DMO raises N4.3bn from May federal government savings bond offer

The Debt Management Office (DMO) has successfully raised N4.3 billion through the May 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds.

The offer, which opened to investors between May 5 and May 9, 2025, will be settled on May 14, 2025.

The FGN Savings Bond is a secure debt instrument targeted at retail investors, offering fixed quarterly coupon payments and backed by the full faith of the Federal Government. It aims to deepen domestic savings and promote financial inclusion by giving Nigerians an accessible opportunity to invest in government securities.

The May offer comprised two tenors:

A two-year bond maturing on May 14, 2027, with an interest rate of 16.173%.

A three-year bond maturing on May 14, 2028, offering a higher coupon of 17.173%.

Interest on both bonds will be paid quarterly — on August 14, November 14, February 14, and May 14 each year.

The two-year bond recorded N840.43 million in allotments from 994 successful investors. The three-year bond saw greater interest, with N3.47 billion allotted across 1,537 subscriptions.

The May issuance adds to the Federal Government’s broader domestic borrowing strategy. In the first quarter of 2025 alone, the government raised N1.94 trillion from bond auctions, according to figures from the DMO.

These fundraising efforts form part of ongoing initiatives to finance the budget deficit and support infrastructural and social development projects across the country.