An FGN Bond (Federal Government of Nigeria Bond) is a long-term debt instrument issued by the Federal Government of Nigeria (FGN) to raise funds for infrastructure and development projects. It is a risk-free investment backed by the full faith of the government, making it one of the safest ways to earn stable returns in Nigeria.
Key Features of FGN Bonds:
Tenor (Maturity Period): Ranges from 2 to 30 years
Interest (Coupon Rate): Paid semi-annually (every 6 months) until maturity
Minimum Investment: ₦50,000 (in the primary market)
Liquidity: Can be sold before maturity in the secondary market
Tax-Free: No tax on interest earned
How to Get Started with FGN Bonds in Nigeria
1. Buy from the Primary Market (Best for Long-Term Investors)
FGN Bonds are issued through the DMO (Debt Management Office) every month.
Steps to Buy from the Primary Market:
Open a CSCS Account (Central Securities Clearing System) through a bank or stockbroker.
Check Auction Dates: The Debt Management Office (DMO) announces bond auctions every month.
Place an Order: Submit a bid through a bank or licensed stockbroker.
Make Payment: If your bid is successful, the CBN debits your account.
Receive Bond Units: Your FGN Bonds will be credited to your CSCS account.
Earn Interest Every 6 Months until the bond matures.
Where to Check Auction Dates? Visit the DMO Website.
2. Buy from the Secondary Market (More Flexible for Investors)
You can buy already issued FGN Bonds through banks, stockbrokers, and investment platforms.
Steps to Buy from the Secondary Market:
Open an investment account with a stockbroker, bank, or investment platform.
Ask them for available FGN Bonds in the secondary market.
Buy at the prevailing market price.
Earn semi-annual interest payments until maturity or sell before maturity.
Where to Buy?
- Banks: GTBank, Zenith, Access, UBA, First Bank
- Stockbrokers: Meristem, ARM, FBNQuest, Stanbic IBTC, United Capital
- Investment Apps: Cowrywise, Chaka, Trove, Risevest
3. Invest via FGN Bond Mutual Funds
If you want passive investment without buying bonds directly, mutual funds are a great option.
- Fund managers invest in FGN Bonds and distribute interest to investors.
- You can start with as little as ₦5,000 – ₦100,000.
- Examples: Stanbic IBTC Bond Fund, FBN Bond Fund, ARM Fixed Income Fund.
Steps to Invest in Bond Mutual Funds:
Choose a Bond Mutual Fund
Open an account with the fund manager
Deposit money & start earning returns
Why Invest in FGN Bonds?
Risk-Free Investment: Backed by the Federal Government
Stable & Predictable Returns: Fixed interest payments every 6 months
Long-Term Growth: Good for wealth preservation
Can Be Sold Anytime: Highly liquid in the secondary market
No Tax on Interest Earned