The Federal Government has cut the rates on its latest savings bond offer, setting the two-year bond at 13.071 per cent and the three-year instrument at 14.071 per cent per annum.
The Debt Management Office announced the rates in its October 2026 FGN Savings Bond offer circular. The subscription opened on October 5 and will close on October 9, with settlement scheduled for October 14.
The new rates are lower than the ones offered in September. The two-year bond was priced at 14.12 per cent last month, while the three-year instrument carried a rate of 15.12 per cent. Both securities have therefore recorded a 1.049 percentage-point decline in their respective rates.
The three-year bond still offers a higher rate than the two-year instrument, with a one-percentage-point difference between the two securities.
The two-year bond will mature on October 14, 2028, while the three-year instrument will mature on October 14, 2029. Interest on both securities will be paid quarterly on January 14, April 14, July 14 and October 14.
The securities are backed by the full faith and credit of the Federal Government and will be redeemed through bullet repayment at maturity. The FGN Savings Bond is available to retail investors, with each unit priced at N1,000 and a minimum subscription of N5,000.
Investors can subscribe in multiples of N1,000, subject to a maximum subscription of N50m. According to the offer terms, the securities qualify as government securities under relevant tax laws and as eligible investments for trustees under the Trustee Investment Act.
The bonds may also be recognised as liquid assets for banks when calculating their liquidity ratios.
Meanwhile, an analysis of the Debt Management Office’s monthly allotment results showed that about N47.25bn was allotted through the FGN Savings Bond programme between January and September 2026, compared with N36.23bn during the corresponding period of 2025.
The difference represents an increase of about N11.02bn over the same period last year. The October offer is the latest issuance under the Federal Government’s savings bond programme and will close on October 9.