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Can Federal Government Bonds Lose Value Before Maturity in Nigeria Stock Market?
FGN Bonds do NOT behave like your bank savings. Yes. Their value can go up and down on the screen. The Issuer Your bond is issued by: 👉 Debt Management Office Which means: ✓ backed by Federal Government ✓ considered low risk (in terms of default) Let Me Explain With a Simple Story Mama Ngozi lends ₦Read more
FGN Bonds do NOT behave like your bank savings.
Yes.
Their value can go up and down on the screen.
The Issuer
Your bond is issued by:
👉 Debt Management Office
Which means:
✓ backed by Federal Government
✓ considered low risk (in terms of default)
Let Me Explain With a Simple Story
Mama Ngozi lends ₦5,000 to the government.
The government promises:
• to pay interest every year
• to return ₦5,000 at maturity
That ₦5,000 is called:
👉 Face Value (your real investment)
Oya… Relax Let Me Explain
Why Is It Showing ₦3,800?
That ₦3,800 is:
👉 market value
Not your actual loss.
What Is Market Value?
It is:
✓ what someone is willing to pay NOW if you sell
Key Truth
👉 Bond price moves up and down daily
Why Does Bond Price Drop?
1. Interest Rate Changes (Major Reason)
If new bonds offer higher interest:
• your old bond becomes less attractive
So:
👉 price drops
2. Market Demand
If fewer people want your bond:
👉 price falls
3. Time to Maturity
Longer duration bonds fluctuate more.
VERY IMPORTANT (Don’t Miss This)
Did You Actually Lose Money?
👉 NO — unless you SELL at ₦3,800
If You HOLD Till Maturity
You will receive:
✓ full ₦5,000
✓ plus all your interest
So What You Are Seeing Is:
👉 Unrealized loss
Let Me Be Honest With You
Many people panic because:
• they think bond = fixed value
But in reality:
✓ bond price moves
✓ but maturity value is fixed
When Should You Worry?
Only if:
• you urgently need to sell now
When Should You Relax?
If:
• you can hold till maturity
Simple Truth
• Sell now → you may lose
• Hold → you recover full value
What You Should Do Now
Option 1: Hold
Best for:
✓ long-term investors
Option 2: Sell
Only if:
• you need cash urgently
Final Truth
Your ₦5,000 did not disappear.
It is just:
👉 being priced by the market
Let Me Leave You With This
In investing, there are two values:
• market value (changes daily)
• actual value (what you receive at the end)
Smart investors focus on:
✓ the final value
Not temporary fluctuations.
Rose Ejituru
See lessWhat Is the Difference Between Treasury Bills and FGN Bonds Interest Calculation in Nigeria?
Yes — FGN Bond calculation is different from Treasury Bill calculation. This is exactly why your ₦100,000 at 11% did not give you ₦11,000. Let me explain clearly and simply 👇 🔹 Key Difference Investment How Interest is Paid Treasury Bill Discounted upfront FGN Bond Coupon paid periodically This is tRead more
Yes — FGN Bond calculation is different from Treasury Bill calculation.
This is exactly why your ₦100,000 at 11% did not give you ₦11,000.
Let me explain clearly and simply 👇
🔹 Key Difference
Investment
How Interest is Paid
Treasury Bill
Discounted upfront
FGN Bond
Coupon paid periodically
This is the main reason your calculation looked wrong.
🧮 Treasury Bill Calculation (What You Bought)
Treasury Bills do NOT pay 11% directly.
They use discount rate based on number of days.
Here is the correct formula:
\text{Interest} = \frac{Face\ Value \times Rate \times Days}{365}
Now let’s calculate your case:
Your Details
Amount = ₦100,000
Rate = 11% (0.11)
Tenor = March to April 23 (about 35 days)
Step-by-Step Calculation
Interest:
Interest = 100,000 × 0.11 × 35 / 365
Interest ≈ ₦1,054
👉 This is why you saw ₦1,000 and small fraction
So your investment is actually correct 👍
🧮 FGN Bond Calculation (Different Method)
FGN Bonds use coupon payment:
\text{Coupon Payment} = Face\ Value \times Coupon\ Rate
Example:
₦100,000 at 11% bond
Yearly interest =
100,000 × 11% = ₦11,000
But bonds usually pay:
Semi-annually (2 times per year)
So you receive:
₦11,000 ÷ 2 = ₦5,500 every 6 months
Why Treasury Bill Interest Looks Small
Because:
Treasury bill tenure is short (30–364 days)
Interest is pro-rated based on days
So:
11% is annual rate
You held only 35 days
So you earned only 35 days interest
Simple Rule to Remember
Treasury Bill = Short term + Discount calculation
FGN Bond = Long term + Coupon payment
Your Investment is Actually Good 👍
You invested ₦100k
You earned about ₦1k in ~35 days
That equals roughly:
₦1,000 × 12 ≈ ₦12,000 yearly
That is about 12% annualized return — actually very good.
