The Debt Management Office (DMO) has announced the commencement of the October 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds, offering investors interest rates of 14.062 per cent and 15.062 per cent per annum for the 2-year and 3-year tenors, respectively.
In a circular released on Monday, the DMO stated that the offer for subscription opened on October 6, 2025, and will close on Friday, October 10, 2025, with the settlement date fixed for October 15, 2025.
The Savings Bond programme, introduced to deepen the domestic debt market and promote financial inclusion, provides retail investors with an opportunity to earn steady returns while supporting government funding for infrastructure and development projects.
According to the DMO, interest payments will be made quarterly, on January 15, April 15, July 15, and October 15 each year, throughout the life of the bond, while principal repayment will be made in full at maturity under a bullet repayment arrangement.
The 2-year FGN Savings Bond will mature on October 15, 2027, and the 3-year bond on October 15, 2028.
The DMO further disclosed that the interest rates for the October offer reflect a slight moderation compared to the previous month. The 2-year bond rate dropped to 14.062 per cent from 15.541 per cent in September, while the 3-year bond declined to 15.062 per cent from 16.541 per cent.
Analysts attribute the adjustment to recent monetary policy developments by the Central Bank of Nigeria (CBN). At its September Monetary Policy Committee (MPC) meeting, the apex bank reduced the benchmark Monetary Policy Rate (MPR) to 27 per cent, signalling a cautious easing stance aimed at stimulating credit growth and supporting economic activity.
The moderation in FGN Savings Bond yields aligns with the CBN’s broader strategy to curb inflationary pressures, stabilise the exchange rate, and sustain investor confidence in Nigeria’s debt market.
Despite the rate cuts, analysts note that Nigerian sovereign instruments remain attractive, particularly to foreign portfolio investors (FPIs) seeking higher real returns in emerging markets.
The FGN Savings Bonds, introduced in 2017, are issued monthly and targeted at retail investors, including individuals and small businesses, with a minimum subscription of ₦5,000 and multiples of ₦1,000 thereafter, up to a maximum of ₦50m.
The bonds are listed on the Nigerian Exchange Limited (NGX), enabling investors to trade them in the secondary market before maturity.
Market watchers believe the sustained issuance of the FGN Savings Bonds demonstrates the government’s commitment to promoting inclusive investment participation while diversifying its funding sources through domestic savings mobilisation.
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