DMO Opens July FGN Savings Bond Offer with Up to 16.762% Interest Despite Slight Rate Drop

The Debt Management Office (DMO) has announced the opening of subscriptions for the July 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds. The subscription period runs from Monday, July 7 to Friday, July 11, 2025. This month’s offering features two bond tenors: a two-year bond maturing in July 2027 at a 15.762% annual interest rate, and a three-year bond maturing in July 2028, offering a return of 16.762% per annum.

Priced at ₦1,000 per unit with a minimum subscription of ₦5,000 and increments in multiples of ₦1,000, the FGN Savings Bonds are designed to be accessible to retail investors. The maximum subscription per individual is set at ₦50 million. Interest payments are scheduled quarterly on January 16, April 16, July 16, and October 16, offering predictable returns for investors seeking low-risk government-backed securities.

Despite the relatively attractive returns, the interest rates have seen a slight dip from the previous month. In June 2025, the 3-year bond offered 17.121%, while the 2-year bond returned 16.121%. The rate drop is likely a response to the Central Bank of Nigeria (CBN) maintaining its benchmark policy rate at 27.5% as part of its ongoing strategy to stabilize inflation and foreign exchange dynamics.

Data from June 2025 showed robust interest in the FGN Savings Bond programme, with the government raising ₦4.01 billion from the monthly auction. The 2-year bond received ₦2.01 billion across 1,202 successful subscriptions, while the 3-year bond attracted ₦1.995 billion from 1,321 investors. Although slightly lower than May’s ₦4.28 billion, the figures reflect consistent demand for long-term, stable investment vehicles.

Launched in 2017, the FGN Savings Bond initiative is designed to boost financial inclusion, deepen the domestic bond market, and provide safe investment alternatives for everyday Nigerians. These bonds qualify for tax exemptions under relevant laws and can be traded on the Nigerian Exchange (NGX), enhancing liquidity. As economic uncertainty persists, these government securities continue to offer a secure option for both retail and institutional investors.

Source: The sun