FGN Savings Bonds Open For September With Interest Rates Up To 18.20%

The Debt Management Office (DMO) of Nigeria has announced the opening of subscriptions for the Federal Government of Nigeria (FGN) savings bonds for September 2024.

The subscription period began today, September 2^nd, and will last for five days, ending on September 6th. The bonds offer attractive interest rates, with the two-year savings bonds available at 17.202 percent and the three-year savings bonds at 18.202 percent.

Each bond unit is priced at N1, 000, with a minimum subscription of N5, 000 and subsequent multiples of N1, 000. The maximum subscription allowed is N50 million. Interest payments on these bonds will be made quarterly, with settlement scheduled for September 11, 2024.

The interest rate of 18.202 percent on the FGN savings bonds is one of the highest in recent years. This increase in rates reflects the Central Bank of Nigeria’s efforts to control inflation and stabilise the foreign exchange market by attracting foreign capital investments. Last September, the interest rate on similar bonds was 12.031 percent, highlighting a significant rise of 6.17 percentage points within a year.

In August 2024, the federal government raised N374.751 billion through its FGN bond auction, showing strong investor interest in long-term securities. The most popular bond was the nine-year bond, which saw subscriptions totaling N375.083 billion, far exceeding the N50 billion offered. The bond was eventually allotted N314.213 billion at a marginal rate of 21.50 percent, reflecting a high level of investor confidence.