The Debt Management Office (DMO) has launched a fresh subscription window for two Federal Government Savings Bonds, giving Nigerians another opportunity to invest in government-backed securities with as little as N5,000. The bonds, priced at N1,000 per unit, are designed to encourage retail investors to grow their savings while earning attractive returns backed by the Federal Government.
According to a notice released by the DMO on Monday, investors can subscribe to a two-year savings bond maturing on August 12, 2028, offering an annual interest rate of 13.963 percent, or opt for a three-year bond due on August 12, 2029, with a higher annual return of 14.963 percent. The subscription window opened on August 3 and will remain available until August 7, while successful investors are expected to receive their bond allotments on August 12.
The agency also disclosed that interest payments will be made every quarter throughout the duration of the investment. Bondholders will receive their earnings on November 12, February 12, May 12, and August 12, providing a steady stream of income for investors seeking predictable returns in a relatively low-risk investment option.
To make the investment accessible to more Nigerians, the DMO fixed the minimum subscription at N5,000, with additional investments allowed in multiples of N1,000, up to a maximum investment of N50 million. This flexible structure allows both small-scale savers and larger investors to participate while benefiting from government-backed financial instruments.
Beyond the attractive interest rates, the DMO noted that the savings bonds are listed on the Nigerian Exchange (NGX), qualify as liquid assets for banks’ liquidity ratio calculations, and enjoy tax exemptions under the Companies Income Tax Act (CITA) and Personal Income Tax Act (PITA) for eligible investors, including pension funds. Backed by the full faith and credit of the Federal Government of Nigeria, the bonds remain one of the country’s safest investment options for individuals looking to preserve capital while earning consistent returns.
source: The cable
