The Debt Management Office (DMO) has officially opened subscriptions for the January 2026 Federal Government of Nigeria (FGN) Savings Bonds, offering investors interest rates of up to 15.396% per annum, further expanding government-backed investment options for both retail and institutional participants.
The announcement, made on Monday, is part of the Federal Government’s ongoing strategy to deepen the domestic debt market and encourage long-term savings through secure, government-backed instruments.
The current issuance features two tenors designed to appeal primarily to retail investors: a 2-year bond maturing on January 21, 2028, and a 3-year bond maturing on January 21, 2029. Under the January 2026 offer, the bonds are priced as follows: 2-Year FGN Savings Bond (maturing January 21, 2028): 14.396% per annum; 3-Year FGN Savings Bond (maturing 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 are structured to be paid quarterly on April 21, July 21, October 21, and January 21 until maturity.
FGN Savings Bonds are fully backed by the Federal Government of Nigeria, making them one of the safest fixed-income instruments in the domestic market.
Bonds are offered at N1,000 per unit, with a minimum subscription of N5,000 and additional multiples of N1,000, subject to a maximum of N50 million per investor.
The instruments are also listed on the Nigerian Exchange Limited (NGX), providing investors with an option to liquidate holdings on the secondary market before maturity if required. Interest earned on the bonds is tax-exempt for eligible investors, including pension funds and trustees under the Trustee Investment Act.
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Recent trends in FGN Savings Bond issuances highlight persistently high yields in Nigeria’s fixed-income market. In 2025, DMO offerings regularly recorded yields in the mid-to-high teens, with some issues approaching 18% per annum, reflecting strong investor appetite for inflation-hedging instruments amid tight monetary policy.
The January 2026 offering features slightly higher rates compared to the December 2025 auction, which offered 13.565% per annum on the 2-year bond and 14.565% per annum on the 3-year bond.
Experts note that FGN Savings Bonds provide Nigerian investors with predictable income and capital preservation, making them a compelling alternative to traditional savings products, which often deliver negative real returns in high-inflation environments.
The combination of government backing, quarterly income, secondary market liquidity, and double-digit yields enhances the attractiveness of the January 2026 issuance.
Since their introduction, FGN Savings Bonds have been instrumental in promoting a culture of savings among Nigerians while expanding retail participation in the domestic bond market.
Analysts highlight that elevated yields on government securities have been a key factor driving increased retail participation as investors seek safer, inflation-protected investment options.
This issuance is expected to attract significant interest from retail and institutional investors looking for a secure, high-yield investment amid Nigeria’s evolving macroeconomic landscape.