Retail investors get access to government-backed bonds amid sustained high interest rate environment
The Debt Management Office (DMO) has opened subscriptions for the January 2026 Federal Government of Nigeria (FGN) Savings Bond, offering investors interest rates of up to 15.396 per cent per annum on government-backed securities.
The offer, announced by the DMO on Monday, forms part of the Federal Government’s ongoing efforts to deepen Nigeria’s domestic debt market while promoting a stronger savings culture through secure and accessible investment instruments.
Under the current issuance, the DMO is offering two bond tenors targeted primarily at retail investors, while remaining open to institutional participation. These include a 2-year FGN Savings Bond maturing on January 21, 2028, and a 3-year bond maturing on January 21, 2029.
According to details released by the DMO, the 2-year bond carries an interest rate of 14.396 per cent per annum, while the 3-year bond offers a higher yield of 15.396 per cent per annum.
The subscription window opened on January 12, 2026, and will close on January 16, 2026, with settlement scheduled for January 21, 2026.
Investors will receive quarterly coupon payments, which will be paid on April 21, July 21, October 21, and January 21 of each year until maturity.
The 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 available in the domestic market.
Each bond is priced at ₦1,000 per unit, with a minimum investment of ₦5,000 and additional subscriptions in multiples of ₦1,000, subject to a maximum investment limit of ₦50 million per investor.
The bonds are also listed on the Nigerian Exchange Limited (NGX), providing investors with the option to trade them in the secondary market should they require liquidity before maturity.
In addition, interest earned on the bonds is tax-exempt for eligible investors, including pension funds and trustees operating under the Trustee Investment Act.
High-yield environment drives investor interest
The January 2026 FGN Savings Bond issuance reflects Nigeria’s persistently high interest rate environment, which has dominated the fixed-income market over the past year.
Throughout 2025, government bond offerings recorded yields largely in the mid-to-high teens, with some issuances nearing 18 per cent per annum, as investors sought inflation protection amid tight monetary policy conditions.
Compared with the December 2025 issuance, the January offer features notably higher rates. The December auction priced the 2-year bond at 13.565 per cent, while the 3-year bond due November 2028 offered 14.565 per cent.
Why it matters
For Nigerian investors seeking capital preservation and predictable income, FGN Savings Bonds continue to provide a compelling alternative to traditional savings products that often deliver negative real returns.
The combination of sovereign backing, quarterly income payments, secondary market liquidity, tax advantages, and double-digit yields makes the January 2026 offer particularly attractive amid ongoing macroeconomic uncertainty.
What to know
FGN Savings Bonds were introduced to encourage broader retail participation in Nigeria’s bond market and to make government securities more accessible to individual investors.
The instruments are structured to remain affordable for small investors while still meeting the standards required by institutional participants.
Rising yields on government securities have also driven increased retail investor participation, as many Nigerians seek safer investment options to hedge against inflation and economic volatility.
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