The Debt Management Office (DMO) of Nigeria has increased the interest rates on its Savings Bond offerings, providing investors with higher returns on their investments. The new rates, which took effect on November 2, 2026, offer 13.25 per cent per annum on the two-year bond and 14.25 per cent on the three-year instrument. This development is expected to attract more investors to the fixed-income market.
The November 2026 offer provides investors with an opportunity to lock in fixed returns through two-year and three-year Federal Government of Nigeria (FGN) Savings Bonds. The bonds, which are backed by the full faith and credit of the Federal Government, are an option for investors seeking fixed-income instruments with sovereign backing. The minimum subscription is N5,000, with each unit priced at N1,000.
The interest rates on the Savings Bonds have increased from the October offer, when the DMO offered 13.071 per cent on the two-year bond and 14.071 per cent on the three-year instrument. The three-year bond offers a one-percentage-point premium over the two-year instrument, providing an additional incentive for investors willing to keep their funds invested for a longer period.
According to the offer circular issued by the DMO, subscriptions for the Savings Bonds will close on November 6, 2026, with settlement scheduled for November 11, 2026. Interest payments on both instruments will be made quarterly on February 11, May 11, August 11, and November 11 throughout the life of the bonds.
The bonds have a maximum subscription of N50 million, and investors can increase their holdings in multiples of N1,000. The DMO has set a deadline of November 6, 2026, for subscriptions, after which the offer will close. Investors who are interested in the Savings Bonds can invest in multiples of N1,000.
The Savings Bonds are a type of government security that provides investors with a fixed income and a relatively low-risk investment option. The bonds are suitable for investors who are seeking a stable source of income and are willing to hold their investments for a fixed period.
The increased interest rates on the Savings Bonds are expected to attract more investors to the fixed-income market, providing the government with a stable source of funding for its activities. The DMO's decision to increase the interest rates is a positive development for investors, who can now earn higher returns on their investments.
Key points
- The DMO has increased the interest rates on its Savings Bond offerings to 13.25 per cent and 14.25 per cent per annum for the two-year and three-year instruments, respectively.
- The subscription deadline for the November 2026 offer is November 6, 2026, with settlement scheduled for November 11, 2026.
- The bonds are backed by the full faith and credit of the Federal Government, making them a low-risk investment option for investors.
