FGN Savings Bond @ 13.01% – Offer Starts Today 13.03.2017.

Posted on Posted in Personal Finance Advice

It’s here people, the FGN Savings Bond. I have been getting a number of mails and chats on this. So I decided to write this question and answer blog post.

Q: What is the FGN Savings Bond.

A: FGN savings bond is a bond issued by the Debt Management Office on behalf of the Nigerian government. The bond is tailored and targeted at retail investors and includes a guaranteed interest payment and repayment of the principal. 

Q: How much is the interest rate?

A: 13.01% annual rate. Interest is paid quarterly.

Q:  What is the minimum / maximum investment?

A: N5,000 minimum. N50 million maximum.

Q: What are the benefits for me as an investor?

A: Good savings/investment opportunity.

Bond can be accepted as a form of collateral.

Bond can be sold at the secondary market.

Interest is tax free.

Minimum entry requirement.

Secured investment as the Bond is backed by the full faith and credit of the Federal Government of Nigeria.

Q: How do I subscribe?

A: Through a stockbroker.

Q: I don’t have a stockbroker?

A: It is easy to open an account with a stockbroker. Most of them are online. Simply visit the website of your choice security firm and complete their online registration form.

Q: The offer is up for only 5days, I can’t meet up with this?

A: Not to worry, the FGN savings bond issue will come up every month and you can also buy from the secondary market.

Q: What is the tenor of the investment?

A: It is for 2 years.

Q: I can’t tie my money down for 2 years?

A: The FGN savings bond can be sold in the stock market.

Q: Is it a better investment that treasury bills?

A: Note: Minimum entry requirement for treasury bills has been raised from N100k to N50m. However, one can still purchase from the secondary market through your bank. So to determine the better option, ask your bankers for the interest rate of treasury bills offered in the secondary market and compare with the 13.01% of the FGN savings bond. Also, unlike treasury bills were interest was paid upfront, interest for the fgn savings bond will be paid every quarter. The FGN savings bond also has a longer tenor than treasury bills.

I hope this covers all.

Make 2017 count, don’t eat it all. Save right and invest smart.

God bless you.



13 thoughts on “FGN Savings Bond @ 13.01% – Offer Starts Today 13.03.2017.

  1. Pls oh Akaglue. Don’t mind my ignorance. Wont things like this Biafra looming here and there, coupled with this political instability affect the governments ability to pay back interest and capital of both Treasury bills and Bonds?

    1. Hello Zainab, thank you for visiting. Follow me on instagram @akaglue and also subscribe to my mailing list so that you don’t miss out on any of my post. Contact your stock broker to subscribe to the FGN savings bond.

  2. Hi Amaka,

    This post is brilliant, I love how you addressed most of the areas that people would need clarification on. 13.01% is a good return considering this recession.

    Thank you for sharing. 🙂

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