 has allotted N4.3 billion in Federal Government Savings Bonds for May 2025){kind=link}
The Debt Management Office (DMO) has successfully allotted a total of N4.3 billion worth of Federal Government Savings Bonds (FGSB) in its latest May 2025 subscription, reaffirming the Nigerian government’s commitment to encouraging savings and providing investors with stable, fixed-income opportunities.
The subscription window, which ran from May 5 to May 9, 2025, attracted strong interest from retail and institutional investors alike, with the settlement date set for May 14, 2025.
The May offer featured two tenor options tailored to meet different investment horizons: a two-year bond maturing on May 14, 2027, offering an attractive coupon rate of 16.173 percent per annum, and a three-year bond maturing on May 14, 2028, with a higher coupon rate of 17.173 percent per annum. Investors in both bonds receive quarterly coupon payments, scheduled on August 14, November 14, February 14, and May 14 every year.
Out of the total allotment, N840.434 million was allocated to the two-year bond across 994 successful subscriptions. Meanwhile, the longer three-year bond drew a larger allotment of N3.466 billion, with 1,537 successful subscriptions recorded. This strong uptake highlights investor confidence in longer-term government securities amid the current economic landscape.
The FGSB remains one of the most secure investment instruments available to Nigerians, backed by the full faith and credit of the Federal Government. These bonds serve as an important vehicle to mobilize domestic savings, encourage financial discipline, and provide a reliable source of income for investors.
The bonds also support government efforts to diversify borrowing sources away from traditional bank loans and provide an avenue for Nigerians to participate directly in national development projects.
The allotment comes amid a broader trend of increased government borrowing through the capital markets. Data from the Debt Management Office shows that Nigeria borrowed a total of N1.94 trillion from bond investors in the first quarter of 2025 alone. This surge reflects the government’s ongoing efforts to finance budgetary needs while managing fiscal deficits prudently.
Furthermore, the DMO has announced plans to issue Series Seven Sovereign Sukuk bonds, targeting N300 billion, a move expected to broaden investor participation by tapping into the growing Islamic finance market.
The Federal Government Savings Bond initiative is part of the government’s strategy to deepen financial inclusion and encourage retail investors to channel their savings into formal investment products. With competitive fixed returns, these bonds provide an accessible option for average Nigerians seeking to grow their wealth safely.
Efforts to simplify subscription processes through digital platforms have also boosted retail participation, making it easier for Nigerians nationwide to invest without intermediaries.
Analysts say that with the prevailing economic uncertainties and inflationary pressures, fixed-income instruments like the FGSB offer a stable and predictable income stream for cautious investors.
Financial experts advise potential investors to assess their investment goals and risk appetite carefully while considering savings bonds as part of a diversified portfolio.
The Debt Management Office’s recent successful allotment of N4.3 billion Federal Government Savings Bonds demonstrates growing investor confidence in government securities. With attractive coupon rates, secure backing, and a range of maturity options, these bonds continue to serve as a cornerstone for Nigeria’s efforts to mobilize domestic resources and encourage a culture of savings and investment among its citizens.
As the government rolls out further bond issuances and innovative debt instruments, the outlook for Nigeria’s capital market appears promising, providing vital funding for national development while offering Nigerians reliable investment avenues.