LAGOS, Nigeria — Nigeria’s Federal Government raised N4.678 billion (approximately $3 million) through its June 2026 Savings Bond issuance, exceeding the N4.074 billion (approximately $2.6 million) raised in May 2026 and reflecting stronger retail investor participation in government-backed securities.
Okay News reports that allotment results released by the Debt Management Office (DMO) on Wednesday, June 11, 2026, showed the offer, open for subscription from June 1 to June 5, comprised two instruments: a two-year bond with a coupon rate of 13.777% and a three-year bond offering 14.777%.
The 14.777% FGN Savings Bond due June 2029 attracted N3.802 billion (approximately $2.5 million) from 2,282 subscriptions, accounting for more than 81% of total allotments. The 13.777% FGN Savings Bond due June 2028 recorded total allotments of N876.188 million (approximately $570,000) from 1,254 successful subscriptions.
Combined allotments of N4.678 billion represent an increase of approximately N604 million, or nearly 15%, from the N4.074 billion raised in May 2026. Both instruments will pay interest quarterly on September 10, December 10, March 10, and June 10 throughout their respective tenors.
The strong demand for the three-year bond suggests investors are willing to lock in higher returns over a longer investment horizon. The higher coupon rate on the three-year instrument likely influenced investor preference, offering relatively attractive yields compared to shorter-term alternatives.
The FGN Savings Bond programme was introduced to deepen the domestic debt market and encourage a savings culture by giving retail investors direct access to government securities. The bonds are backed by the full faith and credit of the Federal Government, making them among the safest investment options available to retail investors. Funds raised through the programme support government budgetary requirements and development projects.
The DMO is expected to announce the next monthly savings bond offer as part of its regular issuance calendar.
