DMO opens September Savings Bond, offers investors up to 15.12%

The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has opened its September 2026 Savings Bond offer, offering investors annual interest rates of up to 15.12%.

The DMO announced the offer in a circular on Monday.

According to the circular, the September offer comprises a two-year bond due on September 16, 2028.

What the DMO is saying

The subscription opened on September 7, 2026, and will close on September 11, with settlement scheduled for September 16.

Interest will be paid quarterly on December 16, March 16, June 16 and September 16, while the principal will be repaid in full at maturity, according to the agency.

The September offer comprises a two-year bond due on September 16, 2028, with an annual interest rate of 14.12%, and a three-year bond due on September 16, 2029, offering 15.12% per annum

The FGNSB is targeted at retail investors seeking exposure to a government-backed investment instrument with quarterly interest payments and a defined maturity date.

Get up to speed

The latest offer comes after the DMO raised N5.86 billion through the FGNSB in August 2026, down from the N6.19 billion raised in July, indicating softer investor demand during the month.

• Nairametrics had earlier reported that the DMO’s August FGNSB offer carried an annual interest rate of up to 14.963%, lower than the rates offered under the latest September issuance.
• The agency earlier unveiled about N4 trillion FGN Bond auction plan for the third quarter (Q3) of 2026.
• Offer ranges widen significantly at this auction, with N600 billion to N800 billion available on both instruments.
• The September 14 auction repeats the same two-bond structure, again ranging from N600 billion to N800 billion per bond.
• Across the quarter, total bond offers stood at approximately N4 trillion, based on the lower ranges of amounts disclosed.

No new bond series appears on the calendar, suggesting DMO is consolidating liquidity around existing benchmarks with a clear preference for medium and long-dated instruments across the three months.

What you should know

DMO issues FGN bonds primarily to fund the government’s huge budget deficits for 2026 and refinance maturing obligations.

• The Federal Government increased its planned borrowing for 2026 to N29.20 trillion following an expansion in the proposed budget size and fiscal deficit.
• The FGN savings bonds are sold at N1,000 per unit, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, subject to a maximum subscription of N50 million.
• The securities are backed by the full faith and credit of the Federal Government of Nigeria and qualify as government securities under relevant tax laws.

The FGNSB also qualifies as an investment instrument for trustees under the Trustee Investment Act and as a liquid asset for banks’ liquidity ratio calculations. The bonds are listed on the Nigerian Exchange.