The Debt Management Office (DMO) of Nigeria has opened the subscription window for the Federal Government Savings Bonds (FGN Savings Bonds) for January 2025. The offering, available from January 13 to January 17, 2025, presents two options: a two-year bond with a 17.235% interest rate maturing on January 22, 2027, and a three-year bond offering 18.235%, maturing on January 22, 2028.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and a maximum investment limit of N50 million. The settlement date for successful subscriptions is January 22, 2025, with the first quarterly coupon payment scheduled for April 22, 2025.
The offering is part of a broader trend of rising yields, reflecting Nigeria’s tightening interest rates as the Central Bank of Nigeria (CBN) continues its efforts to curb inflation and stabilize the economy. The increase in the three-year bond’s interest rate from 12.033% in January 2024 to 18.235% in January 2025 underscores this shift.
The rise in interest rates has made Nigerian bonds more attractive to both domestic and foreign investors, particularly as foreign portfolio investors seek competitive returns in a high-interest rate environment.
Recent bond auctions have also seen strong investor demand, with a December 2024 auction raising a total of N211.144 billion. The higher yields have solidified Nigeria’s position as an attractive destination for bond investments
