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DMO offers two year FGN Savings Bonds @9% despite inflation being 22.4%

The Debt Management Office (DMO) of Nigeria has announced a subscription offer for the Federal Government of Nigeria Savings Bond.

This initiative, authorized under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, aims to provide investors with an opportunity to earn competitive interest rates while supporting the country’s economic development.

The subscription offer includes two options: a 2-Year FGN Savings Bond due on July 12, 2025, with an annual interest rate of 9.070%, and a 3-Year FGN Savings Bond due on July 12, 2026, offering an annual interest rate of 10.070%.

These rates offer a negative real return as they are well below the national inflation rate of 22.4% for the month of May 2023.

Other details: The subscription period for the FGN Savings Bond opened on July 3, 2023, and will close on July 7, 2023.

  • Interested investors are encouraged to apply during this timeframe to secure their participation. The settlement date for the bonds is set for July 12, 2023.
  • Once subscribed, bondholders will receive coupon payments at regular intervals. The coupon payment dates are scheduled for October 12, January 12, April 12, and July 12. These consistent payments provide investors with a reliable source of income over the bond’s duration.

The Federal Government of Nigeria Savings Bond program is designed to attract domestic savings while simultaneously financing critical infrastructure projects and government initiatives.

  • By investing in these bonds, individuals and organizations can contribute to the country’s development efforts and earn favorable returns on their investments.
  • Interested investors are advised to contact their financial advisors or visit the Debt Management Office’s official website for further details and application procedures.


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