By Abiodun Folarin
WorldStage– The Federal Government has opened subscription for its latest Federal Government of Nigeria (FGN) Savings Bond, offering investors annual interest rates of 14.12 per cent and 15.12 per cent on two- and three-year instruments respectively.
The Debt Management Office (DMO), which is offering the bonds on behalf of the Federal Government, said the subscription opened on September 7, 2026 and will close on September 11, 2026.
The two-year FGN Savings Bond, due on September 16, 2028, carries an interest rate of 14.12 per cent per annum, while the three-year bond, maturing on September 16, 2029, offers 15.12 per cent per annum.
Unlike conventional government securities that typically require larger capital outlays, the savings bond is structured to provide retail investors with relatively low-cost access to Federal Government securities.
According to the offer terms, the bonds are priced at N1,000 per unit, with a minimum subscription of N5,000 and subsequent investments in multiples of N1,000. Individual investors can subscribe up to a maximum of N50 million.
The DMO stated that interest on the bonds would be paid quarterly, with coupon payment dates scheduled for December 16, March 16, June 16 and September 16.
The instruments will be settled on September 16, 2026, with the principal repaid in a lump sum at maturity.
The latest offer comes as the Federal Government continues to deepen the domestic investment market by providing retail investors with access to government-backed securities.
The DMO said the FGN Savings Bond qualifies as a security in which trustees can invest under the Trustee Investment Act and also qualifies as a government security under relevant tax laws for tax exemption applicable to pension funds, amongst other investors.
The bond will also be listed on the Nigerian Stock Exchange and qualifies as a liquid asset for liquidity-ratio calculations by banks.
The DMO said the securities are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
Interested investors have been directed to contact stockbroking firms appointed by the DMO as distribution agents for the offer.
