MON AUG 03 2026-theGBJournal| The Federal Government today opened subscriptions for its August 2026 Federal Government Savings Bond (FGNSB), offering annual yields of up to 14.96 per cent as it seeks to broaden retail participation in the domestic debt market while locking in funding at still-elevated interest rates.
The offer, unveiled by the Debt Management Office (DMO) today, comprises a two-year bond due August 12, 2028, carrying a coupon of 13.96 per cent per annum, and a three-year bond maturing August 12, 2029, with a higher annual coupon of 14.96 per cent.
Interest will be paid quarterly, providing investors with a regular income stream.
Subscriptions opened immediately and will close on August 7, 2026, with the bonds scheduled to be issued on August 12.
The savings bond programme is designed to give retail investors access to sovereign debt with relatively low entry requirements.
Investors can purchase the securities in units of ₦1,000, subject to a minimum subscription of ₦3,000, and thereafter in multiples of ₦1,000, up to a maximum subscription of ₦50 million.
For investors, the offering provides exposure to risk-free sovereign securities at yields that remain attractive against inflation expectations, while offering predictable quarterly cash flows.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria, making them among the safest naira-denominated investment instruments available in the domestic market.
Beyond individual investors, the securities carry regulatory advantages that enhance their appeal to institutional participants.
The bonds qualify as approved investments for trustees under the Trustee Investment Act, are recognised as liquid assets for banks’ liquidity ratio calculations, and will be listed on the Nigerian Exchange (NGX), providing investors with the opportunity to trade the securities in the secondary market after issuance.
The latest offer comes as the DMO continues to diversify the government’s domestic funding base by encouraging wider household participation in the sovereign debt market, while giving small investors access to government securities that were once largely the preserve of institutional investors.
The programme also supports financial inclusion by allowing Nigerians to build savings through low-denomination, fixed-income investments backed by the sovereign.
Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
