ECONOMY
DMO Offers Two FGN Savings Bonds at N1,000/Unit for Subscription

The Debt Management Office (DMO) has opened subscriptions for two new Federal Government of Nigeria (FGN) savings bonds at N1,000 per unit, targeting retail investors amid weakening demand for short-term bonds.
The first is a two-year bond maturing on June 11, 2027, offering an annual interest rate of 16.121 percent. The second is a three-year bond maturing on June 11, 2028, with a higher yield of 17.121 percent per annum.
Despite investor apathy for shorter-term instruments, the DMO is proceeding with the offer to raise funds for the government, ensuring quarterly interest payouts and full principal repayment at maturity. The offer opened on June 2 and will close on June 6, with settlement scheduled for June 11. Coupon payments will be made quarterly—on September 11, December 11, March 11, and June 11.
Subscriptions start at a minimum of N5,000 and must be in multiples of N1,000, capped at N50 million per investor. The DMO emphasized that the bonds are backed by the full faith and credit of the federal government, qualifying as trustee investments and enjoying tax exemptions under both the Company Income Tax Act and the Personal Income Tax Act.
The bonds are also listed on the Nigerian Exchange Limited (NGX) and count as liquid assets for banks’ liquidity ratio calculations.
The announcement comes after a poor performance at the May 2025 FGN bond auction, where the DMO raised only N295.98 billion of its N300 billion target. Demand for five-year bonds maturing in April 2029 was particularly weak, with an 83 percent undersubscription rate.
Still, the federal government continues to rely on the domestic bond market to fund its spending. In the first quarter of 2025 alone, it borrowed N1.94 trillion from bond investors as part of efforts to finance a N13 trillion budget deficit.
Discover more from Naijanewstoday
Subscribe to get the latest posts sent to your email.
-
NEWS5 days ago
FG Cuts Dialysis Cost In Federal Hospitals From ₦50,000 To ₦12,000
-
NEWS3 days ago
Ebonyi Man Plans Lagos-Abakaliki Trek to Honour Gov. Nwifuru’s Peace Efforts
-
POLITICS6 days ago
Peter Obi Tells Nigerians: Get Your PVC, Reject Criminals in Disguise
-
NEWS5 days ago
Ebonyi Coordinator Distributes Motorcycles, Lauds Governor’s Grassroots Development Agenda
-
ENTERTAINMENT6 days ago
Jim Iyke Says Single Mothers Cannot Raise Boys Into “Proper Men”
-
FACT-CHECKS/INVESTIGATION7 days ago
EFCC Recovers N5bn, $10m in Refinery Maintenance Fraud
-
NEWS5 days ago
Lagos State Declares August 20 Work-Free for Public Servants for Isese Day
-
SPORTS5 days ago
Tinubu Arrives in Japan to Boost Bilateral Ties
-
NEWS5 days ago
FCT Minister Denies Awarding N5 Billion Contract to Local Contractors
-
INSIDE NYSC7 days ago
NYSC Lagos Holds Cultural Carnival to Celebrate Unity in Diversity
-
NEWS4 days ago
Wike Says Amaechi’s 2027 Presidential Ambition Is Dead on Arrival
-
ENTERTAINMENT5 days ago
VeryDarkMan Leads Protest In Auchi, Blocks Dangote Trucks Over Victims’ Compensation