The Federal Government, through the Debt Management Office, has opened a new window for retail investors with the launch of the Federal Government of Nigeria Savings Bond for May 2025.
The offer, which opened on May 5 and closes on May 9, 2025, includes a 2-year savings bond due May 14, 2027, with an interest rate of 16.173 per cent per annum, and a 3-year bond due May 14, 2028, at an interest rate of 17.173 per cent per annum.
According to the DMO, the bond qualifies as a liquid asset for banks and is backed by the full faith and credit of the Federal Government of Nigeria. The interest will be paid quarterly, with coupon payment dates set for August 14, November 14, February 14, and May 14.
The minimum subscription is N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50m. The settlement date is May 14, 2025.
The savings bond is listed on the Nigerian Exchange Limited and qualifies as a government security under the Company Income Tax Act and Personal Income Tax Act, making it tax-exempt for pension funds and other approved investors.
