The Debt Administration Workplace (DMO) has introduced the opening of the October 2025 issuance of the Federal Authorities of Nigeria (FGN) Financial savings Bonds, providing buyers engaging rates of interest of 14.062% and 15.062% every year for the 2-year and 3-year tenors, respectively.
Based on a DMO round on Monday, the supply for subscription opened on Monday, October 6, 2025, and can shut on Friday, October 10, 2025, whereas the settlement date is scheduled for October 15, 2025.
Coupon funds can be made quarterly — on January 15, April 15, July 15, and October 15 annually — all through the lifetime of the bond, the round added.
The DMO said that the 2-year FGN Financial savings Bond will mature on October 15, 2027, whereas the 3-year bond will mature on October 15, 2028.
The DMO emphasised that curiosity on the bonds is payable quarterly, whereas the principal can be repaid in full at maturity (bullet compensation).
The two-year bond rate of interest decreased to 14.062% in October 2025, from 15.541 per cent in September. Equally, the 3-year bond rate of interest fell to fifteen.062% every year in October from 16.541 per cent in September.
It will likely be recalled that on the Central Bank of Nigeria’s (CBN) Financial Coverage Committee assembly, the apex {bank} determined to cut back coverage charges to 27% in September.
The CBN’s technique to deal with inflation and stabilize the international trade market has made Nigerian bonds extra engaging, notably to international portfolio buyers (FPIs) on the lookout for greater yields.
Based on a press release printed on the DMO’s official web site, the bonds are being issued on behalf of the Federal Authorities of Nigeria in accordance with the Debt Administration Workplace (Institution) Act, 2003 and the Native Loans (Registered Inventory and Securities) Act, CAP L17, Legal guidelines of the Federation of Nigeria 2004.
Every bond unit is priced at N1,000, with a minimal subscription of N5,000 and extra investments in multiples of N1,000, permitting buyers to subscribe for as much as N50 million.
The FGN Financial savings Bond qualifies as an accepted funding underneath the Trustee Funding Act and can also be recognised as a authorities safety underneath each the Firm Revenue Tax Act (CITA) and the Private Revenue Tax Act (PITA). This makes it eligible for tax exemption by pension funds and different certified institutional buyers.
Moreover, the bonds are listed on the Nigerian Alternate Restricted (NGX), offering buyers with the choice to commerce them on the secondary market and enhancing total liquidity.
The FGN Financial savings Bond programme, launched in 2017, was designed to deepen the home bond market, promote {financial} inclusion, and supply retail buyers entry to safe and low-risk authorities securities.
