DMO announces subscription window for January FGN savings bonds, offers up to 18.24% 

This initiative invites both individual and institutional investors to participate from January 13 to January 17, 2025.

The bond offering for January 2025 features two options: a two-year savings bond maturing on January 22, 2027, with an interest rate of 17.235%, and a three-year bond maturing on January 22, 2028, offering 18.235%.  

Each bond unit is priced at N1,000, with a minimum subscription requirement of N5,000. Investors can increase their investment in multiples of N1,000, up to a maximum limit of N50 million. 

The settlement date for successful subscriptions is January 22, 2025, with the first quarterly coupon payment scheduled for April 22, 2025, followed by payments on July 22, October 22, and January 22 annually.

This offering provides Nigerians with an opportunity to invest in FGN Savings Bonds, promoting secure and consistent returns.

The Federal Government of Nigeria’s (FGN) three-year savings bond for 2025 offers an interest rate of 18.235%, a substantial increase from the 12.033% rate recorded in January 2024—representing a sharp rise of 6.20 percentage points in just one year.

This adjustment reflects the Central Bank of Nigeria’s (CBN) consistent efforts to tighten monetary policy since February 2024.

The increased appeal of longer-term securities comes amid Nigeria’s rising interest rate environment.

CBN’s efforts to tackle inflation and stabilize the foreign exchange market have significantly increased the appeal of Nigerian bonds.

Higher yields have drawn interest from foreign portfolio investors (FPIs) seeking competitive returns, further solidifying Nigeria’s position as a viable destination for bond investments.

In a recent auction held on December 16, 2024, the Federal Government of Nigeria offered two bonds: the 19.30% FGN APR 2029 and the 18.50% FGN FEB 2031.

The 5-year bond attracted a total subscription of N67.457 billion from 44 bids, with 30 bids successfully awarded.

Conversely, the 7-year bond received a robust subscription of N211.363 billion, with a remarkable 116 bids submitted.

In total, the government raised N211.144 billion from this auction, combining the amounts from both bonds and reflecting strong investor interest in Nigerian government securities amidst dynamic economic conditions.