The Federal Government of Nigeria, through the Debt Management Office (DMO), issues bonds through a Primary Market Auction (PMA) conducted on the third or fourth Wednesday of each month. However, after purchase from the Primary market, investors and stockbrokers can resell bonds at the secondary market.

There are two markets for dealing government securities - the primary and secondary markets. Furthermore, bonds are also traded on the floors of the Nigerian Stock Exchange (mostly retail) and the FMDQ OTC Securities Exchange (mostly Wholesale).

The primary market is the market in which Government securities are initially issued for sale while the secondary market is the market for trading previously issued instruments.

Proceeds from the sale of bonds are exempt from withholding tax unlike bank placements. Thus, it is more attractive compared to bank placements or fixed deposits on an annualized basis. Likewise, interest earned on bonds is also non-taxable, hence, tax deductible.

Investment in government bonds is open to the public. Therefore, individuals and corporates alike can invest in bonds.

A minimum subscription of N50.0m is required to purchase FGN bonds as specified by the DMO but you can purchase FGN bonds through Afrinvest Securities Limited with a minimum subscription of only N20.0m.