FGN Opens July Savings Bonds with Up to 16.76% Interest Amid Stable Monetary Climate

The Debt Management Office (DMO) has commenced the subscription window for the July 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, featuring competitive interest rates. Investors can choose between a two-year bond yielding 15.762% and a three-year bond offering 16.762% per annum. The subscription period runs until Friday, July 11, 2025, with a minimum investment of ₦5,000 and a maximum cap of ₦50 million per investor. Interest will be paid quarterly throughout the lifespan of the bonds.

These savings bonds, first introduced in 2017, form part of the government’s broader strategy to deepen Nigeria’s domestic debt market and enhance financial inclusion. By targeting retail investors, the bond programme aims to offer a secure and accessible alternative to traditional savings options, while also providing the government with a steady domestic borrowing source.

Although this month’s interest rates are slightly lower than June’s offerings—which peaked at 17.121%—they remain attractive due to Nigeria’s relatively high real yields and a stable monetary policy environment. The Central Bank of Nigeria (CBN) has held its benchmark interest rate at 27.5%, helping to curb inflation and support the naira, which in turn boosts investor confidence in local debt instruments.

In June 2025, the government raised ₦4.01 billion from the bond auction, a slight decrease from May’s ₦4.28 billion. Data from the DMO shows the 2-year bond attracted ₦2.01 billion from 1,202 successful subscriptions, while the 3-year bond brought in ₦1.995 billion from 1,321 investors. This consistent demand indicates growing investor trust in the savings bond programme.

The bonds also come with multiple regulatory advantages: they are recognised under the Trustee Investment Act, qualify for tax exemptions under CITA and PITA, and are listed on the Nigerian Exchange Limited (NGX) for enhanced liquidity. As inflation concerns persist, FGN Savings Bonds continue to appeal to retail investors seeking stable and tax-friendly returns.

Source: The Sun