May 05, (THEWILL) — The Debt Management Office (DMO) has opened subscriptions for the May 2026 Federal Government of Nigeria (FGN) Savings Bond, offering investors annual returns of up to 14.525 percent.
Announced on Monday on behalf of the Federal Government, the offer is part of ongoing efforts to provide Nigerians with secure, low-risk investment options while promoting a savings culture and financial inclusion.
The subscription window runs from May 4 to May 8, 2026, with settlement scheduled for May 13. The bonds are backed by the federal government, making them attractive to retail investors seeking stable returns.
The May offer features two instruments tailored to different investment horizons. A two-year bond due May 13, 2028, offers 13.525 percent interest per annum, while a three-year bond maturing on May 13, 2029, offers a higher return of 14.525 percent annually. Units are priced at ₦1,000, with a minimum subscription of ₦5,000 and a maximum of ₦50 million. Interest is paid quarterly, and the principal is repaid in full at maturity.
The new rates are higher than those offered in April 2026, when the DMO issued bonds with maximum yields of 14.082 percent. The increase reflects broader market conditions, including rising interest rates and moderating inflation, which have boosted demand for fixed-income securities.
Beyond returns, the FGN Savings Bond programme is designed to deepen the domestic debt market and encourage wider retail participation through accessible entry requirements and predictable income streams. The bonds are listed on the Nigerian Exchange, allowing for secondary market trading, and they qualify as liquid assets for banks.
They also enjoy tax exemptions under relevant laws and are eligible for investment by pension funds and other institutional investors, enhancing their appeal across market segments.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
