How to Invest in FGN Bonds, Interest Rates, and Monthly Income

When people hear the word investment, many Nigerians immediately think of stocks, crypto, or starting a business.
But there is a quiet investment that has helped many salary earners sleep well at night and helped students grow money without stress.

That investment is bonds.

In this guide, you’ll understand what bonds are, how to buy government bonds in Nigeria, interest rates, and the best apps to use, explained as simply as possible.

What Is a Bond?

A bond is a loan you give to the government or a company.

When you buy a bond:

• You lend them money

  
  

• They promise to pay you interest

• They return your money at an agreed date

Think of it like this:

You are the bank. The government is the borrower.

What Are Bonds in Nigeria?

In Nigeria, bonds are mainly issued by:

• The Federal Government of Nigeria (FGN)

• State governments

• Big companies

Most Nigerians invest in government bonds because they are:

• Very safe

• Backed by the government

• Regulated by the Debt Management Office (DMO) and the SEC

Types of Bonds in Nigeria

1. Federal Government of Nigeria (FGN) Bonds

• Long-term bonds (5–30 years)

• Fixed interest payments

• Paid quarterly or semi-annually

• Very low risk

2. FGN Savings Bonds

This is the most beginner-friendly bond in Nigeria.

Features:

• Designed for retail investors

• Low entry amount

• Monthly interest payment

• Backed by the Federal Government

Perfect for:

• Students

• Salary earners

• First-time investors

3. Treasury Bills (T-Bills)

• Short-term government debt

• 91, 182, or 364 days

• Bought at a discount

• Paid once at maturity

Good for:

• Parking money short-term

• Emergency funds

4. Corporate Bonds

• Issued by companies

• Higher interest

• Higher risk than government bonds

Treasury Bonds in Nigeria Explained

Treasury bonds are government debt instruments used to fund national projects.

Difference between Treasury Bills and FGN Bonds:

FGN Bonds Interest Rate in Nigeria

FGN bond interest rates depend on:

• Inflation rate

• Monetary policy

• Economic conditions

Generally:

• Higher inflation = higher bond yields

• Rates are fixed once you invest

This means:

Your income is predictable and stable.

What Is the Interest Rate on Bonds in Nigeria?

Interest rates vary by:

• Bond type

• Tenor

• Market conditions

Typical pattern:

• Treasury Bills: Short-term returns

• FGN Savings Bonds: Moderate monthly income

• FGN Bonds: Higher long-term returns

Do Bonds Pay Interest Monthly?

Yes — some bonds do.

• FGN Savings Bonds → Pay monthly

• FGN Bonds → Quarterly or semi-annual

• Treasury Bills → Pay once at maturity

This makes bonds a passive income source.

When Is the Next FGN Savings Bond?

FGN Savings Bonds are issued every month.

Subscription window:

• Opens once monthly

• Usually mid-month

You can check:

• DMO announcements

• Your stockbroker app

FGN Savings Bond Calculator Explained

A bond calculator helps you estimate:

• Monthly interest

• Total earnings

• Maturity value

Example:
If you invest ₦100,000:

• You earn interest every month

• Your capital is returned at maturity

How Much Money Do I Need to Invest in Bonds?

Minimum amounts:

• FGN Savings Bond: Very affordable

• Treasury Bills: Moderate

• FGN Bonds: Higher minimum

Good news:

You don’t need millions to start.

How Can I Invest in Bonds in Nigeria?

Simple steps:

1. Choose bond type

2. Open a brokerage account

3. Fund your account

4. Buy the bond

5. Receive interest payments

How to Buy Government Bonds in Nigeria Online

You can buy bonds completely online through licensed platforms.

You can:

• Buy from the primary market

• Buy from the secondary market

• Track earnings digitally

Applications You Can Use to Buy Bonds in Nigeria

Popular Nigerian platforms:

• InvestNaija

• I-Invest

• Afrinvest

• Stanbic IBTC

• Meristem

• Bamboo (for global bond ETFs)

All are SEC-regulated.

How to Buy Government Bonds Using an App

1. Download the app

2. Create and verify your account

3. Search for bonds or treasury bills

4. Select amount

5. Confirm purchase

6. Earn interest automatically

Is Investing in Bonds Safe in Nigeria?

Government bonds are among the safest investments in Nigeria because:

• Government-backed

• Regulated

• Predictable returns

Main risk:

• Inflation reduces purchasing power

How Much Money Do I Need to Invest in Bonds?

You can start:

• Small ( #5000 to 5m )

• Grow gradually

• Reinvest interest

Perfect for disciplined investors.

Should Students and Salary Earners Invest in Bonds?

For Students

• Learn investing safely

• Protect small capital

• Earn a steady income

For Salary Earners

• Stable passive income

• Retirement planning

• Emergency fund storage

Advantages of Investing in Bonds

• Low risk

• Predictable income

• Capital protection

• Passive cash flow

• Portfolio stability

Common Bond Investment Mistakes

• Ignoring inflation

• Locking money without planning

• Not diversifying

• Chasing only high rates

 Are Bonds Worth It in Nigeria?

Yes.

Bonds may not make you rich overnight, but they:

• Protect your money

• Pay you consistently

• Help you build wealth steadily

For anyone tired of stress-filled investments, bonds are a smart foundation.

FAQ

How can I invest in bonds in Nigeria?
Through licensed stockbroker apps.

Do bonds pay interest monthly?
Yes, FGN Savings Bonds do.

How much money do I need?
You can start small and grow over time.