Subscription for the September 2025 edition of the FGN savings bond has commenced and the Debt Management Office (DMO), which is selling the debt instrument, is offering the 2-year tenor for 15.541 per cent per annum and the 3-year maturity at 16.541 per cent per annum.
In a circular issued on Monday, the agency said the two-year FGN savings bond is due for maturity on September 10, 2027, while the three-year note matures on September 10, 2028.
The retail bond is targeted at low-income earners and can be purchased for as low as N5,000, with N1,000 sold per unit. The maximum subscription is N50 million.
Interested investors can buy the bonds through any of the authorised stockbrokers before the closing date, which is Friday, September 5, 2025.
The interest on the investment is paid by the federal government every quarter, and for this exercise, it would be paid every December 10, March 10, June 10, and September 10 until maturity.
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.
It qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst other investors, meaning it is tax-free.
The debt instrument also qualifies as a liquid asset for liquidity ratio calculation for banks and will be listed on the Nigerian Exchange (NGX) Limited for secondary trading.