Approximately N1.43 billion in interest will be returned to investors who participated in the August 2025 FGN Savings Bonds.
The bonds were allotted by the Federal Government of Nigeria (FGN) through the Debt Management Office (DMO).
In a publication on Monday, September 1, the DMO disclosed that the bonds attracted N3.32 billion from subscribers.
The bonds were offered between August 4 and 8, 2025, at a coupon (interest) rate of 14.401 per cent for the 2-year bond and 15.401 per cent for the 3-year bond.
In its disclosure, the DMO stated that the federal government raised N573.31 million from the 2-year bond, which matures in August 2027, and N2.74 billion from the 3-year bond, which will mature in August 2028.
It indicated further that a combined 2,166 were successful investors, with 892 subscribers for the 2-year bond and 1,274 for the 3-year option.
Pinnacle Daily’s analysis of the DMO data shows that investors will earn N1.43 billion from the August 2025 FGN Savings Bonds.
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In the 2-year bond, investors will earn N165.13 million and N1.27 billion from the 3-year bond.
Both instruments carry quarterly coupon payment dates on February 13, May 13, August 13, and November 13, beginning from November 2025.
A bond is a debt obligation, according to the Nigerian Securities and Exchange Commission (SEC), the apex regulator in the Nigerian capital market.
Investors who buy bonds lend money to the issuer of the bond, and in return, the issuer makes a legal commitment to pay interest on the principal and to return it when the bond matures.
The hawkish stance of the Central Bank of Nigeria (CBN), leading to repeated hikes in the benchmark interest rate, sparked the boom being recorded in the Nigerian capital market fixed income.
The apex bank had steadily raised the rate from 11.5 per cent in 2022, including six hikes in 2024 alone, amounting to a cumulative 875 basis points to the 27.5 per cent.
How the bonds were issued
The bonds were issued at ₦1,000 per unit, with a minimum subscription requirement of ₦5,000 and in multiples of ₦1,000 thereafter, up to a maximum subscription of ₦50 million.
The FGN Savings Bond programme, introduced in 2017, was designed to deepen the domestic bond market, promote financial inclusion, and offer retail investors access to secure and low-risk government securities.
It has, over the years, become increasingly popular among Nigerians looking for safe and predictable investment options.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
