The Debt Management Office (DMO) has opened subscriptions for two Federal Government of Nigeria (FGN) Savings Bonds, offering investors a chance to earn annual interest rates of up to 14.963%. The bonds, priced at N1,000 per unit, require a minimum investment of N5,000 and are available until August 7, 2026.
Bond Details and Subscription Period
The offer opened on August 3, 2026, and will close on August 7, 2026, with settlement scheduled for August 12, 2026. Investors can purchase units in multiples of N1,000, up to a maximum subscription of N50 million. The first bond is a two-year FGN Savings Bond due August 12, 2028, with an annual interest rate of 13.963%. The second is a three-year FGN Savings Bond maturing on August 12, 2029, offering 14.963% per annum.
Interest payments are made quarterly on November 12, February 12, May 12, and August 12, with the principal repaid in full on the maturity date. The DMO emphasized that the bonds are backed by the full faith and credit of the Federal Government of Nigeria, charged upon the general assets of the country, and carry no default risk.
Investor Benefits and Tax Exemptions
The FGN Savings Bonds qualify as securities in which trustees can invest under the Trustee Investment Act, according to the DMO. They also meet the criteria for government securities under the Companies Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemptions for pension funds and other qualified investors.
Additionally, the bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for banks' liquidity ratio calculations. This makes them an attractive low-risk investment option for individuals and institutions seeking stable returns.
How to Subscribe
Interested investors are advised to contact any of the DMO's appointed stockbroking firms to subscribe before the August 7 deadline. The DMO's offer document states: "Units of sale: N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000."
"Interest payment: Payable quarterly. Redemption: Bullet repayment on the maturity date," the document adds.
Context: Government's Borrowing Strategy
The bond issuance is part of the Federal Government's broader strategy to finance infrastructure projects and manage public debt. The DMO's move comes amid ongoing debates about Nigeria's fiscal policies, with critics calling for more transparency in government borrowing and spending.
Earlier, former Vice President Atiku Abubakar called on the Federal Government to publish a full breakdown of its power sector debt payments, following disclosures by the Association of Power Generation Companies (APGC) that cast doubt on official claims of settlement. The APGC Executive Secretary Joy Ogaji had disclosed that the widely publicized N501 billion bond had not been fully disbursed to generation companies.
Despite these concerns, the FGN Savings Bonds remain a popular choice for risk-averse investors, offering a guaranteed return backed by the government. With interest rates higher than many fixed deposit options, they provide a competitive alternative for savers looking to grow their money.
For those interested, the subscription window is short, closing on August 7, 2026. Investors are encouraged to act promptly to secure their investment in these government-backed securities.
