Nigeria's FGN Savings Bond Opens at 15.716% Interest Rate

FGN Savings Bond: Highest Interest Rate Since January

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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. This marks the highest interest rate compared to previous issuances since the beginning of the year.

According to the DMO, the subscription window opened on 6 July and will run until 10 July 2026, with settlement scheduled for 15 July. The bond is designed to cater to varying investor preferences and timelines, with two distinct instruments available.

One of the bonds is a two-year FGN Savings Bond due 15 July 2028, offering a 14.716 per cent annual interest. The second is a three-year bond due 15 July 2029, with a higher return of 15.716 per cent annually. 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. 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.

The DMO noted that 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.

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.

FGN Savings Bond Details

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. The agency emphasized the safety and liquidity of the instrument, stating that the bond issuance is part of ongoing efforts to provide secure investment options while promoting financial inclusion and savings among Nigerians.