Nigeria’s fixed-income market offers several government-backed instruments that allow individuals and institutions to lend money to the Federal Government in exchange for payments over the life of the instrument.
These instruments are among the safest investment options available in the country because they carry the full faith and credit of the Federal Government of Nigeria. However, they differ significantly in structure, duration, return style, currency, and suitability for different types of investors.
In this article, we will examine the major Federal Government fixed-income securities available in Nigeria: Treasury Bills, FGN Bonds (Naira), FGN Savings Bonds, FGN Sukuk, FGN Dollar Bonds, and Green Bonds. We will look at how each one works, how returns are determined, the typical tenor, the level of risk and liquidity, and which kind of investor or investment purpose each is best suited for.
“FGN Savings Bonds are best suited for salaried workers, small savers, and first-time
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