When you buy an FGN bond, you are lending money to the Federal Government of Nigeria. In return, they promise two things:
• Pay you a fixed interest payment every 6 months (called a coupon)
• Return your full original amount when the bond ends (called maturity)
Every 6 months, the government pays you ₦965,000.
In April 2029, they return your ₦10,000,000.
Coupon rate is set when the bond is first issued and never changes. A 19.30% bond always pays 19.30% of face value per year, forever.
YTM (Yield to Maturity) is the real annual return you get if you buy today at today's market price and hold to maturity. It changes daily as market prices move.
Always compare bonds using YTM — not coupon rate. YTM is the true apples-to-apples number.
Face value (principal) is the amount the government returns to you at maturity — typically ₦1,000 per unit.
Price is what you pay today in the market, expressed as a percentage of face value.
• Premium → price above 100. You pay ₦1,070 for a ₦1,000 bond. This happens when the coupon rate is higher than current market rates.
• Discount → price below 100. You pay ₦930 for a ₦1,000 bond. This happens when the coupon rate is lower than current market rates.
When you buy a bond between coupon payment dates, you pay the seller the interest that has been building up since the last coupon was paid. This is called accrued interest.
You still receive the full next coupon — but part of it is simply returning the accrued interest you already paid to the seller.
Smart move: Buy as close as possible to just after a coupon payment date. You pay minimal accrued interest, and the next coupon payment is almost entirely your profit.
The highest coupon rate is not always the best investment.
Focus on three things:
1. YTM — the actual annual return. This is what you compare.
2. Maturity date — when do you want your money back? A 10-year bond pays more but locks up your capital longer.
3. Liquidity — FGN bonds can be sold early on the FMDQ secondary market, but the price you get depends on market conditions that day.
On the maturity date, the DMO credits your account with the face value of your bonds. This is your original principal amount — not inflation-adjusted, not the price you paid.
After maturity, the bond no longer exists. Coupon payments stop. You'll need to reinvest the principal if you want to keep earning.
The Debt Management Office (DMO) is the Federal Government agency responsible for managing Nigeria's national debt.
They issue FGN bonds on behalf of the Federal Government, conduct bond auctions every two months, and guarantee all coupon and principal payments.
Zero default risk: FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria. The government will always pay — this is legally guaranteed.
How to buy:
• Primary market: through your bank or broker at DMO auctions (minimum ~₦50,000,000)
• Secondary market: buy or sell any time through FMDQ-licensed dealers — no minimum, but prices vary
The simplest route for most investors is your bank's app or treasury desk. No stockbroker, no CSCS account, no extra paperwork — your bank handles everything.
ROUTE 1: YOUR BANK APP OR TREASURY DESK
This is how most serious investors in Nigeria buy FGN bonds.
Your bank (if it is a Primary Dealer Market Maker) bids at DMO auctions on your behalf, or sources bonds from the FMDQ secondary market. The bond is held in the bank's custody system and appears in your app with full details — face value, coupon rate, maturity date, and coupon payment dates. Coupons are credited directly to your account every six months.
You never need to open a CSCS account or interact with FMDQ directly. The bank manages everything.
Banks that operate as PDMMs: Standard Chartered, Stanbic IBTC, Zenith Bank, GTBank, Access Bank, First Bank, UBA, Citibank, FCMB, Fidelity Bank, Ecobank.
Minimum investment varies by bank — typically ₦50,000,000 at primary auction. Some banks will sell from their own position in smaller amounts on request.
Best for: Anyone who already banks with a PDMM. Lowest friction, full visibility in your banking app.
ROUTE 2: LICENSED BROKER-DEALERS VIA FMDQ
For investors who want to shop prices across multiple dealers or access the wholesale market directly.
Contact an FMDQ-licensed broker-dealer, request a two-way quote, agree a price, and settle. You will need a CSCS account — this is an electronic bond custody account, separate from your bank. Your broker will open one for you at no cost.
Key players: Coronation Merchant Bank, Chapel Hill Denham, FCMB Capital Markets, Parthian Partners, Afrinvest (₦20,000,000 minimum, lower than the DMO's ₦50M standard).
Best for: Investors who want price discovery across multiple dealers, not just their own bank's quote.
ROUTE 3: FGN SAVINGS BOND (RETAIL ENTRY POINT)
A separate, simpler product designed for everyday Nigerians. Minimum ₦5,000. Tenors of 2–3 years only. Coupons paid quarterly (not semi-annually). Issued monthly by the DMO.
Buy through any NGX-accredited stockbroker, or via the Stanbic IBTC Stockbrokers platform — the DMO's appointed Government Stockbroker. Stanbic IBTC handles the CSCS setup for you.
Note: FGN Savings Bonds are a different product from the FGN Bonds tracked in this app. Rates are lower and tenors are shorter.
Best for: First-time bond investors starting small.
ROUTE 4: DIGITAL PLATFORMS AND MUTUAL FUNDS
Apps like Cowrywise, ARM Investment Managers, and Stanbic IBTC's app offer access to bond mutual funds. Minimum investment can be as low as ₦5,000.
Important distinction: with a mutual fund you do not own the bonds directly. Your money is pooled with other investors and managed by a fund manager. Your return depends on the fund's execution — not the specific YTM you see in this app. Mutual funds are useful for smaller amounts or for diversification, but they are not the same as direct bond ownership.
Best for: Smaller investors, or those who want diversification without managing individual bonds.
THUNDERMONEY AND YOUR BONDS
Whichever route you use, ThunderMoney gives you an independent tracker. Once you know your face value, coupon rate, and maturity date — visible in your bank app — you can record the holding here and track your coupons, returns, and YTM independently of your bank's interface.
