The Federal Government of Nigeria, through the Debt Management Office (DMO), is seeking to attract investment from its citizens by offering highly competitive interest rates of up to 16.541% per annum in its latest offering of Federal Government of Nigeria (FGN) Savings Bonds.
According to an official circular published on Monday, the subscription period for this September 2025 issue is now open and is set to close on Friday, September 5, 2025.
This issuance presents investors with two distinct options, both offering fixed returns paid directly into their accounts on a quarterly basis. The first is a two-year FGN Savings Bond, which is scheduled to mature on September 10, 2027, and carries a substantial annual interest rate of 15.541 percent.
For those seeking a slightly longer investment horizon and an even higher return, the three-year bond matures on September 10, 2028, and offers an attractive annual rate of 16.541 percent. This represents a significant increase from the previous month’s rates, with the two-year bond rising from 14.401% in August and the three-year bond increasing from 15.401%.
The settlement for all successful applications is set for September 10, 2025. Investors can look forward to receiving their interest payments directly on a predictable schedule every quarter, specifically on March 10, June 10, September 10, and December 10 of each year until the bond’s maturity.
The bond is designed to be accessible to a wide range of retail investors, with each unit priced at a affordable โฆ1,000. The minimum subscription is set at โฆ5,000, and subsequent investments can be made in convenient multiples of โฆ1,000, all the way up to a maximum subscription of โฆ50 million.
The FGN Savings Bond programme was originally launched in 2017 with a triple objective: to deepen Nigeria’s domestic capital market, enhance financial inclusion by bringing more citizens into the formal investment landscape, and provide a secure, low-risk savings instrument for the general public. Beyond its appealing returns, the bond carries significant benefits under Nigerian law.
It is classified as an approved investment under the Trustee Investment Act and is officially recognized as a government security for tax purposes under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA). This prestigious status grants it tax exemptions, making it a particularly attractive option for pension funds and other qualified institutional investors looking for stable, government-backed returns.
