The Debt Administration Workplace (DMO) has introduced the profitable allotment of the Federal Authorities of Nigeria (FGN) Financial savings Bonds for the month of June 2025, with a complete allotment of N4.01 billion.
In accordance with information revealed on the DMO’s official web site on Wednesday, the bonds have been supplied between June 2 and June 6, 2025.
The two-year bond, as a result of mature on June 11, 2027, was allotted at a coupon charge of 16.121%, whereas the 3-year bond, maturing on June 11, 2028, was issued at a 17.121% coupon charge.
The two-year bond acquired N2.01 billion in complete allotments, with 1,202 profitable subscriptions, whereas the 3-year bond attracted N1.995 billion, unfold throughout 1,321 profitable subscriptions. Each bonds may have quarterly coupon funds scheduled for September 11, December 11, March 11, and June 11 of every 12 months.
The settlement date for each bonds was June 11, 2025, marking the official graduation of the funding interval for subscribers.
The June 2025 allotment is barely decrease than the N4.28 billion recorded in Might 2025 public sale.
The bonds have been issued at N1,000 per unit, with a minimal subscription requirement of N5,000 and in multiples of N1,000 thereafter, as much as a most subscription of N50 million.
What it is best to know
The rates of interest supplied through the Might 2025 public sale—16.173% for the 2-year tenor and 17.173% for the 3-year tenor—have been increased than the charges supplied within the June 2025 public sale.
The Federal Authorities of Nigeria (FGN) Financial savings Bond programme, launched in 2017, was designed to deepen the home bond market, promote {financial} inclusion, and supply retail traders entry to safe and low-risk authorities securities.
- The FGN Financial savings Bond qualifies as an accepted funding underneath the Trustee Funding Act and can be recognised as a authorities safety underneath each the Firm Earnings Tax Act (CITA) and the Private Earnings Tax Act (PITA). This makes it eligible for tax exemption by pension funds and different certified institutional traders.
- Moreover, the bonds are listed on the Nigerian Change Restricted (NGX), offering traders with the choice to commerce them on the secondary market and enhancing general liquidity. In addition they qualify as liquid property for the aim of computing banks’ liquidity ratios.
Over time, FGN Financial savings Bonds have develop into more and more fashionable amongst Nigerians in search of protected and predictable funding choices. Amid issues over inflation and risky rates of interest in conventional financial savings merchandise, these government-backed bonds supply stability and constant returns.
