Nigeria: Savings Bonds at 15.12%, Subscription Open Until 11 September

According to the official DMO circular, the first bond will mature on 16 September 2028 and will pay an annual coupon of 14.12%. The second, with a three-year term, will mature on 16 September 2029 with an annual rate of 15.12%.

The bonds are offered at 1,000 nairas per unit, with a minimum subscription of 5,000 nairas. Investors can then subscribe in multiples of 1,000 nairas, up to a limit of 50 million nairas per investor for this offer.

Settlement is scheduled for 16 September. Interest will be paid quarterly, on 16 December, 16 March, 16 June, and 16 September, while the principal will be repaid in a single payment at the maturity of the respective bond.

An Offer Aimed at Retail Investors

The FGN Savings Bond is designed as a savings instrument accessible to individuals. The DMO specifies that the bonds are guaranteed by the federal government of Nigeria and are listed on the Nigerian Exchange, distinguishing them from a simple bank savings product.

This new issuance follows an August 2026 offer that provided slightly lower yields. According to Nairametrics, the DMO raised 5.86 billion nairas through the August savings bonds, compared to 6.19 billion nairas in July.

The increase in coupons in September sets the maximum yield at 15.12% per year. This comes as Abuja continues to tap the domestic market to finance its budget needs and refinance some of its maturities, while seeking to broaden the base of domestic investors.

Closing Friday, Settlement on 16 September

Interested investors must go through brokerage firms designated as distribution agents by the DMO. The agency notes that the bonds can notably be held by retail investors and benefit from the status of public securities under Nigerian regulations.

The subscription window closes on Friday 11 September, with settlement five days later. The two- and three-year bonds will then pay interest at the announced rates until their respective maturities in September 2028 and September 2029.