FGN Bonds

FGN Bonds are debt instruments issued by the Federal Government of Nigeria as a vehicle to raise funds for capital projects. The investor lends an amount of money to the government and earns interest (every 6 months) on the investment until the maturity of the bond when the principal amount will be repaid. Clients can access the market via the monthly primary market auction conducted by the Debt Management Office (DMO) on behalf of the Federal Government. However, clients who have the capacity of N100mn (standard trading volume) can purchase from the secondary market.

At the auction, the (DMO) determines volumes sold and the rate its sells to all investors using the single price auction system , and they are usually issued for tenors of: 3yrs, 5yrs, 7yrs, 10yrs and 20yrs.



  • Ideal for investors with long term investment horizon as it offers a stable (coupon payment) cash flow every 6 months and the principal investment is also recouped at end of investment period
  • Nominal return currently above inflation, thereby offering a positive real return on investment.
  • It serves as risk-free investment as it is guaranteed by the Federal Government
  • The interest income is tax exempt
  • It is highly liquid and can be used as collateral
  • Vibrant, liquid and transparent secondary market for ease of entry and exit for investors with portfolio of standard trading volumes (N100mn)

To participate at the primary market auction, kindly visit any of our branches and submit your application stating your Diamond Bank account number, investment amount, preferred tenor and bid yield.

The tenors available at the primary market will be communicated through the account officer at the branch.

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