The Federal Government of Nigeria (FGN), through the Debt Management Office (DMO), has opened subscriptions for its September 2025 FGN Savings Bonds, offering investors attractive annual yields of up to 16.541%.
According to the circular released on Monday, the subscription window commenced immediately and will close on Friday, September 5, 2025, with settlement scheduled for September 10, 2025.
Coupon payments will be made quarterly on March 10, June 10, September 10, and December 10, and proceeds will be paid directly to investors’ accounts.
The DMO revealed that investors can subscribe to two categories of the bonds:
Two-Year Bond: Maturing on September 10, 2027, with an annual interest rate of 15.541%.
Three-Year Bond: Maturing on September 10, 2028, with an annual interest rate of 16.541%.
This marks an increase from the previous month when the two-year bond offered 14.401% and the three-year bond yielded 15.401%.
The September offering reflects the Federal Government’s adjustment to rising interest rates and its bid to attract more retail investors amid ongoing economic reforms.
Each bond unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional subscriptions in multiples of ₦1,000. Retail investors can subscribe up to a maximum of ₦50 million.
Launched in March 2017, the FGN Savings Bond programme was designed to deepen Nigeria’s domestic bond market, encourage financial inclusion, and provide secure investment opportunities for ordinary Nigerians.
Unlike Treasury Bills or Eurobonds, the savings bond is targeted primarily at retail investors—teachers, traders, civil servants, and small business owners—who are often excluded from the traditional bond market.
The bonds also serve as a tool for government financing, helping to bridge fiscal gaps while reducing dependence on external borrowing.
By attracting funds domestically, Nigeria can lower its exposure to exchange rate risks and foreign debt vulnerabilities.
According to the DMO, the September bonds are backed by the “full faith and credit” of the Federal Government of Nigeria and charged upon the general assets of the nation, making them one of the safest investment vehicles available in the market.
Additional benefits include:
Tax Exemptions: FGN Savings Bonds qualify as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), ensuring pension funds and certain investors enjoy tax incentives.
Trustee-Friendly: They qualify as securities in which trustees can invest under the Trustee Investment Act.
Liquidity Advantage: They are listed on the Nigerian Exchange Limited (NGX), making them tradable and a liquid asset for banks’ liquidity ratio requirements.
Financial analysts believe the September offer is particularly attractive given Nigeria’s rising inflation, currently hovering above 25%.
With yields now exceeding 16%, the bonds provide retail investors with a hedge against inflation while offering guaranteed returns.
Investment consultant, Dr. Nneka Obiechina, noted that savings bonds are “a gateway for Nigerians who ordinarily cannot afford high-ticket investments in government securities.
At these rates, they are far more rewarding than many fixed deposit accounts in commercial banks.”
However, analysts caution that while the yields are appealing, investors must consider inflation-adjusted returns. A 16.541% yield, though high, could still underperform if inflation continues to climb above 20% in coming quarters.
By raising funds through retail savings bonds, the Federal Government hopes to channel resources into infrastructure, health, education, and debt servicing.
The bonds also foster a culture of savings and investment among Nigerians at a time when consumer spending is under strain from currency depreciation and subsidy removals.
The latest offering comes as Nigeria continues its economic reforms, including efforts to stabilize the naira, strengthen revenue mobilization, and deepen financial markets.
Industry watchers believe consistent issuance of savings bonds will help build public trust and encourage mass participation in the financial system.
The September 2025 FGN Savings Bonds present a low-risk, high-yield investment opportunity for Nigerians seeking stable returns.
With guaranteed quarterly payments, tax benefits, and government backing, the bonds reaffirm the administration’s commitment to promoting financial inclusion while addressing its funding needs.
As subscriptions close on September 5, 2025, analysts advise investors to act promptly, particularly those looking for safer alternatives in an uncertain economic climate.