FG opens subscription for December savings bonds amidst N4.55tn excess borrowing

By : Joesph Chibueze

Date: 1 December 2025 1:12pm WAT

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The Debt Management Office (DMO) on Monday opened subscription for two federal government of Nigeria (FGN) savings bonds at N1,000 per unit.

This is despite the fact that the government has already surpassed its borrowing target for 2025 by over N4.55 trillion.

The DMO said the first offer is a two-year savings bond due to mature on December 10, 2027, at 13.538 per cent per annum, while the second is a three-year savings bond due to mature on December 10, 2028, at an interest rate of 14.538 per cent per annum.

The FGN savings bond offer is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.

In a statement on its official website on Monday, DMO said the offers will open today December 1, 2025, while the closing date will be December 5, 2025.

The DMO said the settlement date is December 10, 2025, while coupon payment dates are made quarterly – March 10, June 10, September 10 and December 10.

According to the DMO, “They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment is made on the maturity date.”

It said the savings bonds, like all other government securities, are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investors,” DMO said.

The agency further said the bonds are listed on the Nigerian Exchange Limited ( NGX) and qualify as a liquid asset for liquidity ratio calculation for banks.

Last month DMO announced a strong level of investor participation at the FGN November 2025 bond auction, with total bids reaching N657 billion, more than 120 per cent of the offer size of N460 billion.

The government has as of October 2025 borrowed the sum of N17.36 trillion from both domestic and foreign lenders, overshooting the borrowing target for the period by more than half. This figure represents an excess of N6.06 trillion, or 55.6 percent above the N10.9 trillion projection set in the 2025 Appropriation Act.

The entire year’s approved borrowing stands at N13.08 trillion, indicating that the government has already gone far beyond its intended limit by N4.55 trillion.

Data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) revealed that as of October 2025, domestic borrowings amounted to N15.8 trillion, while foreign borrowings in the first half of the year stood at N1.56 trillion. In addition, the Federal Government recently initiated plans to raise another $2.35 billion (about N3.38 trillion) through a Eurobond issuance — which could push total borrowings for the year to around N20.74 trillion.

The government has prioritised domestic borrowing due to rising external borrowing costs, foreign exchange pressures, increased fiscal needs and refinancing obligations, and the need to deepen domestic capital markets.

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