N50 million.
The DMO emphasized that these bonds are backed by the full faith and credit of the Federal Government of Nigeria and are secured against the country’s general assets. “They qualify as trustee-investable securities under the Trustee Investment Act and meet the definition of government securities under both the Company Income Tax Act and the Personal Income Tax Act,” the statement noted, making them suitable for pension fund investments.
Moreover, the bonds are listed on the Nigerian Exchange Limited and are recognized as liquid assets for the purpose of calculating banks’ liquidity ratios.
FGN Savings Bonds serve as an accessible investment platform particularly geared toward individual and small-scale investors. Unlike traditional FGN Bonds which often have steep entry thresholds, these savings bonds are retail-friendly and carry low risk due to government backing.
Proceeds generated from these instruments are utilized by the federal government to fund public sector projects and offset budgetary shortfalls, reinforcing their strategic importance to national development.
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