Three-year bond dominates demand as Nigerians flock to secure double-digit returns amid growing appetite for safer investments…..
The Debt Management Office (DMO) has successfully allotted N4.074 billion through its May 2026 Federal Government of Nigeria (FGN) Savings Bond auction, with investors showing overwhelming interest in the longer-tenor offering.
Details released by the DMO on Friday revealed that the three-year savings bond attracted the bulk of investor demand, accounting for more than 78 percent of the total subscriptions recorded during the exercise.
The savings bond offer, which was opened to investors between May 4 and May 8, 2026, was officially settled on May 13.
According to the auction results, the 13.525% FGN Savings Bond maturing on May 13, 2028, recorded total subscriptions worth N884.857 million from 1,459 successful investors.
However, the stronger momentum came from the 14.525% FGN Savings Bond due May 13, 2029, which attracted a massive N3.189 billion across 2,085 subscriptions, making it the clear favourite among investors seeking higher long-term returns.
Combined subscriptions for both instruments pushed the total allotment to N4.074 billion.
The bonds were issued at N1,000 per unit, with the DMO maintaining a minimum subscription threshold of N5,000 and a maximum investment cap of N50 million per investor.
To further attract retail investors, the DMO confirmed that coupon payments on the bonds will be made quarterly throughout the duration of the instruments. Payment dates are scheduled for August 13, November 13, February 13, and May 13 annually.
The latest issuance ranks among the highest-yielding offers under the FGN Savings Bond programme this year, with returns reaching as high as 14.525 percent per annum.
The strong investor turnout highlights increasing appetite for relatively secure investment options as Nigerians continue to navigate inflationary pressures and uncertainty in other segments of the financial market.
Introduced to encourage wider retail participation in Nigeria’s debt market, the FGN Savings Bond programme was designed to make government-backed investments more accessible to individuals and small institutions.
Because the instruments are fully backed by the Federal Government of Nigeria, they continue to appeal to investors looking for stable and predictable returns with lower risk exposure.
The latest performance may also signal growing confidence in government securities, especially as investors search for safer alternatives capable of preserving value in a challenging economic environment.