FGN Savings Bonds are retail bonds issued monthly by the Debt Management Office (DMO) on behalf of the Federal Government. Unlike regular FGN bonds which require ₦50M+ to buy at auction, Savings Bonds start from just ₦5,000 — making them accessible to every Nigerian professional.
They come in 2-year and 3-year tenors with fixed rates set at each monthly auction.
Unlike regular FGN bonds which pay coupons every 6 months, Savings Bonds pay interest QUARTERLY — every 3 months. This makes them ideal for people who want regular income.
• Quarterly payment: ₦36,412
• Annual income: ₦145,650
• Total over 3 years: ₦436,950 + return of ₦1,000,000 principal
FGN Savings Bonds are listed on the Nigerian Exchange (NGX) and can be sold before maturity through a licensed stockbroker. However the secondary market for Savings Bonds is thin, meaning it may take time to find a buyer and you may not get full value.
If you can, hold to maturity for the full return.
FGN Savings Bonds are sold monthly through DMO-accredited distribution agents — these are licensed stockbroking firms. You cannot buy directly from DMO's website.
Steps:
1. Visit dmo.gov.ng to see the current month's offer rates
2. Contact a DMO-accredited stockbroker (Stanbic IBTC, CardinalStone, ARM Securities etc.)
3. Complete their KYC process if you haven't already
4. Transfer funds and receive your bond certificate
Issued on the 2nd Monday of each month.
Treasury Bills (T-Bills) are short-term government securities issued weekly by the Central Bank of Nigeria (CBN) on behalf of the Federal Government. Unlike bonds, T-Bills do NOT pay coupons. Instead you buy them at a discount to their face value and receive the full face value at maturity.
Tenors available: 91 days, 182 days, 364 days.
T-Bills use discount-based pricing, not coupon rates. The stop rate (discount rate) from the CBN auction tells you how much below face value you pay.
Effective annual yield formula:
Yield = Discount Rate ÷ (1 − Discount Rate × Days/365)
Effective yield = 19% ÷ (1 − 19% × 364/365) = 23.46% annualised
This is why T-Bill effective yields are often higher than the advertised stop rate.
Both are Federal Government instruments with zero default risk. The right choice depends on your goals:
Choose T-Bills if:
• You need your money back within 1 year
• You want to avoid interest rate risk
• You prefer weekly liquidity (new auctions every week)
Choose FGN Bonds if:
• You want to lock in high rates for 3–30 years
• You want predictable semi-annual income
• You have ₦50M+ to invest at primary auction
T-Bills typically yield less than long-term bonds because of the liquidity premium — you pay for the flexibility.
T-Bills are sold at CBN's weekly auction every Wednesday. Results are published Thursday/Friday on cbn.gov.ng.
To buy at primary auction:
• You need a bank or licensed dealer to bid on your behalf
• Minimum investment varies by bank (typically ₦100,000+)
• Contact your bank's Treasury/Fixed Income desk
To buy in the secondary market:
• Available any business day through your bank
• Prices vary from primary auction rates
• Standard Chartered, Stanbic IBTC, GTB all offer T-Bills to retail clients through their banking apps
A Shariah-compliant mutual fund pools money from multiple investors and invests only in assets that meet Islamic finance principles. This means no interest-bearing instruments (bonds, conventional fixed deposits), no alcohol, tobacco, gambling, weapons, or pornography-related stocks.
Instead, Halal funds invest in:
- Sukuk — Islamic bonds based on asset ownership, not debt
- Shariah-screened equities — stocks of companies with permissible business activities and low debt ratios
- Murabaha — cost-plus financing of physical commodities
- Mudarabah/Musharakah — profit-sharing arrangements
All SEC-registered Halal funds in Nigeria have a Shariah Advisory Board that reviews investments and certifies compliance.
Riba refers to any guaranteed, predetermined return on money lent — what we call "interest" in conventional finance. It is prohibited in the Quran (2:275–279) and in Hadith.
The prohibition is not just ethical but practical: riba creates a system where money earns money regardless of whether the underlying business actually prospered. Islamic finance instead links returns to real economic activity — you share in the profit AND the risk.
This means:
- FGN Bonds, savings bonds, and T-Bills are not Halal — they pay fixed interest
- Conventional bank savings accounts are not Halal
- Sukuk and Shariah-screened equity funds ARE Halal alternatives
Sukuk (plural of "sakk") are often called "Islamic bonds" but they work very differently from conventional bonds.
When you buy a conventional bond, you lend money to the government and they pay you interest. With Sukuk, you buy a share of ownership in a specific, tangible asset — a road, a building, equipment. Your return comes from rental income or profits generated by that asset, not from interest.
Nigeria has issued several Sovereign Sukuk since 2017 through the DMO. Several Nigerian asset managers also offer Sukuk mutual funds that pool these instruments.
All Halal funds listed on ThunderMoney are registered with the Securities and Exchange Commission (SEC) Nigeria. This means they are regulated, audited, and required to publish their net asset value (NAV) daily.
How to invest:
- Visit the fund manager's website (linked on each fund card)
- Complete KYC (BVN, ID, address) — usually takes 15–30 minutes online
- Fund your wallet by bank transfer
- Your investment is confirmed typically within 1–2 business days
Minimum investments range from ₦1,000 (UBA Halal Fund) to ₦10,000 — much lower than T-Bills or FGN Bonds.
Liquidity: Most money market and fixed income Halal funds offer same-day or next-day redemption. Equity funds may take 2–3 business days.