FGN Savings Bonds Open for July 2025 with Up to 16.762% Returns

The Debt Management Office (DMO) has launched the July 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bond, offering attractive annual interest rates of up to 16.762% to retail investors.

The subscription window opened on Monday, July 7, 2025, and will close on Friday, July 11, 2025, providing Nigerians another opportunity to invest in secure, government-backed securities.

Two Bond Options for Investors

The July issuance includes two tenor options:

• A 2-year bond maturing July 16, 2027, with an interest rate of 15.762% per annum
• A 3-year bond maturing July 16, 2028, offering 16.762% per annum

Each bond unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000. Investors can subscribe for up to ₦50 million, making the bond accessible to both small-scale savers and high-net-worth individuals.

The interest is paid quarterly, with settlement dates on January 16, April 16, July 16, and October 16 of each year.

Although the interest rates are slightly lower than June’s rates (which were 17.121% for the 3-year and 16.121% for the 2-year bond), the offering remains competitive. The reduction reflects the Central Bank of Nigeria’s (CBN) decision to maintain its Monetary Policy Rate (MPR) at 27.5%, aiming to tame inflation and stabilize the naira.

This macroeconomic strategy has continued to make Nigerian bonds appealing to foreign portfolio investors, while also providing retail investors with steady returns amid economic uncertainties.

The June 2025 issuance saw a robust subscription, with the Federal Government raising ₦4.01 billion:

• ₦2.01 billion was allocated to the 2-year bond with 1,202 successful subscriptions
• ₦1.995 billion went to the 3-year bond, with 1,321 successful subscriptions

While slightly below May’s ₦4.28 billion, the figures reflect sustained interest in long-term, low-risk investments from the public.

What This Means for Retail Investors and MSMEs

The FGN Savings Bond program, introduced in 2017, was designed to deepen Nigeria’s domestic capital market, promote financial inclusion, and give everyday Nigerians access to secure and tradable investment options.

The bonds are:

• Listed on the Nigerian Exchange (NGX), enabling trading on the secondary market
• Recognized as government securities under CITA and PITA, making them tax-exempt for pension funds and other qualified institutional investors
• Eligible under the Trustee Investment Act, and counted as liquid assets for banks’ liquidity ratio computations

For MSMEs and small investors in Africa, this presents a low-risk, high-yield investment opportunity, particularly in a time when traditional savings products offer volatile or eroded returns due to inflation.

“These government-backed bonds offer retail investors a predictable and secure way to grow their funds while contributing to national development,” said a DMO spokesperson.

How to Subscribe

Interested investors can subscribe through stockbrokers accredited by the Nigerian Exchange or visit the DMO website for more details. Subscriptions are expected to close by Friday, July 11, 2025.

As Nigeria continues to work toward economic recovery and financial market deepening, instruments like the FGN Savings Bond remain a vital bridge between national development financing and individual wealth growth.