DMO opens May 2026 FGN savings bond with 14.525% interest

Nigeria’s domestic debt market is set for another round of retail participation as the Debt Management Office (DMO) has officially opened the May 2026 Federal Government Savings Bond (FGN Savings Bond) offer, with interest rates reaching as high as 14.525 percent per annum. The offer, announced on Monday on behalf of the Federal Government, provides […]

Nigeria’s domestic debt market is set for another round of retail participation as the Debt Management Office (DMO) has officially opened the May 2026 Federal Government Savings Bond (FGN Savings Bond) offer, with interest rates reaching as high as 14.525 percent per annum.
The offer, announced on Monday on behalf of the Federal Government, provides Nigerians with an opportunity to invest in low-risk, government-backed securities at relatively attractive yields.
The subscription window runs from May 4 to May 8, 2026, with settlement scheduled for May 13, 2026.
This issuance is part of the government’s broader strategy to deepen the domestic debt market, expand financial inclusion, and encourage a culture of savings among retail investors.
By offering accessible entry points and predictable returns, the programme continues to attract a wide range of participants, from individuals to cooperatives and institutional investors.
Under the May 2026 offer, the DMO has introduced two bond instruments tailored to different investment horizons.
The first is a two-year bond maturing on May 13, 2028, which offers an annual interest rate of 13.525 percent. The second is a three-year bond due May 13, 2029, with a higher yield of 14.525 percent per annum.
Both instruments are priced at N1,000 per unit, making them accessible to a broad base of investors.
The minimum subscription is set at N5,000, while the maximum investment is capped at N50 million. Interest payments will be made quarterly, providing investors with a steady income stream, while the principal will be repaid in full at maturity.
The DMO emphasized that the FGN Savings Bond remains one of the safest investment options available in the Nigerian market, as it is backed by the full faith and credit of the Federal Government.
This assurance has made the instrument particularly attractive in a climate where investors are increasingly seeking stability amid economic uncertainties.
Notably, the May 2026 offer reflects a slight increase in yields compared to the previous month.
In April 2026, the DMO offered a maximum interest rate of 14.082 percent on its three-year bond, while the two-year bond carried a rate of 13.082 percent. The upward adjustment in rates aligns with broader market trends, where rising interest rates and moderating inflation are influencing fixed-income yields.
The steady increase in returns is expected to boost investor appetite, especially among retail participants looking for secure alternatives to more volatile asset classes. With yields now comfortably above 13 and 14 percent, the bonds offer a compelling proposition for those seeking predictable and stable income.
Beyond returns, the FGN Savings Bond comes with several additional benefits. The instruments are listed on the Nigerian Exchange Limited, allowing investors to trade them on the secondary market if they wish to exit before maturity. This feature enhances liquidity and flexibility, making the bonds more attractive to a wider audience.
Furthermore, the bonds qualify as liquid assets for banks and are recognized as eligible securities for trustees, further strengthening their appeal within the financial system. Pension funds and other institutional investors can also participate, thanks to their regulatory recognition.
From a tax perspective, the bonds enjoy exemptions under relevant provisions of the Company Income Tax Act and the Personal Income Tax Act. This tax advantage effectively boosts the net return for investors, making the instrument even more competitive compared to other fixed-income options.
The DMO noted that the programme is structured not only to raise funds for the government but also to promote inclusive participation in the capital market.
By lowering the entry barrier, the initiative enables everyday Nigerians to benefit from government securities, which were traditionally dominated by institutional investors.