By Seun Ibiyemi
The Debt Management Office (DMO) has increased the interest rate on its three-year Federal Government of Nigeria (FGN) Savings Bond to 14.25 per cent per annum in its November 2026 offer, providing retail investors with higher returns on government-backed securities.
The new rate represents an increase from the 14.071 per cent offered on the same tenor in October, reflecting improved yields available to investors in the retail government securities market.
According to the DMO’s November offer circular issued on Monday, the latest issuance comprises two-year and three-year savings bonds, with subscriptions opening on November 2 and closing on November 6, 2026.
Under the offer, the two-year FGN Savings Bond, due on November 11, 2028, carries an interest rate of 13.25 per cent per annum, while the three-year instrument, due on November 11, 2029, offers 14.25 per cent.
Both interest rates are 0.179 percentage points higher than the corresponding rates offered in October.
The settlement date for the November issuance is November 11, 2026, while interest payments will be made quarterly on February 11, May 11, August 11 and November 11 throughout the tenor of the bonds.
The FGN Savings Bond is backed by the full faith and credit of the Federal Government, with investors entitled to receive their principal in full upon maturity.
Each unit of the bond is priced at N1,000, with a minimum subscription of N5,000. Investors can increase their holdings in multiples of N1,000, subject to a maximum subscription of N50 million.
The securities are designed to provide individual investors with access to government-backed fixed-income investments and predictable quarterly interest payments.
The bonds also qualify as eligible investments for trustees under the Trustee Investment Act and as government securities under relevant tax laws. They can also be recognised as liquid assets for banks’ liquidity ratio calculations.
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Additionally, the instruments are listed on the Nigerian Exchange Limited (NGX), while subscriptions are processed through stockbroking firms appointed by the DMO as distribution agents.
The November offer comes amid increased allotments in the FGN Savings Bond market during the first nine months of 2026.
Data from an earlier report by Nairametrics showed that allotments reached N47.25 billion between January and September 2026, representing an increase of N11.02 billion compared with the N36.23 billion recorded during the corresponding period of 2025.
The growth suggests increased participation and allotments in the retail government securities market, despite fluctuations in the interest rates offered during the year.
Meanwhile, the DMO had earlier unveiled an approximately N4 trillion FGN Bond issuance plan for the third quarter of 2026, with offer ranges significantly widened to between N600 billion and N800 billion for each of the two instruments.
The latest savings bond issuance provides another opportunity for retail investors to earn fixed quarterly returns from Federal Government-backed securities, with the three-year instrument offering a higher annual interest rate than the two-year option.
With subscriptions scheduled to close on November 6, investors seeking exposure to government securities have five days to participate in the November offer.
