DMO launches September FGN savings bonds at 16.5%

The Debt Management Office (DMO) has launched the September 2025 edition of the Federal Government of Nigeria (FGN) Savings Bond, offering investors interest rates as high as 16.541 percent per annum — the highest level since the programmer’s introduction in 2017.

In a circular published on Monday, the DMO announced that the subscription window opened on September 1 and will close on Friday, September 5, 2025.

Settlement is scheduled for September 10, while coupon (interest) payments will be made quarterly on March 10, June 10, September 10, and December 10.

The issuance includes a two-year bond maturing on September 10, 2027, with an annual interest rate of 15.541 per cent, and a three-year bond maturing on September 10, 2028, with an annual interest rate of 16.541 per cent.

Both rates represent an increase from August’s offers of 14.401 per cent and 15.401 per cent respectively, reflecting the Central Bank of Nigeria’s (CBN) tight monetary stance.

The CBN, at its most recent Monetary Policy Committee meeting, retained the benchmark interest rate at 27.5 per cent as part of efforts to curb inflation and stabilise the naira.

The FGN Savings Bond programme was introduced in 2017 to broaden financial inclusion, deepen the domestic bond market, and provide small investors with secure, low-risk investment opportunities.

Units are priced at N1,000 each, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, up to a maximum of N50 million.

The bonds qualify as approved investments under the Trustee Investment Act and are recognised under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemption by pension funds and other institutional investors.

They are also listed on the Nigerian Exchange Limited (NGX), allowing trading in the secondary market and counting as liquid assets for banks.