The Debt Management Office (DMO) has opened the subscription window for the June 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, offering attractive annual interest rates of 16.121 per cent and 17.121 per cent for two- and three-year tenors, respectively
This offering presents a fresh opportunity for retail investors, including individuals and institutions, to earn competitive fixed returns on low-risk government-backed securities.
The DMO which announced this through its official communication channels, noted that the subscription period will run from Monday, June 2, to Friday, June 6, 2025.
The bonds will be issued and settled on Tuesday, June 11, 2025, and will mature on June 11, 2027, for the two-year bond and June 11, 2028, for the three-year bond.
The two-year savings bond is priced at an annual interest rate of 16.121 per cent, while the three-year savings bond offers a slightly higher return of 17.121 per cent per annum.
These interest payments will be made quarterly to bondholders, specifically on March 11, June 11, September 11, and December 11 of each year, beginning from the settlement date.
Although the interest rates represent a marginal decrease from the rates offered in May, when the DMO offered 16.173 per cent and 17.173 per cent for the two-year and three-year bonds, respectively, the yields remain attractive in a high-interest-rate environment.
The adjustment is seen as a reflection of evolving macroeconomic dynamics, particularly the Central Bank of Nigeria’s (CBN) monetary policy stance.
The CBN has maintained its benchmark Monetary Policy Rate (MPR) at 27.5 per cent for several months in a bid to control inflationary pressures and stabilise the foreign exchange market.
This policy environment has contributed to sustained interest in fixed-income securities, especially from conservative investors and foreign portfolio investors seeking stable, high-yield opportunities.
The FGN Savings Bond is designed to promote financial inclusion by making it easier for everyday Nigerians to invest in secure government securities.
Each bond unit is priced at ₦1,000, with a minimum subscription amount of ₦5,000. Investors can increase their stake in multiples of ₦1,000, up to a maximum of ₦50m. This accessible structure makes the bonds suitable for small savers, institutional investors, and high-net-worth individuals alike.
The demand for savings bonds has remained strong in recent months. In May 2025, the Federal Government raised a total of ₦4.28bn through its monthly FGN Savings Bond auction.
The amount was only slightly lower than the ₦4.34bn raised in April.
Of the May total, ₦840.43m was allotted to investors in the two-year bond across 994 successful subscriptions, while ₦3.45bn was raised through the three-year bond, with 1,537 subscriptions.
The FGN Savings Bond programme, launched in 2017, is part of the Federal Government’s broader efforts to deepen the domestic bond market, diversify its funding sources, and promote a savings culture among Nigerians. It also helps to reduce reliance on external borrowing by mobilising funds locally.
The DMO has therefore advised interested investors to approach any of the accredited stockbroking firms listed on the Nigerian Exchange (NGX) to subscribe before the closing date of June 6.
With quarterly interest payments and guaranteed principal repayment at maturity, the FGN Savings Bond continues to be viewed as a reliable investment option in Nigeria’s evolving financial landscape.
