The Debt Management Office (DMO) has announced a total allocation of N4.28 billion from the Federal Government of Nigeria (FGN) Savings Bonds auction for May 2025.
Launched in 2017, the FGN Savings Bond programme aims to enhance the domestic bond market, foster financial inclusion, and provide retail investors with access to secure, low-risk government securities.
The allotment for May 2025 is a slight decrease 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).
Data released on the DMO’s official website on Friday indicates that these bonds were available from May 5 to May 9, 2025.
Investors had the opportunity to subscribe to two tenors: a 2-year bond maturing on May 14, 2027, and a 3-year bond maturing on May 14, 2028.
Both series are set to settle on May 14, 2025, with interest payments scheduled quarterly on August 14, November 14, February 14, and May 14 throughout the life of the bonds.
The DMO noted that the 2-year FGN Savings Bond was issued at an interest rate of 16.173% and achieved a total allocation of N840.43 million from 994 successful subscriptions.
In contrast, the 3-year FGN Savings Bond, offered at 17.173%, received a total allocation of N3.45 billion from 1,537 successful subscriptions.
The bonds are priced at N1,000 per unit, with a minimum subscription of N5,000, and subsequent multiples of N1,000, up to a maximum of N50 million.
The FGN Savings Bond is an approved investment under the Trustee Investment Act and is also classified 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.
Additionally, these bonds are listed on the Nigerian Exchange Limited (NGX), allowing investors to trade them on the secondary market, thereby enhancing liquidity. They are also recognised as liquid assets for calculating banks’ liquidity ratios.
Over time, FGN Savings Bonds have gained popularity among Nigerians seeking safe and predictable investment avenues. Given concerns about inflation and fluctuating interest rates in traditional savings products, these government-backed bonds offer a stable and reliable return.
