FG raises N5.86bn from Savings Bonds as demand eases

The Federal Government of Nigeria raised N5.86 billion through its August 2026 Federal Government of Nigeria Savings Bond (FGNSB) programme, as reported by the Debt Management Office (DMO) on Thursday. This amount represents a decline from the N6.19 billion raised in July.

The August offer included two-year and three-year savings bonds with interest rates of 13.963% and 14.963%, respectively. The subscription period for the bonds ran from August 3 to 7, with settlement completed on August 12.

The two-year bond, due August 12, 2028, attracted 1,295 subscriptions and recorded an allotment of N1.318 billion. The three-year bond, due August 12, 2029, saw stronger demand with 2,882 subscriptions.

Both bonds provide quarterly coupon payments on November 12, February 12, May 12, and August 12. The August result indicates a decline of about N330 million, or roughly 5.3%, from July, which had offered higher interest rates of 14.716% for the two-year bond and 15.716% for the three-year bond.

Analysts suggest that the weaker performance in August may be due to increased competition from other fixed-income instruments.