DMO Opens July 2025 FGN Savings Bond Offer at 16.762% Interest Rate

The Debt Management Office (DMO) has commenced the sale of the July 2025 Federal Government of Nigeria (FGN) savings bonds, providing investors with interest rates of up to 16.762% per annum.

According to a circular released on the DMO’s official website on Monday, the subscription period began on July 7, 2025, and will close on Friday, July 11, 2025.

This month’s offering features two bond tenors. The first is a two-year bond maturing on July 16, 2027, with an annual return of 15.762%. The second is a three-year bond set to mature on July 16, 2028, carrying a yield of 16.762%.

Each bond unit is priced at N1,000. Investors are required to subscribe with a minimum of N5,000, while additional purchases must be made in multiples of N1,000, up to a maximum investment of N50 million.

Interest payments are scheduled quarterly on January 16, April 16, July 16, and October 16.

The savings bonds are backed by the Federal Government and are intended to encourage domestic participation in government securities, offering an investment option that supports both individual financial goals and broader economic objectives.

Compared to the previous month, interest rates have declined slightly. In June 2025, the three-year bond was offered at 17.121%, while the two-year bond was priced at 16.121%.

The lower rates may reflect the Central Bank of Nigeria’s (CBN) decision to maintain its benchmark policy rate at 27.5%—a move aimed at addressing inflation and maintaining currency stability. This policy has helped sustain interest in Nigerian bonds, especially among foreign portfolio investors seeking higher returns.

In the June 2025 auction, the government raised N4.01 billion through its savings bond issuance, slightly below the N4.28 billion collected in May.

A breakdown of the June allotment shows that N2.01 billion was raised through the two-year bond with 1,202 successful subscriptions, while the three-year bond attracted N1.995 billion across 1,321 investors.

The FGN Savings Bond Programme, introduced in 2017, aims to expand retail participation in the domestic debt market, increase financial inclusion, and provide secure investment instruments to the public.

These bonds are listed on the Nigerian Exchange Limited (NGX), enabling investors to trade them on the secondary market. They are also recognised under the Trustee Investment Act and qualify as approved government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them tax-exempt for qualified institutional investors, including pension funds.

Additionally, they count as liquid assets in the computation of banks’ liquidity ratios, further enhancing their attractiveness.

The FGN Savings Bonds continue to appeal to investors seeking low-risk, stable investment alternatives—especially in an environment of fluctuating interest rates and inflationary pressures.