After raking in N1.63tr in Feb, DMO offers fresh FG bonds for subscription

The Debt Management Office (DMO) has opened offers for subscription to two Federal Government of Nigeria (FGN) savings bonds for March 2025 at interest rates of 16.635 per cent and 17.635 per cent, respectively.

The DMO, in a statement via its X handle on Monday in Abuja, said the first offer is a two-year FGN savings bond due on March 12, 2027, at an interest rate of 16.635 per cent per annum.

The second offer is a three-year FGN savings bond due on March 12, 2028, at an interest rate of 17.635 per cent per annum.

The opening date for the offer is March 3, 2025, the closing date is March 7, 2025; the settlement date is March 12, 2025; while coupon settlement dates are June 12, September 12, December 12, and March 12.

“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,” the DMO said, adding that interest is payable quarterly, while bullet repayment (principal sum) is on the maturity date.

It assured that FGN savings bonds are backed by the full faith and credit of the FGN and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act,” it noted, adding that they also qualify as government securities within the meaning of the Company Income Tax Act and the Personal Income
Tax Act for tax exemption for pension funds, among other investors.

The Debt Management Office also added that they are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.

Just last week, the DMO announced that it raised N1.63 trillion from the February 2025 Federal Government of Nigeria (FGN) bond auction. This is about N960.060 billion more than the N669.94 billion it raised from the January 2025 bond auction.

The government plans to borrow about N13 trillion from FGN bonds in 2025 to finance its projected budget deficit.