The Debt Management Office (DMO) has successfully raised N4.27 billion through the Federal Government of Nigeria (FGN) Savings Bonds for July 2025. This reflects a moderate increase from the N4.01 billion garnered in June, indicating sustained interest from retail investors despite a slight reduction in coupon rates. The offer, which ran from July 7 to 11, featured two- and three-year tenors with varying interest rates.
For the two-year bond maturing in July 2027, the DMO raised N853.82 million from 1,078 subscriptions at a coupon rate of 15.762%. The three-year bond, due in July 2028, brought in the bulk of the funds — N3.4 billion from 1,591 successful subscriptions — at an interest rate of 16.762%. Both tenors have a settlement date of July 16, 2025, and will pay interest quarterly in January, April, July, and October.
Compared to June, the coupon rates on both bonds saw a slight decline; the previous month’s rates stood at 16.121% and 17.121% for the 2-year and 3-year bonds respectively. Analysts attribute this decrease to the Central Bank of Nigeria’s decision to maintain the Monetary Policy Rate (MPR) at 27.5%, which has contributed to market stability and moderated expectations for higher returns.
The bonds, priced at N1,000 per unit with a minimum subscription of N5,000, aim to make investment in government securities more accessible to everyday Nigerians. Subsequent investments are allowed in multiples of N1,000, up to a maximum of N50 million per investor. This flexible structure is part of a broader effort to deepen the domestic debt market and promote financial inclusion.
Since its launch in 2017, the FGN Savings Bond programme has provided retail investors with safe, government-backed investment opportunities. Listed on the Nigerian Exchange (NGX), the bonds offer tradability, tax exemptions for certain institutions, and classification as liquid assets for banks. As inflation erodes traditional savings, more Nigerians are turning to these bonds as a reliable source of returns in uncertain economic times.
Source: The Sun