The Federal Authorities of Nigeria, by way of the Debt Administration Workplace (DMO), has launched its Might 2025 issuance of the Federal Authorities of Nigeria (FGN) Financial savings Bond, providing engaging yields to retail traders amid rising inflation and debt servicing considerations.
The provide, which opened on Might 5 and can shut on Might 9, consists of two tranches: a 2-year bond maturing Might 14, 2027, at 16.173% every year, and a 3-year bond maturing Might 14, 2028, with a yield of 17.173% every year. Curiosity funds are scheduled quarterly—on August 14, November 14, February 14, and Might 14.
The DMO confirmed that the bonds are totally backed by the sovereign credit score of the Federal Authorities and qualify as liquid property for banks.
They’re additionally listed on the Nigerian Trade Restricted, enhancing secondary market visibility and tradability.
Subscription begins at a minimal of ₦5,000 and will increase in multiples of ₦1,000, as much as a cap of ₦50 million per investor. The settlement date is fastened for Might 14, 2025.
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The financial savings bond devices proceed to function an accessible entry level for retail traders searching for regular returns in a unstable macroeconomic surroundings.
The tax-exempt standing for pension funds and different authorized traders below the Firm Revenue Tax Act and Private Revenue Tax Act additional boosts their attraction.
This issuance follows the DMO’s March 2025 bond public sale, which recorded ₦271.2 billion in allotments, reflecting continued investor urge for food for presidency securities regardless of Nigeria’s rising public debt, now estimated at ₦144.67 trillion.
Analysts recommend that the engaging rates of interest supplied within the Might financial savings bond may assist curb inflationary pressures by encouraging home financial savings and decreasing extra liquidity.
