DMO rolls out higher-yield bonds as investors eye safe, government-backed returns amid rising interest rates….
The Debt Management Office (DMO) has opened subscriptions for the Federal Government of Nigeria (FGN) Savings Bonds for May 2026, offering attractive returns of up to 14.525 per cent per annum.
Announced on Monday, the offer provides retail investors with access to low-risk, government-backed securities, as part of ongoing efforts to deepen the domestic debt market and encourage a culture of savings.
The subscription window runs from May 4 to May 8, 2026, with settlement scheduled for May 13.
According to the DMO, the programme is designed to promote financial inclusion while providing secure and accessible investment opportunities for Nigerians across income levels.
This month’s issuance features two bond options tailored to different investment horizons.
The first is a two-year FGN Savings Bond maturing on May 13, 2028, offering an annual interest rate of 13.525 per cent. The second is a three-year bond due May 13, 2029, with a higher yield of 14.525 per cent.
Both instruments are priced at N1,000 per unit, with a minimum subscription of N5,000 and a maximum investment cap of N50 million. Interest payments will be made quarterly, while the principal will be repaid in full at maturity.
The latest offer reflects a slight increase in yields compared to the April 2026 issuance, where rates peaked at 14.082 per cent. Analysts say the upward adjustment is likely to attract stronger investor interest, particularly in a high-interest-rate environment.
Beyond the returns, the bonds come with several advantages. They are listed on the Nigerian Exchange, allowing investors to trade them on the secondary market, and they qualify as liquid assets for banks as well as approved securities for trustees.
In addition, the instruments enjoy tax exemptions under relevant provisions of the Company Income Tax Act and Personal Income Tax Act, further enhancing their appeal.
The DMO noted that the structure of the programme is aimed at broadening participation in government securities, especially among retail investors, cooperatives, and pension funds.
With yields above 13 and 14 per cent, the bonds are expected to draw interest from individuals seeking stable income streams, particularly as inflation shows signs of moderating and fixed-income instruments regain appeal.
As the deadline approaches, market watchers say sustained investor turnout will depend on confidence in macroeconomic stability and continued competitive pricing in the debt market.
For now, the May issuance signals the government’s continued push to mobilise domestic capital while offering Nigerians a relatively safe avenue to grow their wealth.
