By Seun Ibiyemi
The Debt Management Office (DMO) has launched the September 2025 Federal Government of Nigeria (FGN) savings bonds, offering investors attractive interest rates of up to 16.541 per cent per annum.
Subscriptions opened on Monday, September 1, 2025, and will close on Friday, September 5, with settlement scheduled for September 10. Interest payments will be made quarterly on March 10, June 10, September 10, and December 10 directly to investors.
The DMO announced the offering in a circular published on its website. Investors can choose between two bond categories.
The first is a two-year bond, maturing on September 10, 2027, with an annual interest rate of 15.541 per cent. The second is a three-year bond, set to mature on September 10, 2028, offering a higher annual rate of 16.541 per cent.
The 2-year bond rate rose from 14.401 per cent in August to 15.541 per cent in September, while the 3-year bond increased from 15.401 per cent to 16.541 per cent over the same period.
This offering provides Nigerians with an opportunity to invest in government-backed securities, supporting both personal and national financial stability.
The Central Bank of Nigeria (CBN) recently retained policy rates at 27.5 per cent during its Monetary Policy Committee meeting. The CBN’s approach to controlling inflation and stabilising the foreign exchange market has enhanced the appeal of Nigerian bonds, particularly among foreign portfolio investors seeking higher yields.
Launched in 2017, the FGN Savings Bond programme aims to deepen the domestic bond market, promote financial inclusion, and provide retail investors with access to secure, low-risk government securities.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing subscriptions up to N50 million.
The savings bond qualifies as an approved investment under the Trustee Investment Act and is recognised as a government security under both the Company Income Tax Act and the Personal Income Tax Act, making it eligible for tax exemption by pension funds and other qualified institutional investors.
The bonds are also listed on the Nigerian Exchange Limited (NGX), giving investors the option to trade them on the secondary market and enhancing liquidity. They further qualify as liquid assets for banks in computing their liquidity ratios.