DMO raises Savings Bond returns, sets November 6 subscription deadline
Agency Report
Investors in Nigeria’s fixed-income market are expected to weigh the latest Federal Government Savings Bond offer following an increase in interest rates by the Debt Management Office (DMO), with the three-year instrument now offering an annual return of 14.25 per cent.
The November 2026 offer, which opened on Monday, November 2, provides investors with an opportunity to lock in fixed returns through two-year and three-year Federal Government of Nigeria (FGN) Savings Bonds.
The new rates represent an increase from the October offer, when the DMO offered 13.071 per cent on the two-year bond and 14.071 per cent on the three-year instrument.
For the November issuance, the two-year bond, which will mature on November 11, 2028, carries an interest rate of 13.25 per cent per annum, while the three-year instrument, due on November 11, 2029, offers 14.25 per cent.
The offer circular issued by the DMO stated that subscriptions would close on November 6, with settlement scheduled for November 11, 2026.
The three-year bond offers a one-percentage-point premium over the two-year instrument, providing an additional incentive for investors willing to keep their funds invested for a longer period.
Interest payments on both instruments will be made quarterly on February 11, May 11, August 11 and November 11 throughout the life of the bonds.
Each unit is priced at N1,000, with a minimum subscription of N5,000. Investors can increase their holdings in multiples of N1,000, subject to a maximum subscription of N50 million.
The bonds are backed by the full faith and credit of the Federal Government, making them an option for investors seeking fixed-income instruments with sovereign backing.
They also qualify as eligible investments for trustees under the Trustee Investment Act and as government securities under relevant tax laws. In addition, the securities can be recognised as liquid assets for banks’ liquidity ratio calculations.
The November offer comes against the backdrop of increased allotments in the FGN Savings Bond market during the first nine months of 2026.
Data from earlier reports indicate that allotments reached N47.25 billion between January and September 2026, representing an increase of N11.02 billion over the N36.23 billion recorded in the corresponding period of 2025.
The latest offer also follows the DMO’s earlier announcement of an approximately N4 trillion FGN Bond issuance plan for the third quarter of 2026, with auction offer ranges widened significantly to between N600 billion and N800 billion for each of the two instruments.
Market attention is expected to focus on subscription levels before the November 6 deadline, particularly whether the higher rates will translate into increased demand for the new instruments.
For investors prioritising predictable cash flow, the quarterly interest payments provide an opportunity to earn regular income while retaining exposure to a Federal Government-backed security.
