THE Debt Management Office (DMO) has launched the June 2025 Federal Government of Nigeria (FGN) savings bonds, offering investors attractive interest rates of up to 17.121 per cent per annum.
The subscription window opened on Monday, June 2, and will close on Friday, June 6.
The DMO announced this on its social media handle on Monday.
“We welcome you to this month of June with the: 2-Year FGN Savings Bond due June 11, 2027, at 16.121 per cent p.a. and; 3-year FGN Savings Bond due June 11, 2028, at 17.121 per cent p.a. Offer opens tomorrow and closes June 6, 2025. Kindly contact your stockbroker to invest, ”DMO said.
The ICIR reports that this month’s bond offering includes two options: a two-year savings bond maturing on June 11, 2027, with an interest rate of 16.121 per cent, and a three-year bond maturing on June 11, 2028, offering 17.121 per cent.
The settlement date for successful subscriptions is set for September 11, December 11, March 11, and June 11 each year.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing investors to subscribe for up to N50 million.
This offering gives Nigerians the opportunity to invest in government-backed bonds, contributing to personal and national financial stability.
The ICIR reports that the 17.121 per cent interest rate represents a slight decrease from May, which was set at 17.173 per cent for the 3-year bond, and the 16.121 per cent represents a slight decrease from the 16.173 per cent offered in May.
Analysts also remarked that the slight downward adjustment is likely driven by the Central Bank of Nigeria’s (CBN) decision to retain policy rates at 27.5 per cent in recent months.
“The CBN interest rate and monetary policy committee meeting rate hold has also influenced the slight adjustment of the saving bond’s rate. Lots of consideration come into play in this type of economic matters,” an economist, Kingsley Obiakor, told The ICIR.
It would be noted that the apex bank’s strategy to address inflation and stabilise the foreign exchange market has made Nigerian bonds more attractive, particularly to foreign portfolio investors (FPIs) looking for higher yields.
In May, the Federal Government raised N4.28 billion through its FGN savings bond auction, reflecting strong demand for long-term securities.
The May 2025 allotment is slightly lower than the N4.34 billion recorded in April 2025.
The DMO revealed that the two-year FGN Savings Bond was offered at an interest rate of 16.173 per cent and recorded a total allotment of N840.43 million across 994 successful subscriptions.
Meanwhile, the three-year FGN Savings Bond, offered at 17.173 per cent, attracted a total allotment of N3.45 billion from 1,537 successful subscriptions.
In May, The ICIR reported that DMO has launched a fresh N300 billion Sukuk bond to finance the construction and rehabilitation of roads and bridges across the six geopolitical zones, in a move that will further swell the country’s public debt, now nearing N145 trillion.
The DMO announced this on Monday, May 12, in the 2024 FGN Sukuk offer for subscription.
In Nigeria, a Sukuk fund, or Sukuk bond, is a type of Islamic investment certificate that represents an ownership interest in a specific asset or a pool of assets, rather than a debt obligation like a conventional bond.
It’s a hybrid instrument that combines equity and debt features, where investors receive income from the use of the underlying asset. The Federal Government of Nigeria, for example, uses Sukuk to fund infrastructure projects like roads.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.