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The Debt Management Office (DMO) has opened its October 2026 Federal Government of Nigeria Savings Bond offer, with the three-year instrument offering an interest rate of 14.071% per annum.
This was contained in DMO’s circular issued on Monday.
The rate is lower than the 15.12% offered on the same tenor in September, reflecting changes in the domestic interest-rate environment.
The October offer comprises two-year and three-year bonds, with subscriptions closing on October 9, 2026.
DMO cuts October bond rates
For October, the DMO is offering a two-year FGN Savings Bond due on October 14, 2028, at 13.071% per annum and a three-year bond due on October 14, 2029, at 14.071% per annum.
- The offer opened on October 5, 2026, and will close on October 9.
- Settlement is scheduled for October 14, 2026.
- Interest will be paid quarterly on January 14, April 14, July 14 and October 14.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria.
The October offer gives investors the option of locking in fixed quarterly returns, with the longer-dated bond carrying a 1 percentage-point premium over the two-year instrument.
Retail investors can subscribe from N5,000
The FGN Savings Bond is structured as a retail investment product, with each unit priced at N1,000. Investors can subscribe from N5,000 and increase their holdings in multiples of N1,000, subject to a maximum subscription of N50 million.
- The bonds will be redeemed through a bullet repayment at maturity.
- They qualify as government securities under relevant tax laws and as eligible investments for trustees under the Trustee Investment Act.
- The securities can be recognised as liquid assets for banks’ liquidity ratio calculations.
- The bonds are listed on the Nigerian Exchange Limited, while subscriptions are made through stockbroking firms appointed by the DMO as distribution agents.
The structure allows individual investors to participate in the domestic government securities market through a relatively accessible Federal Government-backed instrument.
Savings bond allotments rise in 2026
The October offer comes amid stronger FGN Savings Bond allotments in 2026, with total allotments increasing during the first nine months of the year.
- FGN Savings Bond allotments reached N47.25 billion between January and September 2026.
- This was N11.02 billion higher than the N36.23 billion allotted during the corresponding period of 2025.
- The increase points to stronger participation in the retail government securities market despite changes in the yields offered during the year.
- The October issue therefore provides investors with another opportunity to access quarterly fixed-income returns through a Federal Government-backed security, with the three-year bond offering the higher coupon of the two available tenors.
- 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.
