FGN Savings Bond: DMO Opens October Offer at 14.06% and 15.06% to Attract Retail Investors
The Debt Management Office (DMO) has opened subscriptions for the October 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, offering investors attractive interest rates of 14.06% and 15.06% per annum for the 2-year and 3-year tenors, respectively. According to the DMO’s circular released on Monday, the offer runs from October 6 to October 10, 2025, with settlement scheduled for October 15, 2025. The bonds, which aim to encourage financial inclusion among Nigerians, pay quarterly interest and guarantee full principal repayment at maturity.
The DMO disclosed that the 2-year FGN Savings Bond will mature on October 15, 2027, while the 3-year bond will mature on October 15, 2028. Coupon payments will be made quarterly — on January 15, April 15, July 15, and October 15 — providing investors with regular income streams. Each unit of the bond is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000, up to a maximum of ₦50 million per investor.
However, the DMO noted a decline in interest rates compared to the previous month. The 2-year bond rate dropped from 15.54% in September to 14.06%, while the 3-year bond fell from 16.54% to 15.06%. This reduction follows the Central Bank of Nigeria’s (CBN) decision in September to cut its monetary policy rate to 27%, part of broader measures to curb inflation and stabilize the foreign exchange market. Analysts believe the move could make Nigerian government securities even more appealing to both local and foreign investors seeking safer returns.
According to the DMO, the FGN Savings Bonds are issued on behalf of the Federal Government under the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP L17. The instruments qualify as approved investments under the Trustee Investment Act and are recognized as government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemptions by pension funds and institutional investors.
Since its introduction in 2017, the FGN Savings Bond programme has helped deepen Nigeria’s domestic bond market and promote financial literacy among citizens. It also provides retail investors access to secure, low-risk government securities with stable returns. The bonds are listed on the Nigerian Exchange Limited (NGX), enabling secondary market trading and liquidity for holders. With competitive yields and flexible entry points, the October 2025 offer reaffirms the government’s commitment to broadening investment participation across Nigeria.
source: Nairametrics