The Debt Management Office (DMO) Nigeria has announced a new offer for subscription on behalf of the Federal Government of Nigeria for the Federal Government of Nigeria Savings Bond. The offer is made pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004.
According to the DMO, the offer includes a 2-Year FGN Savings Bond due October 15, 2027, at an interest rate of 14.062% per annum, and a 3-Year FGN Savings Bond due October 15, 2028, at an interest rate of 15.062% per annum. The opening date for the offer is October 6, 2025, while the closing date is October 10, 2025. The settlement date is scheduled for October 15, 2025, with coupon payment dates set for January 15, April 15, July 15, and October 15.
The DMO stated that the issuer of the bond is the Federal Government of Nigeria. The units of sale are ₦1,000 per unit, subject to a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, with a maximum subscription of ₦50,000,000. Interest payments are payable quarterly, and redemption will be a bullet repayment on the maturity date.
The office explained that the bond qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds and other investors. In addition, the bond will be listed on The Nigerian Exchange Limited and qualifies as a liquid asset for liquidity ratio calculation for banks.
“The FGN Savings Bond is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the DMO said.
Interested investors are advised to contact stockbroking firms appointed as distribution agents by the Debt Management Office. The list of distribution agents is available on the official website at www.dmo.gov.ng.