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Goodness Oluchi
Asked: 2026-04-08T20:40:38+00:00 In:

Investing and wealth building

Please I want to be clarified on this FGN BOND on your reply on Facebook, I used the Afrinvestor app to buy the Bond, there was nothing like equity fund or what so ever, just confused on how the amount dropped drastically. Would have loved to send screenshots of the bond but unfortunately it’s not enabled. Can you please clear me the more because am lost already. Thank you

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  1. Ochoyoda
    Contributor

    I understand your concern — this is a very common confusion when investing in FGN Bonds, especially through apps like Afrinvest. Let me break this down clearly. First — Important Question You're saying: You bought FGN Bond Then your amount dropped drastically You didn’t see anything like equity fundRead more

    I understand your concern — this is a very common confusion when investing in FGN Bonds, especially through apps like Afrinvest.
    Let me break this down clearly.
    First — Important Question
    You’re saying:
    You bought FGN Bond
    Then your amount dropped drastically
    You didn’t see anything like equity fund
    You’re confused
    This usually happens for one of these 3 reasons:
    1. Bond Price Fluctuation (Most Likely)
    When you buy FGN Bonds, you’re buying from the secondary market, not directly from the Federal Government of Nigeria.
    That means:
    Bond prices go up and down daily
    Your app shows market value, not your final value
    So when interest rates rise, bond price drops
    This is normal and not a loss unless you sell.
    Example:
    You invested ₦100,000
    Market price drops
    App shows ₦92,000
    You didn’t lose money unless you sell now
    If you hold till maturity:
    You get full principal back
    Plus interest payments (coupon)
    2. Accrued Interest Adjustment (Also Very Common)
    When buying bonds:
    You sometimes pay accrued interest upfront
    After settlement:
    App adjusts value
    It may look like your money dropped
    But actually:
    You’ll get that interest back at next coupon payment
    3. Settlement / Charges Adjustment
    Some apps show:
    Brokerage fee
    Stamp duty
    Transaction charges
    These can cause a small drop, but not drastic.
    Important: FGN Bond is NOT Equity Fund
    You’re correct:
    FGN Bond ≠ Equity fund
    FGN Bond = Fixed income investment
    Equity fund = Stock-based investment
    So you won’t see equity fund if you bought bond.
    The Most Important Thing to Check
    Tell me:
    What was the amount you invested
    What is the current value
    When did you buy it (month/year)
    I’ll tell you exactly what happened.
    Don’t Panic Yet
    FGN bonds are among the safest investments in Nigeria:
    Backed by government
    Predictable income
    Low risk

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