FGN Savings Bonds Back on Offer — A Solid Play for Risk-Averse Retail Investors
In a move to deepen domestic investment and expand financial inclusion, the Federal Government of Nigeria, through the Debt Management Office (DMO), has announced two new tranches of FGN Savings Bonds open for public subscription this June. The offerings target everyday investors, providing a secure, interest-yielding entry into the government securities market at ₦1,000 per unit.
According to a public statement issued by the DMO on Monday, the offerings are as follows:
- 2-Year FGN Savings Bond, due June 11, 2027, with a competitive annual yield of 16.121%
- 3-Year FGN Savings Bond, due June 11, 2028, offering a higher annual return of 17.121%
The subscription window runs from June 2 to June 6, with settlement on June 11. Coupon payments—essentially the interest—are paid quarterly, specifically on March 11, June 11, September 11, and December 11, providing steady income for investors.
Low Entry Point, High Confidence
The DMO reiterated that the bonds are priced at ₦1,000 per unit, with a minimum subscription of ₦5,000 and subsequent investments in multiples of ₦1,000. The cap per individual or entity is ₦50 million, making it ideal for both small savers and institutional investors.
But what sets FGN Savings Bonds apart from other fixed-income instruments is accessibility, safety, and predictability. These bonds are:
- Backed by the full faith and credit of the Federal Government of Nigeria
- Classified as trustee-grade securities under the Trustee Investment Act
- Exempt from tax for pension funds and other qualifying institutional investors
- Listed on the Nigerian Exchange Limited (NGX), enabling liquidity for early exits
- Recognized as liquid assets under banking sector regulations
A Golden Opportunity for Conservative Investors
These bonds represent a smart option for risk-averse investors seeking to hedge against inflation, earn stable returns, and preserve capital. In a high-interest environment, yields of 16–17% compare favourably with most savings accounts and many mutual funds.
More importantly, they offer a bullet repayment structure—meaning the full principal is returned at maturity—making them attractive to long-term planners and those seeking guaranteed capital recovery.
Why It Matters: Retail Bonding as a Fiscal Tool
The FGN Savings Bond programme was launched in 2017 to democratize access to government securities and promote a savings culture among Nigerians. It also serves a strategic fiscal purpose: enabling the Federal Government to plug budget deficits and finance infrastructure projects without over-relying on foreign loans.
“What we’re seeing is the Federal Government leaning into domestic debt mobilization as a credible and sustainable path to national development,” said a BRANDECONOMY analyst.
At a time when the government is reining in deficit financing and seeking to shore up revenue without overburdening taxpayers, the FGN Savings Bond has emerged as a win-win for both treasury managers and the investing public.
BRANDECONOMY TAKEAWAY
For retail investors seeking reliable returns, portfolio diversification, and capital preservation, this bond issuance is a timely opportunity. It reflects a growing shift toward broad-based domestic debt participation, one that aligns with global best practices in financial inclusion and economic self-reliance.
As inflation shows early signs of stabilizing and monetary policy finds firmer footing, FGN Savings Bonds may well be the most sensible investment hedge for households and small businesses in Q2 2025.
QUICK FACTS: FGN SAVINGS BOND (June 2025)
| Feature | 2-Year Bond | 3-Year Bond |
| Maturity | June 11, 2027 | June 11, 2028 |
| Interest Rate | 16.121% p.a. | 17.121% p.a. |
| Minimum Investment | ₦5,000 | ₦5,000 |
| Entry Price | ₦1,000 per unit | ₦1,000 per unit |
| Tax Exemptions | Yes (Pension Funds, Others) | Yes |
| Liquidity | Listed on NGX | Listed on NGX |
| Repayment | Bullet at maturity | Bullet at maturity |
Stay with BRANDECONOMY for expert perspectives and actionable insights into Nigeria’s evolving investment landscape.
