The federal government, through the Debt Management Office (DMO), has introduced the July 2025 Federal Government of Nigeria (FGN) savings bonds, offering attractive interest rates of up to 16.762% per year.

The subscription period opened on Monday, July 7, 2025, and will end on Friday, July 11, 2025, as stated in a DMO circular.

Why subscribe to FGN's savings bond

This bond offering consists of two types: a two-year FGN savings bond, which will mature on July 16, 2027, with an interest rate of 15.762% per year, and a three-year FGN savings bond, maturing on July 16, 2028, with a rate of 16.762% per year.

The bonds are priced at N1,000 per unit, with a minimum investment of N5,000, and additional investments must be in multiples of N1,000, up to a maximum of N50 million.

Interest payments will be made quarterly on January 16, April 16, July 16, and October 16, with the principal amount paid back in full when the bond matures.

These savings bonds are guaranteed by the full faith and credit of the Federal Government, offering a secure, low-risk investment option.

The DMO encourages interested investors to reach out to authorised stockbroking firms listed on their website to participate in the offering.

In June 2025, the Federal Government raised N4.01 billion through its FGN savings bond auction, showing strong demand for long-term investments.

The June figure is slightly lower than the N4.28 billion raised in May 2025. According to DMO data, the two-year bond attracted N2.01 billion from 1,202 successful subscriptions, while the three-year bond raised N1.995 billion from 1,321 successful subscriptions.

More details about FGN savings bond

The FGN Savings Bond program, launched in 2017, aims to expand the domestic bond market, promote financial inclusion, and provide retail investors with access to secure, low-risk government securities.

It is recognised under the Trustee Investment Act and the Personal Income Tax Act (PITA), qualifying for tax exemptions by pension funds and other qualified institutional investors.

The bonds are also listed on the Nigerian Exchange Limited (NGX), allowing investors to trade them in the secondary market, which improves liquidity.

They are also considered liquid assets for calculating banks' liquidity ratios. Over time, FGN Savings Bonds have gained popularity among Nigerians seeking stable, predictable investment opportunities, especially in light of concerns about inflation and fluctuating interest rates in traditional savings products.

Nigeria’s dollar bond becomes worst-performing

Earlier, Legit.ng reported that Nigeria's dollar bonds were among the poorest performers in emerging markets, with its sovereign-risk premium reaching an eight-month high.

Some investors may worry about a similar outcome in Nigeria, where the impact of President Bola Tinubu's policies has led to hardship for the people.

According to Citigroup strategists Alexander Rozhetskin and Luis Costa, political instability and a challenging reform environment are influencing the pricing of Nigerian bonds.