Quick Summary: The Debt Management Office has launched the June 2025 FGN Savings Bonds with interest rates up to 17.121% per annum. The offer runs from June 2 to June 6, providing a secure investment backed by the Federal Government.
The Debt Management Office (DMO) has announced the launch of the June 2025 Federal Government of Nigeria (FGN) Savings Bonds. This month’s offer provides interest rates of up to 17.121% per annum, giving investors a secure and attractive opportunity to grow their funds.
Subscription Now Open
The subscription window opened on Monday, June 2, 2025, and will run until Friday, June 6, 2025.
According to a post by the DMO on X (formerly Twitter):
We welcome you to this month of June with the:
- 2-Year FGN Savings Bond due June 11, 2027 at 16.121% p.a.
- 3-Year FGN Savings Bond due June 11, 2028 at 17.121% p.a.
Offer opens tomorrow and closes June 6, 2025. Kindly contact your stockbroker to invest.”
Bond Details
The June bond offering includes two options:
- 2-Year Bond maturing on June 11, 2027, with an interest rate of 16.121%
- 3-Year Bond maturing on June 11, 2028, offering an interest rate of 17.121%
Investors can begin with a minimum subscription of N5,000, and make additional investments in multiples of N1,000, up to a maximum of N50 million. Each bond unit is priced at N1,000.
Settlement dates for the bonds are fixed quarterly: March 11, June 11, September 11, and December 11 each year.
Slight Dip in Rates from May
This month’s interest rates are slightly lower than those offered in May:
- The 3-year bond decreased from 17.173% to 17.121%
- The 2-year bond dropped from 16.173% to 16.121%
These adjustments may be linked to the Central Bank of Nigeria’s (CBN) decision to maintain the Monetary Policy Rate at 27.5% in recent months.
Bonds Remain Attractive Despite Rate Cuts
Despite the slight drop, Nigerian bonds continue to appeal to investors, including foreign portfolio investors (FPIs). The CBN’s efforts to curb inflation and stabilize the naira have made local bonds more favorable, especially compared to global options with lower yields.
May Auction Results: N4.28 Billion Raised
In May, the Federal Government raised N4.28 billion through the FGN Savings Bond auction. This figure is slightly below the N4.34 billion raised in April.
Details of the May auction include:
- 2-Year Bond at 16.173%:
- Total allotment: N840.43 million
- Number of successful subscriptions: 994
- 3-Year Bond at 17.173%:
- Total allotment: N3.45 billion
- Number of successful subscriptions: 1,537
What Investors Should Know
Investment analysts, including Barclays, have advised a cautious approach. They recommend reducing exposure to longer-dated Nigerian dollar bonds in favor of shorter maturities offering better yields.
For example:
- Nigeria’s January 2049 bond yields around 10.8%
- September 2033 bond yields approximately 10.4%
Both bonds have seen yield drops of over 100 basis points since early April, driven by improving sentiment in emerging markets.
Strong Demand for Treasury Bills
Meanwhile, the Nigerian Treasury Bills (NTB) auction on May 21, 2025, saw a strong investor response:
- The 364-day bill received N1.05 trillion in subscriptions—three times the N350 billion offered.
- Total subscriptions across all tenors (91-day, 182-day, and 364-day) reached N1.17 trillion, far exceeding the total offer of N500 billion.
The auction was conducted by the Central Bank of Nigeria and highlights continued investor confidence in government securities.
