The Debt Administration Workplace (DMO) has opened its newest subscription window for the FGN Financial savings Bond (FGNSB) for the 2-year and 3-year tenors being supplied this December 2025.
Beneath the brand new provide, the 2-year bond maturing on December 10, 2027, carries an rate of interest of 12.838% every year, whereas the 3-year bond due December 10, 2028, yields 13.838% every year.
That is contained in DMO’s round issued on Monday.
The subscription window opened on December 1, 2025, and can shut on December 5, 2025. Settlement is scheduled for December 10, 2025, with coupon (curiosity) funds to be made quarterly on March 10, June 10, September 10, and December 10 of every yr till maturity.
Decrease rates of interest in December
This represents a slight decline when in comparison with the November issuance, the place the 2-Yr FGN Financial savings Bond was supplied at 13.565% every year, whereas the 3-Yr FGN Financial savings Bond due November 12, 2028, carried a return of 14.565% every year.
At its 303rd Financial Coverage Committee in November, the Central Bank of Nigeria (CBN) voted to keep up all key coverage indicators, signalling the apex bank’s dedication to stabilizing costs and sustaining latest good points within the overseas trade market.
The committee retained the Financial Coverage Fee (MPR) at 27%.
Extra insights
The FGNSB stays focused primarily at retail buyers, with a minimal subscription quantity of N5,000, and gross sales carried out in items of N1,000. The utmost permissible subscription per investor is N50,000,000.
As with earlier points, these Financial savings Bonds are backed by the complete credit score of the Federal Authorities — making them among the many most secure funding devices out there to Nigerians.
Curiosity is usually paid quarterly, and principal is repaid in full at maturity. That ensures buyers take pleasure in predictable, secure returns and capital preservation with out the volatility related to equities or company debt.
In keeping with its options, the FGN Financial savings Bond affords a number of advantages, together with:
- Qualification as trustee securities underneath the Trustee Funding Act.
- Tax exemptions for Pension Funds and different eligible buyers underneath the Firm Earnings Tax Act (CITA) and Private Earnings Tax Act (PITA).
- Itemizing on the Nigerian Trade Restricted (NGX), which permits buyers to commerce the bonds and enhances liquidity.
- Qualification as liquid property for the computation of banks’ liquidity ratios.
What you need to know
The FGN Financial savings Bond program, first launched in 2017, is a part of the Federal Authorities’s strategic plan to deepen the home debt market, promote monetary inclusion, and allow small retail buyers to take part in authorities securities.
The comparatively excessive coupon charges are seen as a response to present inflationary developments and an incentive to draw extra retail participation.
Furthermore, the DMO’s constant issuance of the FGN Financial savings Bond demonstrates the administration’s confidence within the home capital market and its technique to finance budgetary wants with out over-reliance on exterior borrowing.
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