The Debt Management Office (DMO) has officially launched the April 2025 edition of the Federal Government of Nigeria (FGN) Savings Bond, presenting attractive interest rates for retail investors seeking low-risk, high-yield investment opportunities.
This bond issuance offers two investment tenures:
- A 2-year FGN Savings Bond maturing on April 16, 2027, with an interest rate of 16.046% per annum
- A 3-year FGN Savings Bond maturing on April 16, 2028, offering a higher return of 17.046% per annum
According to details published by the DMO, the subscription window opens on Monday, April 7, 2025, and will close on Friday, April 11, 2025. The bond will be officially settled on April 16, 2025, which marks the first coupon (interest) payment date.
Key Features of the April 2025 FGN Savings Bond
- Issuer: Federal Government of Nigeria (via the Debt Management Office)
- Interest Payment Frequency: Quarterly (every January 16, April 16, July 16, and October 16)
- Minimum Subscription: ₦5,000
- Unit Price: ₦1,000 per unit, with further investments in multiples of ₦1,000
- Maximum Subscription Limit: ₦50,000,000
- Redemption: Full repayment of principal on the maturity date (bullet repayment)
The DMO emphasized that these savings bonds are eligible investments under the Trustee Investment Act, and they also qualify as government securities under both the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA). This provides tax advantages, especially for institutional investors such as pension funds, who are eligible for tax exemptions on the returns.
Additionally, the FGN Savings Bonds are listed on the Nigerian Exchange Limited (NGX), enabling investors to trade them on the secondary market if liquidity is needed before maturity. For banks, the bonds also qualify as liquid assets, making them useful in meeting regulatory liquidity ratio requirements.
Safe, Stable, and Government-Backed
One of the most appealing features of this offering is the full guarantee by the Federal Government of Nigeria. The bonds are backed by the country’s sovereign credit and secured against the nation’s general assets, making them one of the safest investment instruments available in the Nigerian market.
Rising Demand Amid Inflation Concerns
The April 2025 bond issuance is expected to attract strong interest from individual and institutional investors. In the current economic climate—characterized by rising inflation, currency fluctuations, and volatility in traditional investment options—many Nigerians are turning to government securities for their predictable returns and security.
With interest rates on this offering hitting as high as 17.046%, these savings bonds offer returns that outperform most commercial bank savings accounts and fixed deposit products, making them especially appealing to risk-averse investors.
How to Subscribe
Retail investors interested in subscribing to the FGN Savings Bond can approach any licensed stockbroker accredited by the Nigerian Exchange. Alternatively, more information and guidance are available directly through the Debt Management Office’s official website: www.dmo.gov.ng
The April 2025 FGN Savings Bond represents an ideal opportunity for Nigerians looking to grow their savings securely and tax-efficiently. With generous interest rates and the full backing of the Federal Government, these bonds offer a compelling alternative to traditional savings instruments, especially in a time of economic uncertainty.
