The Federal Government of Nigeria Savings Bond
The FGN Savings Bond is a bond issued by the Debt Management Office (DMO) on behalf of the Federal
Government of Nigeria. That means this bond is a risk free investment that is backed by the full faith and credit of the
Federal Government of Nigeria. Like the name implies it is a bond and it remains so, and this type of bond has the highest
rating and lowest level of default. This particular bond is targeted at retail investors – individual savers, small businesses,
co-operatives, foundations, non-profit organization and other investors, with a guaranteed quarterly interest payment and
bullet payment at maturity.
Purpose of the FGN Savings Bond:-
The Features of the FGN Savings Bond:
- To deepen the national savings culture
- To provide retail investors with better return on their savings instead of their funds just lying idle in the bank
- To provide opportunity to all citizen irrespective of income level, to contribute to National Development
- To enable all citizen participate in and benefit from the favourable returns available in the capital market.
- To diversify funding sources for the Government.
Benefits of Investing in the FGN Savings Bonds:
- The instrument is risk free as it is backed by the full faith of the Federal republic of Nigeria if held till maturity.
- The bond is issued monthly
- The tenure of the bond is 2 or 3 years
- The coupon (interest) is determined by the Debt Management office based on the prevailing market rates
- Coupon/ interest will be announced before the offer date
- Interest are paid quarterly
- The offer period will be 5 working days from the date of announcement each month
- This investment can be made on a continuous basis
- The bond will settle in the investor’s CSCS account, so there will not be certificate issued
- You can purchase the bond through us.
- Minimum subscription is N5,000.00 and maximum subscription is N50,000,000.00
- The instrument will be listed and traded on the floor of the Nigeria Stock exchange
- Guaranteed principal and interest returns backed by the full faith and credit of the Federal Republic of Nigeria
- Diversification of investment
- Attractive rate of return on coupon. As this is higher and competitive when compared to banks‘ savings deposit rates.
- Enhanced cash flow as interest are paid quarterly and repayment of the principal at maturity.
- The tenure of the bond is 2 or 3 years unlike the traditional bond that are longer in tenure.
- The bond can be used as collateral for loan
- Return on investment are tax exempted unlike dividend from stocks
- It is a good way to save towards a project in the future.
- The bond is liquid, that is, it can be sold before maturity, should you be press for cash, it will be listed and sold on the floor of The Nigerian Stock Exchange but the price will be subject to the forces of demand and supply for the instrument. An increase in the interest rate will result to a reduction in the face value of the bond and vice versa.
How to participate:
Once you have a CSCS account with us you can send in the amount you want to invest to our bank account and notify us.
- A riskless investment if instrument is held till maturity
- If you sell bond before maturity the price will be subject to the forces of demand and supply for the instrument. An increase in the interest rate will result to a reduction in the face value of the bond and vice versa.
o Payments should be made into our account stated below.
Bank Name: GTB
Account No: 0003293820
Account Name: Lambeth Trust and Investment Company Limited
Then you can complete the subscription form.
You will also need a functional bank account where your interest and bullet will be paid into (having a BVN number is mandatory).
Should you want to invest for your wards, friends and relatives, then you will have to open a CSCS account for them to participate in this.
For more enquiries, please send an email to
or call us on 014539636 or on 014539025.