Federal Government of Nigeria (FGN) has successfully raised a total of ₦3.96 billion from its October 2025 Savings Bond issuance, signaling renewed investor confidence in government-backed securities despite current economic pressures.
According to data released by the Debt Management Office (DMO), the October offer was oversubscribed, reflecting strong retail participation and growing trust in Nigeria’s savings bond market as a viable investment option for citizens.
The DMO report showed that investors subscribed to both the two-year and three-year tenors of the bond, which were offered at 17.091% and 18.091% annual interest rates respectively among the highest rates recorded in recent months.
The breakdown of the subscription revealed that the two-year FGN Savings Bond (October 2025) attracted ₦1.547 billion, while the three-year bond (October 2027) drew ₦2.413 billion, bringing the total to ₦3.96 billion.
Analysts say the performance of the latest issuance reflects an increasing appetite for low-risk investments amid uncertainties in the capital market and inflationary trends affecting real returns on other assets.
Speaking on the development, a financial analyst in Lagos noted, “The FGN Savings Bond continues to provide an accessible and secure avenue for small investors to participate in government securities while earning competitive returns. It also helps deepen Nigeria’s domestic debt market and supports financial inclusion.”
The FGN Savings Bond was introduced in March 2017 to encourage retail investors, especially individuals and small businesses, to invest in government debt instruments. It is issued monthly and is open to all Nigerians through stockbrokers and capital market operators.
Proceeds from the bond issuance are used by the Federal Government to finance part of its budget deficit and support key infrastructure projects across sectors such as health, education, and transportation.
According to the DMO, all qualified investors who participated in the October offer will receive their interest payments quarterly, while the principal will be repaid in full upon maturity.
Experts believe that the consistent success of the savings bond programme reflects growing public confidence in Nigeria’s domestic debt instruments and the government’s fiscal strategy to diversify its borrowing sources.
In recent years, Nigeria has faced increased borrowing needs due to reduced oil revenues, rising debt servicing costs, and the drive to fund critical infrastructure. However, initiatives like the FGN Savings Bond are helping to boost local participation and reduce dependence on foreign loans.
Market watchers say that as inflation moderates and the Central Bank stabilizes monetary policy, interest in savings bonds is likely to increase further, offering ordinary Nigerians a reliable means of wealth preservation and passive income.
The DMO encouraged Nigerians to take advantage of future offers, emphasizing that the bond remains one of the safest investment vehicles with guaranteed returns backed by the Federal Government.
