DMO cuts FGN Savings Bond rates as October subscription opens

DMO cuts FGN Savings Bond rates as October subscription opens

By Segun Odunewu, Lagos

The Debt Management Office (DMO) has opened subscription for the October 2026 Federal Government of Nigeria (FGN) Savings Bond, offering investors annual interest rates of 13.071 per cent and 14.071 per cent on two-year and three-year instruments respectively.

The offer, which opened on Monday, October 5, will close on October 9, with settlement scheduled for October 14, 2026. The DMO’s latest publication confirms that the October Savings Bond offer has been released.

The three-year bond, maturing on October 14, 2029, carries a 14.071 per cent annual interest rate, while the two-year instrument, due on October 14, 2028, offers 13.071 per cent.

The latest rates represent a significant decline from September, when the three-year bond attracted 15.12 per cent and the two-year instrument offered 14.12 per cent.

Interest on both instruments will be paid quarterly on January 14, April 14, July 14 and October 14, while principal will be repaid at maturity.

The securities are backed by the full faith and credit of the Federal Government and are designed primarily as a retail investment vehicle, allowing individuals to participate in the domestic government securities market.

Each unit is priced at N1,000, with a minimum subscription of N5,000 and subsequent investments in multiples of N1,000, subject to a maximum subscription of N50 million. The bonds are listed on the Nigerian Exchange, with subscriptions processed through DMO-appointed stockbroking firms.

Financial market analysts say the reduction in coupon rates reflects the changing direction of yields in the domestic fixed-income market.