The Federal Government of Nigeria, through the Debt Management Office (DMO), has launched a new round of the Federal Government of Nigeria (FGN) Savings Bond for the month of May 2025, creating an opportunity for individual investors to participate in secure government-backed investments.
The offer window opened on Monday, May 5, 2025, and will close on Friday, May 9, 2025. According to details released by the DMO, two different tenors are available for subscription: a 2-year bond maturing on May 14, 2027, with an interest rate of 16.173% per annum, and a 3-year bond maturing on May 14, 2028, offering a higher return of 17.173% per annum.
The DMO said the FGN Savings Bond is backed by the full faith and credit of the Federal Government and qualifies as a liquid asset for banks. Interest payments on the bonds will be made quarterly, with fixed payment dates on August 14, November 14, February 14, and May 14 each year. The bonds are designed to help Nigerians earn regular income while supporting the government in raising funds for public development.
The minimum investment amount for the savings bond is set at ₦5,000, and subsequent investments must be in multiples of ₦1,000. A single investor can subscribe for up to ₦50 million. The settlement date for this round of subscription is May 14, 2025.
The FGN Savings Bond is targeted mainly at retail investors, especially those looking for low-risk investments. It is also listed on the Nigerian Exchange Limited (NGX), allowing for some level of liquidity if holders decide to trade their bonds before maturity. The bond qualifies as a government security under Nigerian tax laws, making it tax-exempt for pension funds and other approved investors.
This offering comes at a time when Nigeria’s debt profile is increasing. Recent data shows that Nigeria’s total public debt rose to ₦144.67 trillion in 2024, representing a 48.58% year-on-year increase. In addition, debt servicing costs have gone up by 68%, reaching ₦13 trillion, putting more pressure on the government’s revenue.
Despite the rising debt figures, the government continues to explore domestic borrowing options like the FGN Savings Bond to fund budget deficits, infrastructure, and other key economic activities. By offering attractive interest rates, the DMO hopes to attract more participation from individual investors who seek stable returns in a challenging economic environment.
In a related development, the DMO successfully raised a total of ₦271.2 billion during the FGN bond auction held on March 24, 2025. This shows continued investor interest in government securities, even as the broader financial markets face inflation and currency depreciation challenges.
The Federal Government’s strategy of offering regular monthly bond windows through the DMO provides a way for Nigerians to participate in nation-building while benefiting from safe, fixed-income returns. It also helps to deepen the domestic debt market and reduce the government’s reliance on foreign borrowing.
With interest rates of over 16% and tax advantages, the May 2025 FGN Savings Bond may appeal to savers who are looking to hedge against inflation and earn passive income.
