The Debt Management Office (DMO) has allotted N4.28 billion worth of Federal Government Savings Bonds during its May 2025 auction, representing a marginal decline from the N4.34 billion issued in April.
The May offering featured two investment tenors – a 2-year bond maturing in May 2027 and a 3-year bond maturing in May 2028, both settling on May 14, 2025 with quarterly interest payments scheduled throughout their terms.
This retail investment programme, established in 2017 to broaden participation in government securities and strengthen domestic capital markets, contrasts with April’s substantially larger N397.9 billion issuance across two reopened benchmark bonds – the 5-year FGN APR 2029 and 9-year FGN MAY 2033 securities.
The May savings bonds were open for subscription from May 5-9, 2025, continuing the government’s strategy to provide secure investment options while developing Nigeria’s fixed income market
The DMO revealed that the 2-year FGN Savings Bond was offered at an interest rate of 16.173% and recorded a total allotment of N840.43 million across 994 successful subscriptions.
Meanwhile, the three-year FGN Savings Bond, offered at 17.173%, attracted a total allotment of N3.45 billion from 1,537 successful subscriptions.
The bonds were issued at N1,000 per unit, with a minimum subscription requirement of N5,000 and in multiples of N1,000 thereafter, up to a maximum subscription 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). This makes it eligible for tax exemption by pension funds and other qualified institutional investors.
Furthermore, the bonds are listed on the Nigerian Exchange Limited (NGX), providing investors with the option to trade them on the secondary market and enhancing overall liquidity. They also qualify as liquid assets to compute banks’ liquidity ratios.
Over the years, FGN Savings Bonds have become increasingly popular among Nigerians looking for safe and predictable investment options. Amid concerns over inflation and volatile interest rates in traditional savings products, these government-backed bonds offer stability and consistent returns.
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