DMO Offers May FGN Savings Bonds at Higher 17.173% Yield

Samuel Mobolaji

The Debt Management Office (DMO), on behalf of the federal government, has opened the May 2025 offer for subscription to the FGN Savings Bond at a rate slightly higher than what it offered in April.

The May offering includes a 2-year bond due May 14, 2027, with a coupon rate of 16.173 per cent per annum, and a 3-year bond maturing on May 14, 2028, offering a higher return of 17.173 per cent per annum.

The offer period runs from yesterday, Monday, May 5, 2025, till Friday, May 9, while the settlement date is set for May 14. The May issuance follows a successful April outing, in which the DMO allotted a total of N4.34 billion in FGN Savings Bonds.

For the April 2025 offer, N1.14 billion was raised through the 2-year bond at a coupon rate of 16.046 per cent, while the 3-year bond attracted N3.2 billion with a 17.046 per cent coupon. The April offer recorded 862 and 1,293 successful subscriptions, respectively, underlining growing investor interest in these government-backed securities.

Backed by the full faith and credit of the federal government, these instruments are tax-exempt for qualifying investors, listed on the Nigerian Exchange, and recognised as liquid assets for banks. The bonds are sold at N1,000 per unit, with a minimum subscription of N5,000 and a maximum limit of N50 million.