The Debt Management Office (DMO) has opened the June 2026 FGN Savings Bond subscription, offering Nigerians investment opportunities with returns of up to 14.777% per annum, compared with the May issuance at up to 14.52% interest.

Other News

The DMO announced the offer on Sunday 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 subscription window runs from June 1 to June 5, 2026, with settlement scheduled for June 10, providing retail investors access to low-risk, government-backed securities.

What the DMO is saying

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

  • The June 2026 offer includes two bond instruments designed to cater to varying investor preferences and timelines. These instruments come with flexible entry requirements and structured returns.
  • A two-year FGN Savings Bond due June 10, 2028, offers 13.777% annual interest
  • A three-year bond due June 10, 2029, offers a higher return of 14.777% annually
  • Bonds are priced at N1,000 per unit, with a minimum subscription of N5,000 and a maximum of N50,000,000
  • Interest payments are made quarterly on September 10, December 10, March 10, and June 10, while the principal is repaid in full at maturity

The FGN Savings Bond comes with several regulatory, tax, and investment benefits, making it attractive to both individual and institutional investors. Institutional investors including pension funds and trustees can participate given the instruments’ regulatory recognition. The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria

More insights

Nairametrics had reported earlier that the DMO announced the May 2026 issuance of FGN Savings Bonds with interest rates of up to 14.525% per annum.

  • The two-year bond due May 13, 2028, offered an interest rate of 13.525% per annum
  • The three-year bond due May 13, 2029, offered a higher rate of 14.525% per annum
  • The subscription window ran from May 4 to May 8, 2026, with settlement on May 13, 2026
  • The programme is structured to deepen the domestic debt market while encouraging retail participation through accessible pricing and predictable returns.
  • The subscription window closes on June 5, 2026, with settlement on June 10, 2026
  • Coupon payments are scheduled quarterly: September 10, December 10, March 10, and June 10
  • The bonds qualify for tax exemptions under the Companies Income Tax Act (CITA) and Personal Income Tax Act (PITA), particularly for Pension Funds

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.

What you should know

The June 2026 rates represent a 25-basis point increase on the three-year tenor and a 25-basis point increase on the two-year tenor compared to the prior month’s offer, continuing a gradual upward trend in savings bond rates.

  • Yields on fixed income instruments have trended upwards in recent months reflecting global risk-off sentiments following the middle east conflict that triggered sell-offs across markets.
  • This is contrary to expectations of analysts looking to see moderation in interest rates across tenors following a considerable degree of stability in exchange rate and the general economy.
  • With yields still elevated at 13.777% and 14.777% respectively, the June offer beats yield expectation of most analysts.

As with previous issuances, record over-subscription to longer tenor is expected as investors continue to strategically lock down yield in the current high-interest-rate environment.  The offer is expected to attract retail investors, cooperatives, and high-net-worth individuals seeking stable, sovereign-backed returns.