FG Savings Bond Exposure Climbs 6.27% to ₦36.23bn — What It Means for Investors
The Federal Government (FG) continues to rely on domestic borrowing to bridge the 2025 budget deficit. One major channel? The FGN Savings Bond — a product designed for everyday Nigerians to invest safely and earn interest.
Key Highlights:
• Total Exposure: Grew by 6.27% YoY to ₦36.23bn (Jan–Sept 2025) compared to ₦34.09bn in the same period of 2024.
• Quarterly Breakdown:
• Q1 2025 → ₦12.95bn (up 76% YoY )
• Q2 2025 → ₦12.65bn (down 12.6% YoY )
• Q3 2025 → ₦10.63bn (down 13.4% YoY).
• September 2025 Auction: Raised ₦3.05bn, attracting 2,039 investors.
• 2-year bond → Coupon: 15.54%, ₦631.7m raised.
• 3-year bond → Coupon: 16.54%, ₦2.42bn raised.
• Yields: Down from 2024 (17–18%) to 2025 (15–16%). Lower yield = safer environment but smaller returns. ⚖️
Why the Strong Demand?
• Risk-Free: FG bonds are considered “safe haven” investments backed by the government.
• Liquidity: Pension funds & institutional investors have excess cash to deploy.
• Limited Alternatives: With the equities market shallow and volatile, bonds look attractive for capital preservation.
Big Picture:
• The government plans to borrow ₦13 trillion in 2025 — with much of it via bonds.
• For retail investors, entry is as low as ₦5,000, with a cap of ₦50m.
• Experts believe if inflation eases and interest rates fall later in 2025, the bond market could see a rally .
Investor Lesson:
FGN Savings Bonds may not offer the highest returns, but they provide stability, guaranteed interest, and portfolio balance — especially for conservative investors or those looking for safe income streams. ✅
The Federal Government (FG) continues to rely on domestic borrowing to bridge the 2025 budget deficit. One major channel? The FGN Savings Bond — a product designed for everyday Nigerians to invest safely and earn interest.
Key Highlights:
• Total Exposure: Grew by 6.27% YoY to ₦36.23bn (Jan–Sept 2025) compared to ₦34.09bn in the same period of 2024.
• Quarterly Breakdown:
• Q1 2025 → ₦12.95bn (up 76% YoY )
• Q2 2025 → ₦12.65bn (down 12.6% YoY )
• Q3 2025 → ₦10.63bn (down 13.4% YoY).
• September 2025 Auction: Raised ₦3.05bn, attracting 2,039 investors.
• 2-year bond → Coupon: 15.54%, ₦631.7m raised.
• 3-year bond → Coupon: 16.54%, ₦2.42bn raised.
• Yields: Down from 2024 (17–18%) to 2025 (15–16%). Lower yield = safer environment but smaller returns. ⚖️
Why the Strong Demand?
• Risk-Free: FG bonds are considered “safe haven” investments backed by the government.
• Liquidity: Pension funds & institutional investors have excess cash to deploy.
• Limited Alternatives: With the equities market shallow and volatile, bonds look attractive for capital preservation.
Big Picture:
• The government plans to borrow ₦13 trillion in 2025 — with much of it via bonds.
• For retail investors, entry is as low as ₦5,000, with a cap of ₦50m.
• Experts believe if inflation eases and interest rates fall later in 2025, the bond market could see a rally .
Investor Lesson:
FGN Savings Bonds may not offer the highest returns, but they provide stability, guaranteed interest, and portfolio balance — especially for conservative investors or those looking for safe income streams. ✅