FG raises N6.69 billion from September savings bond at up to 15.12%

The Federal Government has raised N6.69 billion through its September 2026 Savings Bond, offering investors annual interest rates of 14.12% and 15.12% on two- and three-year instruments, respectively.

This is according to the latest circular issued by the Debt Management Office (DMO).

The DMO allotted N1.282 billion on the two-year September 2028 bond and N5.408 billion on the three-year September 2029 instrument.

The offer, which ran from September 7 to 11, 2026, attracted 1,690 subscriptions for the two-year bond and 3,209 subscriptions for the three-year instrument, with settlement scheduled for September 16.

FG raises N6.69bn from September bond

The September issuance comprised two instruments, with the longer-tenor bond attracting the larger share of subscriptions and funds raised.

• The two-year bond carries a 14.12% annual interest rate and will mature on September 16, 2028, while the three-year instrument offers 15.12% and matures on September 16, 2029.
• Interest payments on both instruments will be made quarterly on December 16, March 16, June 16 and September 16.
• The higher coupon on the three-year instrument gives investors an additional return for committing funds for a longer period.

The September result marks an increase from the N5.86 billion raised through the savings bond in August, following N6.19 billion raised in July.

FG savings bond raises N40.5bn

The September issuance brings the Federal Government’s total fundraising through the FGNSB to about N40.5 billion in the first nine months of 2026.

Fundraising through the instrument varied during the period, with the DMO raising N6.341 billion in January, N5.913 billion in February, N3.859 billion in March and N3.639 billion in April.

• The amount raised increased to N4.074 billion in May and N4.678 billion in June.
• July recorded N6.19 billion, while August generated N5.86 billion.
• September’s N6.69 billion represents the highest monthly amount raised since the beginning of the year.

The cumulative figure reflects the total proceeds from the nine monthly issuances.

The FGNSB is designed to give retail investors access to government securities while providing the Federal Government with a channel to raise funds from domestic investors.

The September offer also maintained a higher return for investors who selected the longer-term instrument, with the three-year bond offering 15.12% compared with 14.12% for the two-year bond.

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.
• 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.