The Debt Management Office (DMO) has commenced subscriptions for the January 2026 Federal Government of Nigeria (FGN) Savings Bonds, offering investors access to government-backed securities with interest rates reaching 15.396% per annum.
The offer, announced on Monday, forms part of the Federal Government’s ongoing domestic borrowing programme and reflects efforts to mobilise long-term funds from retail and institutional investors while strengthening Nigeria’s local debt market.
FGN Savings Bonds remain a key instrument for promoting financial inclusion, allowing individuals to participate in the sovereign bond market with relatively small capital outlays.
What the data is saying
Under the January 2026 offer, investors can subscribe to the following instruments:
- 2-Year FGN Savings Bond (due January 21, 2028): 14.396% per annum
- 3-Year FGN Savings Bond (due January 21, 2029): 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 on April 21, July 21, October 21, and January 21 of each year until maturity.
Key features
FGN Savings Bonds are backed by the full faith and credit of the Federal Government of Nigeria, making them among the safest fixed-income instruments in the domestic market.
The bonds are priced at ₦1,000 per unit, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000, subject to a maximum subscription of ₦50 million per investor.
They are listed on the Nigerian Exchange Limited (NGX), allowing investors to trade them in the secondary market before maturity if liquidity is required.
Interest earned on the bonds is tax-exempt for eligible investors, including pension funds and trustees under the Trustee Investment Act.
Market backdrop and rate comparison
The January 2026 offer reflects the sustained high-yield environment in Nigeria’s fixed-income market, driven by elevated inflation and tight monetary policy.
Throughout 2025, government securities consistently offered yields in the mid-to-high teens, with some auctions approaching 18% per annum, as investors sought inflation-protected and low-risk assets.
Compared to the December 2025 issuance, the January 2026 bonds were priced higher, indicating upward adjustments in response to prevailing market conditions and investor demand.
Why the offer matters for investors
For investors prioritising capital preservation, steady income, and low risk, the January 2026 FGN Savings Bonds present a compelling option amid volatile economic conditions.
The combination of sovereign backing, regular quarterly income, liquidity via NGX listing, and double-digit yields positions the bonds as a strong alternative to traditional savings products that often struggle to keep pace with inflation.
