DMO Opens January 2026 FGN Savings Bond Offer at Up to 15.39% Interest

The Debt Management Office (DMO) has opened the Federal Government of Nigeria (FGN) Savings Bond for subscription, offering investors returns of up to 15.39 per cent per annum under its January 2026 issuance.

FGN Savings Bonds are backed by the full faith and credit of the Federal Government of Nigeria, positioning them among the safest fixed-income investment options in the domestic market.

Details of the offer were disclosed by the DMO in its January 2026 FGN Savings Bond issuance notice. The offer comprises two tenors: a two-year bond maturing in January 2028 and a three-year bond maturing in January 2029. Both instruments are structured to attract retail investors while remaining accessible to institutional participants.

The issuance aligns with the Federal Government’s broader strategy to deepen Nigeria’s domestic debt market and promote a culture of savings through secure, long-term investment instruments.

Under the January 2026 offer, investors may subscribe to the two-year FGN Savings Bond, due on January 21, 2028, at an interest rate of 14.396 per cent per annum, or the three-year FGN Savings Bond, due on January 21, 2029, which carries a higher yield of 15.396 per cent per annum.

The subscription period opened on January 12, 2026, and will close on January 16, 2026, with settlement scheduled for January 21, 2026. Interest payments will be made quarterly on April 21, July 21, October 21 and January 21 each year until maturity.

Each bond is priced at N1,000 per unit, with a minimum investment of N5,000. Additional subscriptions can be made in multiples of N1,000, subject to a maximum investment limit of N50 million per investor.

The bonds are listed on Nigerian Exchange Limited (NGX), enabling investors to trade them on the secondary market before maturity should liquidity be required. Interest income from the bonds is tax-exempt for eligible investors, including pension funds and trustees, in line with provisions of the Trustee Investment Act.

Recent FGN Savings Bond issuances have mirrored Nigeria’s persistently high interest rate environment. Throughout 2025, DMO offerings recorded yields largely in the mid-to-high teens, with some approaching 18 per cent per annum, reflecting strong investor appetite for instruments that provide a hedge against inflation amid tight monetary policy conditions.

Within this context, the January 2026 issuance was priced higher than the December 2025 offer. In December, the two-year FGN Savings Bond was issued at 13.565 per cent per annum, while the three-year bond, due on November 12, 2028, offered a yield of 14.565 per cent per annum.