The Debt Management Office (DMO) has opened subscriptions for Federal Government of Nigeria (FGN) Savings Bonds, offering interest rates of up to 15.396% per annum, providing investors with another government-backed investment option.
This is according to details released by the DMO as part of its January 2026 FGN Savings Bond issuance on Monday.
The offer is in line with the Federal Government’s strategy to deepen the domestic debt market while encouraging savings through secure, long-term instruments.
The current issuance features a 2-year bond maturing in January 2028 and a 3-year bond maturing in January 2029, both designed to appeal primarily to retail investors while remaining accessible to institutions.
What the data is saying
Under the January 2026 offer, investors can subscribe to the following instruments:
- 2-Year FGN Savings Bond (due January 21, 2028) at 14.396% per annum
- 3-Year FGN Savings Bond (due January 21, 2029) at 15.396% per annum
The subscription window opened on January 12, 2026, and will close on January 16, 2026, with settlement scheduled for January 21, 2026.
Coupon payments will be made quarterly on April 21, July 21, October 21, and January 21 of each year until maturity.
FGN Savings Bonds are backed by the full faith and credit of the Federal Government of Nigeria, making them one of the safest fixed-income instruments available in the domestic market.
The bonds are offered at N1,000 per unit, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, subject to a maximum of N50 million per investor.
The bonds are listed on the Nigerian Exchange Limited (NGX), allowing investors to sell them in the secondary market before maturity if liquidity is required.
Interest earned on the bonds is also tax-exempt for eligible investors, including pension funds and trustees under the Trustee Investment Act.
Context
Recent FGN Savings Bond issuances reflect the persistently high interest rate environment in Nigeria’s fixed-income market.
- Throughout 2025, DMO offerings recorded yields largely in the mid-to-high teens, with some issuances approaching 18% per annum, underscoring strong investor demand for inflation-hedging instruments amid tight monetary policy conditions.
- Against this backdrop, the January 2026 auction featured higher interest rates compared to the December 2025 offer.
- In December, the 2-year FGN Savings Bond was priced at 13.565% per annum, while the 3-year bond, due November 12, 2028, offered a yield of 14.565% per annum.
Why this matter
For Nigerian investors seeking predictable income and capital preservation, FGN Savings Bonds provide a strong alternative to traditional savings products that often deliver negative real returns.
The combination of government backing, quarterly income, secondary market liquidity, and double-digit yields makes the January 2026 offer particularly attractive in the current macroeconomic climate.
What you should know
FGN Savings Bonds were introduced to promote a savings culture among Nigerians and expand retail participation in the bond market.
The instruments are specifically structured to be affordable for individuals while still meeting institutional investment standards.
Nairametrics has previously reported that elevated yields on government securities have driven increased participation from retail investors seeking safer investment options amid inflationary pressures.
Please explain more about coupons