The Debt Management Office (DMO) has revealed a total allocation of N4.28 billion from the Federal Government of Nigeria (FGN) Savings Bonds auction for May 2025.
Initiated in 2017, the FGN Savings Bond programme was established to strengthen the domestic bond market, enhance financial inclusion, and provide retail investors with access to secure, low-risk government securities.
The May 2025 allocation reflects a minor reduction from the N4.34 billion recorded in April 2025.
In April 2025, the DMO allocated a total of N397.898 billion through two re-opening issues—the 19.30% FGN APR 2029 (5-Year Bond) and the 19.89% FGN MAY 2033 (9-Year Bond).
According to data released on the DMO’s official website on Friday, the bonds were available for subscription between May 5 and May 9, 2025.
Investors could choose between two tenors: a 2-year bond maturing on May 14, 2027, and a 3-year bond maturing on May 14, 2028.
Both series are scheduled to settle on May 14, 2025, with interest payments to be made quarterly on August 14, November 14, February 14, and May 14 throughout the duration of the bonds.
The DMO disclosed that the 2-year FGN Savings Bond was offered at an interest rate of 16.173%, with a total allocation of N840.43 million across 994 successful subscriptions.
Conversely, the 3-year FGN Savings Bond, with an interest rate of 17.173%, secured a total allocation of N3.45 billion from 1,537 successful subscriptions.
The bonds are issued at N1,000 per unit, requiring a minimum subscription of N5,000, with increments of N1,000 thereafter, up to a cap of N50 million.
The FGN Savings Bond qualifies as an approved investment under the Trustee Investment Act and is also recognised as a government security under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making it eligible for tax exemptions for pension funds and other qualified institutional investors.
Moreover, the bonds are listed on the Nigerian Exchange Limited (NGX), providing investors with the flexibility to trade them on the secondary market, which enhances overall liquidity. They also qualify as liquid assets for the calculation of banks’ liquidity ratios.
Over the years, FGN Savings Bonds have gained traction among Nigerians seeking stable and predictable investment opportunities. In light of inflation concerns and the volatility of interest rates in traditional savings options, these government-backed bonds provide a reliable and consistent return.
