Nigeria’s Debt Management Office (DMO) has opened the subscription window for the December 2025 issuance of the Federal Government of Nigeria Savings Bond (FGNSB), offering fresh 2-year and 3-year tenors to retail investors.
According to a circular released on Monday, the 2-year bond, which matures on December 10, 2027, carries an annual interest rate of 12.838%, while the 3-year bond, due December 10, 2028, offers a slightly higher 13.838% return.
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The subscription window runs from December 1–5, 2025, with settlement on December 10. Coupon payments will be made quarterly by March 10, June 10, September 10 and December 10 throughout the life of the bond.
Rates Decline from November Offer
The December coupon rates reflect a modest decline from the previous month’s issuance, where the 2-year and 3-year instruments were priced at 13.565% and 14.565%, respectively.
The reduction aligns with the Central Bank of Nigeria’s decision at its 303rd MPC meeting to maintain all policy parameters, including the Monetary Policy Rate (MPR) at 27%, underscoring its stance on price stability and FX market consolidation.
Designed for Retail Investors
The FGNSB continues to target everyday Nigerians looking for safe, fixed-income investment options. The minimum subscription remains N5,000, with additional subscriptions in multiples of N1,000 and a maximum cap of N50 million per investor.
Backed fully by the Federal Government, the Savings Bond is considered one of the lowest-risk instruments available in the Nigerian financial market. Investors receive predictable interest income quarterly and full repayment of principal at maturity.
Key Benefits for Investors
The December issuance retains all traditional advantages of FGNSB participation, including:
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Qualification as trustee securities under the Trustee Investment Act
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Tax exemptions for eligible investors under CITA and PITA
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Listing on the Nigerian Exchange (NGX) for improved liquidity
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Recognition as liquid assets for banks’ liquidity ratio calculations
Deepening Financial Inclusion
Launched in 2017, the Savings Bond programme aims to democratize access to government securities, deepen the domestic debt market, and encourage retail participation.
The relatively attractive coupon rates also offer households a hedge against inflation and a stable alternative to volatile asset classes.
The DMO’s continued issuance reinforces the government’s confidence in the domestic capital market and underscores a strategy of mobilizing local savings to fund national priorities without heavy reliance on external borrowing.
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