The Debt Management Office (DMO) has announced an allotment of N4.27 billion in the Federal Government of Nigeria (FGN) Savings Bonds for July 2025, reflecting a moderate increase from the N4.01 billion recorded in June.
According to details published on the DMO’s official website on Thursday, the July offering, which ran from July 7 to July 11, featured both 2-year and 3-year tenors, with lower coupon rates compared to the previous month.
The two-year bond, maturing July 16, 2027, was allotted at an interest rate of 15.762 per cent, with N853.82 million raised from 1,078 successful subscriptions. Meanwhile, the three-year bond, due July 16, 2028, was issued at a 16.762 per cent coupon rate and attracted N3.4 billion across 1,591 successful subscriptions.
The settlement date for both tenors was July 16, 2025, marking the official start of the investment cycle for successful subscribers. Quarterly coupon payments are scheduled for January 16, April 16, July 16, and October 16 each year.
This month’s interest rates mark a decline from June 2025, when the 3-year bond offered 17.121 per cent and the 2-year bond stood at 16.121 per cent. The downward adjustment is seen as a response to the Central Bank of Nigeria’s (CBN) decision to maintain the Monetary Policy Rate (MPR) at 27.5 per cent, stabilising interest rate expectations in the market.
The bonds were issued at N1,000 per unit, with a minimum subscription of N5,000, and subsequent subscriptions allowed in multiples of N1,000 up to a maximum of N50 million per investor.
Launched in 2017, the FGN Savings Bond programme was created to democratise access to government securities, deepen the domestic debt market, and promote financial inclusion among retail investors.
Recognised as approved securities under the Trustee Investment Act, and classified as government securities under both the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), these bonds enjoy tax-exempt status for pension funds and other eligible institutional investors.
In addition to offering predictable returns, the bonds are listed on the Nigerian Exchange Limited (NGX), enabling investors to trade on the secondary market, thereby boosting liquidity. They also qualify as liquid assets for meeting banks’ liquidity ratio requirements.
As traditional savings options struggle to keep pace with inflation, many Nigerians have turned to FGN Savings Bonds for safer and more stable investment returns, bolstering the appeal of these government-backed instruments in times of economic uncertainty.
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