The Debt Management Office (DMO), acting on behalf of the Federal Government of Nigeria (FGN), has opened subscriptions for the February 2026 issuance of the FGN Savings Bond, offering investors returns of up to 15.356 per cent per annum.
The offer was disclosed in a circular issued by the DMO outlining the bond’s tenors, interest rates, and subscription timeline.
The savings bond is part of the Federal Government’s ongoing strategy to deepen retail participation in the domestic debt market while providing individuals with a low-risk investment option.
The February 2026 offer comes with two maturity options and follows a similar issuance conducted in January, reflecting the government’s continued reliance on savings bonds to mobilise domestic funds.
What the data is saying
The February 2026 FGN Savings Bond offer consists of two tenors with competitive interest rates and clearly defined subscription terms.
- A 2-year FGN Savings Bond due on February 11, 2028, is offered at an interest rate of 14.356 per cent per annum.
- A 3-year FGN Savings Bond due on February 11, 2029, carries a higher interest rate of 15.356 per cent per annum.
- The offer opened on February 2, 2026, and will close on February 6, 2026, with settlement scheduled for February 11, 2026.
- Coupon payments will be made quarterly on May 11, August 11, November 11, and February 11 throughout the life of the bonds.
Under the offer terms, units are priced at N1,000 per unit, with a minimum subscription of N5,000 and additional investments in multiples of N1,000.
More Insights
The February offer reflects a marginal adjustment in yields compared to the previous month’s issuance.
- In January, the DMO offered FGN Savings Bonds with interest rates of up to 15.396 per cent per annum.
- The slight moderation in February rates suggests evolving yield dynamics in the domestic fixed-income market.
- Despite the adjustment, the February rates remain relatively high, maintaining the bond’s attractiveness to retail investors.
Interest payments on the bonds will be made quarterly, while the principal will be redeemed in full through a bullet repayment on the maturity date.
What you should know
The FGN Savings Bond comes with several regulatory and investment advantages designed to enhance investor confidence.
- The bond qualifies as an approved security for trustees under the Trustee Investment Act.
- It is recognised as a government security under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making it eligible for tax exemption for pension funds and other qualified investors.
- The bond will be listed on the Nigerian Stock Exchange, improving liquidity and enabling secondary market trading.
- It also qualifies as a liquid asset for banks’ liquidity ratio calculations.
The security is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the country’s general assets, providing a high level of safety for investors.
The DMO advised interested investors to contact stockbroking firms appointed as distribution agents, noting that the full list of authorised agents is available on the DMO’s website.
