DMO Opens August 2025 FGN Savings Bonds with Up to 15.4% Interest Amid Declining Rates

The Debt Management Office (DMO) has announced the opening of the August 2025 Federal Government of Nigeria (FGN) savings bond offer, presenting a two-year and three-year option with annual interest rates of 14.401% and 15.401%, respectively. The subscription period runs from August 4 to August 8, 2025. Investors can purchase units priced at N1,000 with a minimum investment of N5,000 and a maximum of N50 million, with interest paid quarterly on key settlement dates throughout the year.

These savings bonds are part of the government’s effort to deepen financial inclusion and give retail investors access to low-risk, government-backed securities. Although the interest rates offered in August are slightly lower than the July 2025 offerings—where the two-year bond offered 16.762%—they remain attractive in light of broader economic conditions. The interest rates reflect market adjustments influenced by monetary policy decisions by the Central Bank of Nigeria (CBN), which has held its policy rate steady at 27.5%.

In July 2025, the DMO experienced strong demand for FGN savings bonds, allotting N4.27 billion in total. The three-year bond was especially popular, receiving over N3.4 billion in subscriptions, compared to the two-year bond’s N853.8 million. This demonstrates continued investor appetite for government securities, particularly those with higher yields and long-term stability, even amid fluctuating macroeconomic indicators.

The CBN’s tight monetary stance, aimed at curbing inflation and stabilizing the naira, is contributing to rising foreign portfolio investor (FPI) interest in Nigerian bonds. By offering relatively high fixed yields, the FGN savings bonds continue to serve as a viable investment vehicle for both local and international participants, balancing risk and return within a volatile economic landscape.

Since its inception in 2017, the FGN Savings Bond Programme has served as a key tool for promoting financial inclusion, offering tax-exempt status under several Nigerian tax laws, and qualifying as liquid assets for banks. Listed on the Nigerian Exchange Limited (NGX), these bonds offer secondary market tradability, thereby improving investor flexibility and deepening the domestic debt market. With the current offering, the DMO seeks to maintain momentum and public confidence in government securities.

Source: Nairametrics