DMO Offers June Savings Bonds with Returns up to 17.121%

Samuel Mobolaji

The Debt Management Office (DMO) has opened subscriptions for the June 2025 Federal Government of Nigeria (FGN) savings bonds, offering annual interest rates of up to 17.121 per cent.

The subscription window opened on Monday, 2 June 2025, and will close on Friday, 6 June 2025. According to the DMO, the two available instruments are: a two-year bond maturing on 11 June 2027 with a 16.121 per cent rate, and a three-year bond maturing on 11 June 2028 with a 17.121 per cent rate.

Each bond unit is priced at N1,000, with a minimum investment of N5,000 and further increments in multiples of N1,000, up to a maximum subscription of N50 million. Interest payments are scheduled quarterly.

Compared to May’s offer, the rates represent a marginal decline from 17.173 per cent and 16.173 per cent, respectively. This adjustment follows the Central Bank of Nigeria’s (CBN) decision to retain its policy rate at 27.5 per cent, reflecting the broader monetary strategy to stabilise inflation and the naira.

In May 2025, the federal government raised N4.28 billion through its savings bond issuance, slightly lower than the N4.34 billion secured in April. The May bond attracted 994 successful subscriptions totalling N840.43 million for the two-year tranche and 1,537 subscriptions worth N3.45 billion for the three-year tranche.

The new issuance is expected to attract both retail and institutional investors seeking stable, government-backed returns. Analysts noted growing demand for fixed-income securities, particularly amid easing global market tensions and improved foreign investor sentiment.

Meanwhile, the Nigerian Treasury Bills auction on 21 May 2025 recorded over N1.17 trillion in subscriptions, with the 364-day tenor attracting N1.05 trillion, well above the N350 billion initially offered.