The Debt Management Office has opened the subscription window for the Federal Government Savings Bonds (FGN Savings Bonds) for January 2025, offering individual and institutional investors the opportunity to invest in two bond options.
The subscription window is open from January 13 to January 17, 2025, with two bonds available, a two-year bond maturing on January 22, 2027, with an interest rate of 17.235%, and a three-year bond maturing on January 22, 2028, offering 18.235%.
Each bond unit is priced at N1,000 with a minimum subscription of N5,000.
Investors can increase their investment in increments of 1,000 naira up to a maximum of N50m.
If successfully subscribed, the settlement date is 22 January 2025, with the first quarterly coupon payment scheduled for 22 April 2025, followed by payments on 22 July, 22 October and 22 January of each year thereafter.
This bond offering offers Nigerians a safe investment choice with secure and predictable yields.
Notably, the three-year savings bond for January 2025 has an interest rate of 18.235%, up from 12.033% in January 2024—an increase of 6.20 percentage points in just a year.
The adjustment reflects the Central Bank of Nigeria’s continued efforts to tighten monetary policy since February 2024.
The increasing attractiveness of longer-term securities coincides with a rising interest rate environment in Nigeria. In November 2024, the CBN increased its policy rate by 25 basis points from 27.25% to 27.50% as part of a strategy to combat inflation, which hit 33.88% that month.
This rate hike followed six consecutive increases by the Monetary Policy Committee aimed at curbing inflation and stabilizing economic conditions.
These efforts have made Nigerian bonds increasingly attractive to foreign portfolio investors (FPIs), who are seeking competitive returns.
This trend has reinforced Nigeria’s position as a strong investment destination for bonds.
Nigeria raised a total of N211.144bn in a December 16, 2024 auction with two bond offerings: the 19.30% FGN APR 2029 and the 18.50% FGN FEB 2031.
The 5-year bond drew a total subscription of N67.457bn, while the 7-year bond received bids totalling N211.363bn.
These offerings demonstrate strong investor interest, despite changing economic conditions.
