Why Did My FGN Bond Investment Drop in Value on Afrinvestor App in Nigeria?

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