What is the FGN Savings Bond?
The FGN Savings Bond is a retail investment product issued monthly by the Nigerian Federal Government through the Debt Management Office (DMO). It is designed to give ordinary Nigerians direct access to Federal Government securities — instruments that were previously only available to institutional investors and high-net-worth individuals through the primary market.
The bond is available in two tenors: a 2-year note and a 3-year note. Both are offered during a monthly subscription window, typically in the second week of each month. The minimum investment is ₦5,000, with additional investments in multiples of ₦1,000 up to a maximum of ₦50,000,000 per investor per month. Interest is paid quarterly — for the current series, on 15 January, 15 April, 15 July, and 15 October — and the full principal is repaid in a single bullet payment at maturity.
Crucially, the FGN Savings Bond is listed on the Nigerian Exchange Group (NGX), giving investors secondary-market liquidity should they need to exit before maturity. As a sovereign instrument, it carries very low credit risk — the Federal Government of Nigeria is the obligor. Credit risk is only one dimension, though; the full profile is set out below.
Risk profile — FGN Savings Bond
Backed by the full faith and credit of the Federal Government of Nigeria and generally considered to carry very low sovereign credit risk. Investors may still face inflation risk, interest-rate risk, liquidity risk and market-price risk if the investment is sold before maturity.
| Risk type | Assessment | Why |
|---|---|---|
| Credit / default risk | Very low | Direct obligation of the Federal Government of Nigeria — default is considered negligible. |
| Inflation risk | Present | The coupon is fixed for the full tenor, so a rise in inflation erodes your real return. |
| Interest-rate / market-price risk | Present if sold before maturity | Held to maturity you receive par. Sold early on the NGX, the price moves against you when yields rise. |
| Liquidity risk | Low to moderate | Listed on the NGX, but the retail secondary market is thin — you may not sell quickly at a fair price. |
| Reinvestment risk | Present | Quarterly coupons must be reinvested at whatever rate prevails then, which may be lower. |
These are CheckInvestNg’s own qualitative assessments for retail investors, not credit ratings from a rating agency and not personalised investment advice. Risk levels can change with market conditions.
Current FGN Savings Bond Interest Rates
The DMO sets FGN Savings Bond rates monthly, benchmarked against the secondary market yield for comparable Federal Government of Nigeria bonds. The 3-year bond consistently offers a higher rate than the 2-year bond — typically a spread of 100 basis points (1%) — to compensate investors for committing capital for a longer period.
As of July 2026, the 2-year bond offers 14.716% per annum and the 3-year bond offers 15.716% per annum. These rates are significantly higher than typical bank savings rates and competitive with money market funds, while providing the additional advantage of zero withholding tax on interest income. Our calculator uses the latest DMO Savings Bond rates, manually verified from the DMO's published monthly offer circular.
How to Use This FGN Savings Bond Calculator
- Enter your investment amount — drag the slider or click the value to type directly. The minimum is ₦5,000 and the maximum is ₦50,000,000.
- Select your bond tenor — choose between the 2-year and 3-year options. The latest published DMO rate for each tenor is displayed beside the button.
- Read your results — the calculator instantly shows your quarterly coupon amount, total coupon income over the full tenor, principal returned at maturity, and total return.
- Review the payment schedule — the chart on the right shows cumulative income quarter by quarter, and the table lists each exact payment date.
- Switch to USD — use the currency toggle in the top navigation to view all values in US Dollars at the current CBN rate.
Benefits of Investing in FGN Savings Bonds
The FGN Savings Bond offers a combination of features that make it one of the most attractive retail investment options in Nigeria today.
- —Sovereign safety: The bond is backed by the full faith and credit of the Federal Government of Nigeria, so credit (default) risk is negligible — though, like any investment, it remains exposed to inflation and interest-rate risk.
- —Tax-exempt interest: Under the Nigeria Tax Act 2025, interest income from FGN bonds is exempt from withholding tax and personal income tax — unlike Treasury Bills, fixed deposits and MMFs, which are subject to 10% WHT.
- —Predictable quarterly income: The fixed coupon gives you certainty about exactly how much you will receive and when — ideal for retirees and income-focused investors.
- —NGX liquidity: Unlike a fixed deposit, you can sell your bond on the Nigerian Exchange if you need your money before maturity.
- —Low minimum entry: At ₦5,000, the FGN Savings Bond is one of the most accessible government investments in Africa.
FGN Savings Bond vs Other Nigerian Investments
How does the FGN Savings Bond compare to other popular Nigerian investment options?
| Instrument | Rate | WHT | Liquidity | Credit risk |
|---|---|---|---|---|
| FGN Savings Bond (2yr) | 14.72% p.a. | Exempt | NGX secondary | Very low |
| FGN Savings Bond (3yr) | 15.72% p.a. | Exempt | NGX secondary | Very low |
| NTB (364-day) | ~18% p.a.* | 10% WHT | Secondary market | Very low |
| Money Market Fund | 20–22% p.a. | 10% WHT | Daily redemption | Very Low |
| Bank Fixed Deposit | 13–16% p.a. | 10% WHT | At maturity | Low |
* NTB rates are discount rates; true yield is higher. Treasury Bills attract 10% withholding tax since 28 October 2025, while FGN Savings Bond coupons remain tax-exempt. The “credit risk” column reflects default risk only — as sovereign instruments, FGN bonds and NTBs carry negligible default risk, but all investments remain exposed to inflation and interest-rate risk. Rates are indicative and subject to change.
How to Invest in FGN Savings Bonds in Nigeria
Investing in the FGN Savings Bond is straightforward and can be done through several channels during the monthly subscription window:
- 1.Via a Stockbroker: Any SEC-registered stockbroker on the Nigerian Exchange can place a subscription on your behalf. You will need a CSCS account (Central Securities Clearing System).
- 2.Via Commercial Banks: Most major Nigerian banks — including GTBank, Access, Zenith, UBA, and First Bank — accept FGN Savings Bond subscriptions at their branches.
- 3.DMO Distributor Agents: The DMO maintains a list of licensed distribution agents who can process your subscription. Visit dmo.gov.ng for the current list.
- 4.Timing: Subscriptions open during the monthly offering window, typically in the second week of each month. The DMO announces the exact dates and rates via their website and the financial press.
Frequently Asked Questions
What is the minimum investment for FGN Savings Bond?
The minimum investment is ₦5,000, with subsequent multiples of ₦1,000. The maximum per individual per month is ₦50,000,000.
How often are FGN Savings Bond coupons paid?
Coupons are paid quarterly — for the current series, on 15 January, 15 April, 15 July, and 15 October each year.
Is FGN Savings Bond interest taxable in Nigeria?
No. Interest income from FGN Savings Bonds is fully exempt from withholding tax and personal income tax under the Nigeria Tax Act 2025.
What is the difference between the 2-year and 3-year FGN Savings Bond?
The 3-year bond offers a higher rate (typically 100bps above the 2-year) to compensate for the longer tenor. Both pay quarterly coupons and return full principal at maturity.
Can I sell my FGN Savings Bond before maturity?
Yes. FGN Savings Bonds are listed on the NGX and can be sold in the secondary market. The price you receive will depend on prevailing interest rates at the time of sale.