DMO Announces New FGN Savings Bonds Offering Interest Rates of 16.64% and 17.64%

The Debt Management Office (DMO) has introduced two new Federal Government of Nigeria (FGN) savings bonds, offering attractive interest rates of 16.64% and 17.64%. The bonds are part of the government’s ongoing efforts to raise funds for national development and are available for subscription until March 7, 2025. The DMO’s statement highlights that the two bonds are being offered at N1,000 per unit, with a minimum subscription of N5,000.

The first bond, a two-year FGN savings bond, will mature on March 12, 2027, and offer an interest rate of 16.635%. The second bond, with a three-year maturity, will be due on March 12, 2028, offering a slightly higher interest rate of 17.635%. These bonds are structured to pay interest quarterly, with principal repayment due on the maturity date. Investors can purchase the bonds in multiples of N1,000, up to a maximum subscription of N50 million.

In addition to their attractive rates, the bonds are listed on the Nigerian Exchange Limited, making them liquid assets that can be used in liquidity ratio calculations for banks. They are also recognized as eligible securities for trustees under the Trustee Investment Act. This offers added value for institutional investors looking for stable and secure investment opportunities.

This new offering follows the DMO’s successful raise of N1.63 trillion from the February 2025 FGN bond auction, significantly higher than the N669.94 billion raised in January. As part of its fiscal strategy, the government plans to borrow over N13 trillion this year to fund the 2025 budget. With these new savings bonds, the DMO continues to provide investors with diverse opportunities to contribute to national development while earning competitive returns.

SOURCE: GUARDIAN