The Debt Management Office (DMO) has opened subscriptions for two federal government of Nigeria (FGN) savings bonds at N1,000 per unit.

The first offer is a two-year savings bond due to mature on May 14, 2027, at 16.173 per cent per annum, while the second is a three-year savings bond due to mature on May 14, 2028, at an interest rate of 17.173 per cent per annum.

The FGN savings bond offer is targeted at retail investors with guaranteed quarterly interest payments and repayment of the principal at maturity.

In a statement on its official website on Monday, DMO said the offers opened on May 5, 2025, will close by May 9, 2025.

The DMO said the settlement date is May 14, 2025, while coupon payment dates are made quarterly – August 14, November 14, February 14, and May 14.

According to the DMO, “They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment is made on the maturity date.”

It said the savings bonds, like all other government securities, are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investors,” DMO said.

The agency said the bonds are listed on the Nigerian Exchange Limited ( NGX) and qualify as a liquid asset for liquidity ratio calculation for banks.

The Federal Government has shown a preference for borrowing from the domestic bond market and has so far borrowed a total of N1.94 trillion from bond investors in the first quarter of 2025.

The borrowings are part of the government’s plan to fund its budget deficit of N13 trillion