FG offers two FGN Savings Bonds for July with interest rates of up to 15.716%

The Federal Government, through the Debt Management Office (DMO), has announced the opening of subscriptions for two Federal Government of Nigeria (FGN) Savings Bonds for July.

According to a statement issued by the DMO, the first offer is a two-year FGN Savings Bond due on 15 July 2028, with an interest rate of 14.716 per cent per annum.

The second offer is a three-year FGN Savings Bond due on 15 July 2029, offering an interest rate of 15.716 per cent per annum.

The DMO stated “Closing date is July 10, settlement date is July 15, and coupon payment dates are October 15, January 15, April 15 and July 15.

“They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly, and bullet repayment is on the maturity date.”

The agency explained that FGN Savings Bonds, like other Federal Government securities, are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria.

According to the DMO, the bonds also qualify as eligible investment instruments under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for exemption for pension funds, amongst other investors.

“They are listed on the Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation for banks,” the statement added.

The FGN Savings Bond is a retail debt instrument introduced by the DMO on behalf of the Federal Government to encourage wider participation in the domestic bond market.

Designed primarily for retail investors, the instrument enables low- and middle-income earners to invest in government securities with relatively small amounts, while promoting a stronger savings culture across the country.

Unlike conventional FGN bonds, which generally require significantly higher minimum investments and are predominantly purchased by institutional investors, the FGN Savings Bond offers individuals an accessible opportunity to invest in government-backed securities.