FGN Savings Bonds Attract over N4.28bn in May Auction

Samuel Mobolaji

The Debt Management Office (DMO) has announced that a total of N4.28 billion was allotted in the May 2025 Federal Government of Nigeria (FGN) Savings Bonds auction.

According to data published on the DMO’s website, the subscription window ran from May 5 to 9, with allotments made across two bond tenors: a 2-year bond maturing on May 14, 2027, and a 3-year bond maturing on May 14, 2028.

Both bonds will settle on May 14, 2025, with quarterly interest payments scheduled for February 14, May 14, August 14, and November 14 throughout the bond period.

The May figure is slightly below the N4.34 billion raised in April.

The 2-year bond, offered at an interest rate of 16.173 per cent, recorded an allotment of N840.43 million from 994 successful subscriptions. The 3-year bond, with a higher yield of 17.173 per cent, attracted N3.45 billion from 1,537 subscriptions.

The savings bonds, issued at N1,000 per unit with a minimum entry of N5,000 and capped at N50 million, continue to appeal to retail investors seeking safe and predictable returns.

Launched in 2017, the FGN Savings Bond programme aims to broaden financial inclusion and strengthen domestic participation in government securities. The bonds qualify for tax exemptions under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), and are recognised under the Trustee Investment Act.

They are listed on the Nigerian Exchange Limited (NGX), providing an option for secondary market trading and allowing investors to access liquidity when needed. The instruments also meet regulatory requirements as liquid assets for banks’ liquidity ratio calculations.

In a separate issuance, the DMO allotted N397.9 billion in April 2025 through two re-openings of the 5-year FGN APR 2029 bond and the 9-year FGN MAY 2033 bond, reflecting strong institutional interest in longer-term securities.