By Our Correspondent
The Debt Management Office (DMO) has raised interest rates on its Federal Government of Nigeria (FGN) Savings Bonds for November 2026, offering investors annual returns of up to 14.25 per cent as the government seeks to attract more funds from the retail investment market.
Under the new offer, the three-year savings bond attracts an interest rate of 14.25 per cent, up from 14.071 per cent in October, while the rate on the two-year bond has been increased to 13.25 per cent.
The adjustment provides individual investors with higher fixed returns while increasing the cost of domestic borrowing for the Federal Government.
According to the DMO’s November offer circular issued on Monday, the two-year bond will mature on November 11, 2028, while the three-year instrument will mature on November 11, 2029.
Subscription opened on November 2 and will close on November 6, 2026, with settlement scheduled for November 11.
Interest payments will be made quarterly on February 11, May 11, August 11 and November 11, while investors will receive their full principal investment upon maturity.
The latest increase comes amid growing participation in Nigeria’s retail government securities market.
DMO data showed that allotments under the FGN Savings Bond programme reached N47.25 billion between January and September 2026, representing a 30.4 per cent increase compared with the N36.23 billion recorded during the corresponding period of 2025.
The N11.02 billion increase reflects the growing contribution of individual investors to the Federal Government’s domestic borrowing programme, alongside funding from institutional investors.
Under the November offer, the bonds are priced at N1,000 per unit, with a minimum subscription of N5,000. Additional investments can be made in multiples of N1,000, subject to a maximum subscription of N50 million.
The savings bonds are backed by the full faith and credit of the Federal Government, providing investors with sovereign-backed securities and predetermined interest payments.
They also qualify as eligible investments for trustees under the Trustee Investment Act and are recognised as government securities under applicable tax laws.
The instruments can also be used as liquid assets in calculating banks’ liquidity ratios and are listed on the Nigerian Exchange Limited (NGX).
Interested investors can subscribe through stockbroking firms appointed by the DMO as distribution agents.
For investors weighing the two options, the three-year bond offers a one-percentage-point higher annual return than the two-year instrument. However, it requires an additional year of investment commitment, making the choice dependent on individual financial objectives and liquidity requirements.
The real value of the returns will also depend on prevailing inflation rates and the performance of alternative investment options during the bond’s tenure.
The latest issuance forms part of the Federal Government’s broader domestic borrowing strategy.
The DMO had earlier announced plans to issue approximately N4 trillion in FGN Bonds during the third quarter of 2026, with proposed offer ranges of N600 billion to N800 billion for each of the two instruments included in its auction programme.
The November savings bond offer underscores the government’s continued efforts to mobilise funds from the domestic market while providing individual investors with access to government-backed investment opportunities.
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