Nigeria’s Debt Management Office (DMO) has officially announced the opening of subscriptions for the April 2025 Savings Bond.
The bond presents highly attractive interest rates for investors. Retail investors can access rates as high as 17.046% per annum, a significant incentive amidst Nigeria’s current economy.
The bond offer comes in two tranches: a 2-Year FGN Savings Bond due April 16, 2027, offering 16.046% per annum, and a 3-Year FGN Savings Bond due April 16, 2028, with a 17.046% return per annum. Subscriptions commenced on Monday, April 7, 2025, and will close on Friday, April 11, 2025. The settlement and first coupon payment date is scheduled for April 16, 2025.
Investors will benefit from quarterly interest payments, specifically on the 16th of July, October, January, and April annually. The bond requires a minimum subscription of N5,000, with purchases thereafter in multiples of N1,000, up to a maximum of N50 million.
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The DMO emphasised that these savings bonds are recognised as qualifying securities under several Nigerian tax laws, making them tax-efficient for pension funds and eligible investors. Moreover, the bonds are listed on the Nigerian Exchange Limited (NGX), offering liquidity and allowing secondary market trading, a key advantage for investors who may wish to sell before maturity.
The FGN Savings Bond is fully backed by the federal government’s full faith and credit, ensuring a risk-free investment opportunity. It also qualifies as a liquid asset for banks, enhancing its attractiveness across different sectors of the economy.
Given Nigeria’s persistent inflation challenges, these high-yielding bonds are expected to attract significant participation from both individuals and institutional investors seeking safe, stable returns. Interested investors are encouraged to liaise with accredited stockbrokers or visit the DMO’s website for further subscription details.
