The Nigerian government has launched a new round of Federal Government of Nigeria (FGN) Savings Bonds, offering investors a 15.39% per annum interest rate. The Debt Management Office (DMO) announced the offer as part of its January 2026 issuance, featuring a 2-year bond maturing in January 2028 and a 3-year bond maturing in January 2029. These bonds are backed by the full faith and credit of the Federal Government of Nigeria, making them a secure fixed-income investment option in the domestic market.
The current issuance is designed to appeal to retail investors, while also being accessible to institutions. The offer is in line with the government’s strategy to deepen the domestic debt market and encourage savings through secure, long-term instruments. Under the January 2026 offer, investors can subscribe to either the 2-Year FGN Savings Bond at 14.396% per annum or the 3-Year FGN Savings Bond at 15.396% per annum.
The subscription window opened on January 12, 2026, and will close on January 16, 2026, with settlement scheduled for January 21, 2026. Coupon payments will be made quarterly, and the bonds are offered at N1,000 per unit, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, subject to a maximum of N50 million per investor.
The bonds are listed on the Nigerian Exchange Limited (NGX), allowing investors to sell them in the secondary market before maturity if needed. Interest earned on the bonds is also tax-exempt for eligible investors, including pension funds and trustees under the Trustee Investment Act. Recent FGN Savings Bond issuances reflect the high interest rate environment in Nigeria’s fixed-income market, with yields largely in the mid-to-high teens.
The January 2026 auction featured higher interest rates compared to the December 2025 offer, which saw the 2-year FGN Savings Bond priced at 13.565% per annum and the 3-year bond at 14.565% per annum. This increase underscores strong investor demand for inflation-hedging instruments amid tight monetary policy conditions. With the subscription window now open, investors can take advantage of this secure investment opportunity, which offers attractive returns and contributes to the development of Nigeria’s domestic debt market.
