The Debt Management Office (DMO) has opened the July 2026 FGN Savings
Bond subscription, offering Nigerians investment opportunities with returns of
up to 15.716 per cent per annum.
The latest offering marks the highest interest rate compared with previous
issuances since the beginning of the year.
The DMO announced the offer on behalf of the Federal Government of Nigeria,
pursuant to the DMO (Establishment) Act 2003 and the Local Loans
(Registered Stock and Securities) Act, CAP. L17, LFN 2004.
According to the agency, the subscription window opened on 6 July and will
run until 10 July 2026, with settlement scheduled for 15 July, providing retail
investors access to low-risk, government-backed securities.
“The bond issuance is part of ongoing efforts to provide secure investment
options while promoting financial inclusion and savings among Nigerians,” the
DMO stated, while emphasising the safety and liquidity of the instrument.
The July 2026 offer includes two distinct bond instruments designed to cater to
varying investor preferences and timelines. The first is a two-year FGN Savings
Bond due 15 July 2028, which offers a 14.716 per cent annual interest. The
second is a three-year bond due 15 July 2029, offering a higher return of 15.716
per cent annually.
The new rates indicate more than a 94-basis point increase in interest rates over
the June Savings Bonds offer, marking one of the sharpest month-on-month
increases in the savings bond programme this year. In June 2026, the DMO
offered the two-year bond at 13.777 per cent per annum and the three-year bond
at 14.777 per cent per annum.
The bonds are priced at N1,000 per unit, with a minimum subscription of
N5,000 and a maximum subscription of N50,000,000.
“Interest payments are made quarterly on 15 October, 15 January, 15 April, and
15 July, while the principal is repaid in full at maturity via bullet repayment,”
the DMO noted.
The FGN Savings Bond comes with several regulatory, tax, and investment
benefits, making it attractive to both individual and institutional investors.
Institutional investors, including pension funds and trustees, can participate
given the instruments’ regulatory recognition.
The bonds qualify for tax exemptions under the Companies Income Tax Act and
Personal Income Tax Act, particularly for pension funds. They are backed by
the full faith and credit of the Federal Government of Nigeria and charged upon
the general assets of Nigeria.
Furthermore, the bonds are listed on the Nigerian Exchange Limited, allowing
investors to trade them on the secondary market. They also qualify as liquid
assets for banks’ liquidity ratio calculations and as eligible securities for trustees
investing under the Trustee Investment Act.