FEDERAL GOVERNMENT ANNOUNCES UP TO 16.54% YIELD ON SEPTEMBER SAVINGS BONDS
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BY OWOLABI OLUWADARA
The Federal Government, via the Debt Management Office, is presenting investors with annual returns of up to 16.541% on its September 2025 Federal Government of Nigeria Savings Bonds.
The DMO, in a notification on its website on Monday, proclaimed that the subscription period commences immediately and will conclude on Friday, September 5, 2025, with settlement anticipated on September 10, 2025.
Interest payments will be disbursed quarterly on March 10, June 10, September 10, and December 10, and will be transferred directly to investors.
The DMO provides investors with two categories of subscription for the Federal Government Savings Bond. The first is a two-year bond maturing on September 10, 2027, which offers an annual interest rate of 15.541%.
The second is a three-year bond, set to mature on September 10, 2028, featuring a higher annual interest rate of 16.541%.
The interest rate for the two-year bond increased to 15.541% in September 2025, up from 14.401% in August.
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Likewise, the three-year bond witnessed a rise to 16.541% in September, compared to 15.401% in the preceding month.
The FGN Savings Bond program, initiated in 2017, seeks to enhance the domestic bond market, foster financial inclusion, and provide retail investors with access to secure, low-risk government securities.
Each bond unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and subsequent subscriptions in increments of ₦1,000. Individual investors may subscribe up to ₦50 million.
Regarding the status of FGN Savings Bonds, the DMO stated that they “qualify as securities in which trustees may invest under the Trustee Investment Act; qualify as Government securities as defined by the Company Income Tax Act (“CITA”) and the Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, among other investors.
“Listed on The Nigerian Exchange Limited and qualifies as a liquid asset for liquidity ratio assessment for banks. ”
The office emphasized that the bond is “supported by the full faith and credit of the Federal Government of Nigeria and secured against the general assets of Nigeria. ”
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