FG’s August Savings Bond Offers Up to 14.96% Interest 

The Federal Government, through the Debt Management Office (DMO), has opened subscription for its latest Federal Government of Nigeria (FGN) Savings Bond, offering investors interest rates of 13.963 per cent and 14.963 per cent per annum on two separate maturities.

The offer comes shortly after strong demand was recorded at the DMO’s July 2026 FGN bond auction, where investors submitted N1.74 trillion in bids against N1.2 trillion offered.

The DMO ultimately allotted N929.32 billion, with clearing yields ranging from 18.34 percent to 18.40 percent across the three instruments.

According to the DMO offer circular issued Monday, under the new savings bond offer, the two year FGN Savings Bond, due on August 12, 2028, carries an interest rate of 13.963 per cent per annum, while the three year bond, due on August 12, 2029, offers 14.963 per cent per annum.

The subscription opened on August 3, 2026 and will close on August 7, 2026, with settlement scheduled for August 12, 2026, the offer circular stated.

The bonds will pay interest quarterly, with coupon payment dates scheduled for November 12, February 12, May 12 and August 12.

The latest offer is targeted at investors seeking access to Federal Government securities through a relatively low entry point, with the bonds available at N1,000 per unit.

The minimum subscription is N5,000, with subsequent investments in multiples of N1,000, while the maximum subscription is N50 million.

At the 14.963 per cent annual interest rate attached to the three year bond, a N1 million investment would generate about N149,630 in annual interest, subject to the applicable tax treatment. The quarterly payment would amount to approximately N37,408.

The DMO said the securities are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

The savings bonds also qualify as securities in which trustees can invest under the Trustee Investment Act and as government securities under the relevant provisions of the Companies Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, among other investors.

The bonds are also listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculations for banks.

The DMO stated that interest payments would be made quarterly, while the principal would be repaid through a bullet payment on the maturity date.

The July FGN bond auction provides a recent indication of investor appetite for government securities. The July offer comprised three reopened instruments: the 22.60 per cent FGN January 2035, 16.2499 per cent FGN April 2037 and 15.45 per cent FGN June 2038 bonds, with N400 billion offered on each instrument.

The April 2037 bond attracted the highest level of demand, receiving N665.19 billion in subscriptions, while N381.46 billion was ultimately allotted to investors. The January 2035 and June 2038 bonds received allotments of N245.73 billion and N302.13 billion respectively.

For the August savings bond, the DMO said interested investors should contact the stockbroking firms appointed as distribution agents. The list of distribution agents is available through the DMO.