DMO opens July 2026 FGN Savings Bond offer at 15.716% interest, highest in 2026

The Debt Management Office (DMO) has opened the July 2026 FGN Savings Bond subscription, offering Nigerians investment opportunities with returns of up to 15.716% per annum, the highest interest rate compared with the previous issuances since this year.

The DMO announced the offer on behalf of the Federal Government of Nigeria, pursuant to the DMO (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004.

The subscription window runs from July 6 to July 10, 2026, with settlement scheduled for July 15, providing retail investors access to low-risk, government-backed securities.

What the DMO is saying:

The DMO stated that the bond issuance is part of ongoing efforts to provide secure investment options while promoting financial inclusion and savings among Nigerians. The agency also emphasized the safety and liquidity of the instrument.

• The July 2026 offer includes two bond instruments designed to cater to varying investor preferences and timelines.
• A two-year FGN Savings Bond due July 15, 2028, offers 14.716% annual interest.
• A three-year bond due July 15, 2029, offers a higher return of 15.716% annually.
• This indicates more than 94 basis points increase in interest rates over the June Savings Bonds offer.
• Bonds are priced at N1,000 per unit, with a minimum subscription of N5,000 and a maximum of N50,000,000.
• Interest payments are made quarterly on October 15, January 15, April 15, and July 15, while the principal is repaid in full at maturity via bullet repayment.

The FGN Savings Bond comes with several regulatory, tax, and investment benefits, making it attractive to both individual and institutional investors. Institutional investors including pension funds and trustees can participate given the instruments’ regulatory recognition. The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

More insights:

At the June 2026 issuance, DMO offered the two-year FGN Savings Bonds due June 10, 2028, at an interest rate of 13.777% per annum.

• The three-year bond due June 10, 2029, offered a higher rate of 14.777% per annum.
• The subscription window ran from June 1 to June 5, 2026, with settlement on June 10, 2026.
• The bonds qualify for tax exemptions under the Companies Income Tax Act (CITA) and Personal Income Tax Act (PITA), particularly for Pension Funds

The bonds are listed on the Nigerian Exchange Limited, allowing investors to trade them on the secondary market. They also qualify as liquid assets for banks’ liquidity ratio calculations and as eligible securities for trustees investing under the Trustee Investment Act.

What you should know

The July 2026 rates represent roughly a 94-basis point jump on both the two-year and three-year tenors compared to the prior month’s offer, marking one of the sharpest month-on-month increases in the savings bond programme this year.

• Yields on fixed income instruments have continued to trend upwards, reflecting sustained tightening in the domestic money market and elevated benchmark rates across the fixed income space.
• The sharper-than-usual repricing suggests the DMO is moving quickly to keep the retail savings bond competitive against rising NTB and OMO rates.
• With yields now at 14.716% and 15.716% respectively, the July offer significantly beats expectations built on the gradual, incremental increases seen in prior months.
• As with previous issuances, strong subscription to the longer tenor is expected as investors continue to lock down yield in the current high-interest-rate environment. The offer is expected to attract retail investors, cooperatives, and high-net-worth individuals seeking stable, sovereign-backed returns.

Interested investors should contact the stockbroking firms appointed as Distribution Agents by the DMO available at its website.