Since you’re actively investing (you earlier asked about shares and bonds), you’re already building strong financial discipline — similar to how you approach your security job with alertness and planning. Good investors think like that too.
See lessHow Do I Buy FGN Bonds Using Bamboo App in Nigeria?
You cannot directly buy FGN bonds like normal stocks on most apps. Yes. FGN bonds follow a different process. Let Me Explain With a Simple Example Imagine you want to buy land from the government. You don’t just: • open an app • click “BUY LAND” No. You go through: • an agent • a process • documentaRead more
You cannot directly buy FGN bonds like normal stocks on most apps.
Yes.
FGN bonds follow a different process.
Let Me Explain With a Simple Example
Imagine you want to buy land from the government.
You don’t just:
• open an app
• click “BUY LAND”
No.
You go through:
• an agent
• a process
• documentation
That is exactly how FGN bonds work.
Now Let’s Break It Down
1. Can You Buy FGN Bonds on Bamboo?
👉 Short answer: NO (directly).
Bamboo is mainly for:
• stocks (US & Nigerian)
FGN bonds are:
✓ not directly listed for instant purchase like stocks
What This Means
You cannot:
• just log in
• click buy FGN bond
Important Note
Some platforms may later show bond-related products…
But primary FGN bond purchase is not Bamboo’s main function
2. How to Buy FGN Bonds Using ARM Securities Limited
Now this is where it works properly.
Step-by-Step Process
Step 1: Open Investment Account
With ARM (stockbroker account)
You must have:
• BVN
• CSCS account
Step 2: Wait for Bond Offer
FGN bonds are issued by:
Debt Management Office
They come:
✓ periodically (not daily like stocks)
Step 3: Fill Subscription Form
You:
• indicate amount
• choose tenor
Step 4: Make Payment
Transfer money to broker’s account
Step 5: Submission & Allotment
Your broker submits your request
Then:
✓ bonds are allocated to you
Step 6: Credit to CSCS
Your bond is stored in:
Central Securities Clearing System
Step 7: Reflect on Your App
Then it may appear on your dashboard.
Key Fact You Must Understand
FGN Savings Bond:
• minimum starts from about ₦5,000
• maximum up to ₦50 million for retail investors (ARM)
Let Me Be Honest With You
FGN bond is NOT:
• a “click and buy” investment
It is:
✓ a structured investment process
Why It Feels Complicated
Because:
• it goes through brokers
• it involves government issuance
• it is not traded like everyday stocks
Simple Summary
• Bamboo → NOT for direct FGN bond purchase
• ARM → YES (through subscription process)
Final Truth
If you want FGN bonds:
✓ go through a licensed broker
✓ follow the subscription process
Let Me Leave You With This
Before choosing any investment platform, ask:
• What is this app designed for?
Because:
✓ not every app supports every investment
And once you understand that…
Confusion disappears.
Rose Ejituru
See lessWhy Are My FGN Bond Investments Not Reflecting on the InvestNaija App in Nigeria?
If your FGN Bonds for January and March have not reflected on your InvestNaija app, don't panic yet — this is fairly common and usually happens due to one of these reasons: Most Common Reasons 1. Allocation Takes Time After you subscribe to FGN Bonds: Offer closes Allocation is processed Units are cRead more
If your FGN Bonds for January and March have not reflected on your InvestNaija app, don’t panic yet — this is fairly common and usually happens due to one of these reasons:
Most Common Reasons
1. Allocation Takes Time
After you subscribe to FGN Bonds:
Offer closes
Allocation is processed
Units are credited
Then reflected on app
This can take:
5 — 15 working days
Sometimes 2–3 weeks
Especially for bonds issued by the Debt Management Office Nigeria.
2. It May Already Be in Your CSCS (Not Yet Showing in App)
Sometimes:
Your bond is already allocated
But InvestNaija app hasn’t updated
Check:
Your CSCS statement
Email from InvestNaija
Email from Registrar
3. January Bond Should Normally Have Reflected Already
Since you mentioned:
January bond ❌ not reflected
March bond ❌ not reflected
Then January is more concerning (March may still be processing).
So you should take action.
What You Should Do Now (Step-by-Step)
Step 1 — Contact InvestNaija Support
Send message:
Email
Subject
FGN Bond Allocation Not Reflected
Dear InvestNaija Team,
I subscribed to the FGN Bonds for January and March, however, they have not yet reflected on my InvestNaija app.
Kindly assist in confirming the allocation status and advise accordingly.
Below are my details: Name: CSCS Number: Subscription Month: January and March
Thank you.
Step 2 — Check Your Email
Look for:
Allocation notice
Trade confirmation
CSCS credit alert
Step 3 — Request Your CSCS Statement
Ask your broker:
“Please send my updated CSCS statement showing January and March FGN bond allocation.”
This will confirm if it’s already credited.
Important Question (To Help You Better)
Which one did you buy?
FGN Savings Bond (₦5,000 minimum monthly) OR
FGN Regular Bond (₦50 million minimum)
Also:
Did you receive debit confirmation from InvestNaija?
See less