The Debt Management Office (DMO) has officially launched its August 2025 offer for Federal Government of Nigeria (FGN) Savings Bonds, available to all Nigerians from August 4 to August 8, 2025.
Investors can choose between the following options:
- 2-Year Bond (maturing on August 13, 2027) with an interest rate of 14.401% per annum.
- 3-Year Bond (maturing on August 13, 2028) with an interest rate of 15.401% per annum.
Each bond unit is priced at ₦1,000, with a minimum investment of ₦5,000 and additional increments in multiples of ₦1,000, up to a maximum of ₦50 million. Interest payments will be made quarterly on February 13, May 13, August 13, and November 13. Settlement begins on August 13, with full redemption occurring at maturity (dmo.gov.ng).
Compared to July’s offer, interest rates have decreased slightly: the 2-Year Bond’s rate fell from 16.762% to 14.401%, and the 3-Year Bond’s rate decreased from 15.762% to 15.401%, following the Central Bank of Nigeria’s decision to maintain a policy rate of 27.5%.
Why Invest in FGN Savings Bonds?
- They are heavily backed by the government.
- They offer a steady fixed income with quarterly interest payments.
- They are listed on the Nigeria Exchange (NGX), making them tradable for liquidity.
- They qualify as liquid assets for banks and are tax-exempt for pension funds.
- They are approved investments under the Trustee Investment Act.
With strong demand seen in July, approximately ₦4.27 billion was allocated across over 2,600 investors. The DMO continues to provide Nigerians with low-risk investment opportunities through its monthly bond offerings. These bonds are particularly appealing in the current inflationary environment, offering investors both a hedge against inflation and a predictable income.
