The Federal Government of Nigeria (FGN) Savings Bond lets retail investors lend to the government at a fixed interest rate. It is a low-risk, patriotic way to earn steady income. Here is how it works and whether it suits you.
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What an FGN Savings Bond Is
Issued by the DMO on behalf of the government, with quarterly interest payments and a fixed maturity (typically 2–3 years). Investors buy at face value and receive interest through the term plus principal at maturity.
Key Features
- Fixed, periodic (quarterly) interest.
- Low minimum (often ₦5,000).
- Sovereign-backed (government-guaranteed).
- Traded via licensed stockbrokers or banks.
How to Buy
- Register with a licensed broker/bank.
- Fund your account.
- Place an order in the bond auction window via the DMO calendar.
- Hold to maturity or trade in the secondary market.
Risks to Know
Low default risk, but interest-rate changes affect resale price, and inflation can erode real returns.
FAQ
Are FGN savings bonds safe?
They carry sovereign backing — among the safer naira investments.
How much can I invest?
Minimums are small by design to encourage retail participation; confirm the current amount.
Related: Treasury Bill Rates and CDs vs T-Bills.