FG Raises N6.69bn From September Savings Bond As 3-Year Rate Hits 15.12%
The Federal Government has raised N6.69 billion from its September 2026 savings bond issuance, with investors subscribing more heavily to the three-year instrument despite its longer maturity.
According to the latest circular by the Debt Management Office (DMO), the government allotted N1.282 billion through the two-year bond and N5.408 billion through the three-year instrument.
The September offer was open from September 7 to 11, with settlement scheduled for September 16.
The three-year bond offered an annual interest rate of 15.12 per cent, while the two-year instrument carried a rate of 14.12 per cent.
The two-year bond will mature on September 16, 2028, while the three-year instrument will mature on September 16, 2029.
The longer-tenor instrument accounted for about 81 per cent of the total amount raised during the September offer.
It attracted 3,209 subscriptions, compared with 1,690 subscriptions recorded for the two-year bond.
Interest on both instruments will be paid quarterly on December 16, March 16, June 16 and September 16.
The higher rate offered on the three-year bond gives investors an additional one percentage point in annual interest compared with the two-year instrument.
The September result takes the Federal Government’s total proceeds from the savings bond to about N40.5 billion in the first nine months of 2026.
The government raised N6.341 billion in January, N5.913 billion in February, N3.859 billion in March and N3.639 billion in April.
Proceeds increased to N4.074 billion in May and N4.678 billion in June, before rising to N6.19 billion in July and N5.86 billion in August.
September’s N6.69 billion is the highest monthly amount raised through the savings bond so far this year.
The FGNSB provides retail investors with access to government securities while giving the Federal Government a channel to raise funds from domestic investors.
The bonds are sold at N1,000 per unit, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, subject to a maximum subscription of N50 million.
The securities are backed by the full faith and credit of the Federal Government of Nigeria and qualify as government securities under relevant tax laws.
The September rates are also higher than those offered in August, when the maximum annual interest rate on the savings bond was 14.963 per cent.