The Debt Management Office (DMO) has opened subscriptions for the February 2026 issuance of the FGN Savings Bond at yearly returns of up to 15.356% as part of the Federal Government’s strategy of deepening retail participation in the domestic debt market.
In a circular issued by the DMO, the February 2026 offer came with two maturity options and followed a similar bond issuance conducted in January this year.
The February 2026 FGN Savings Bond offer consisted of two tenors with competitive interest rates and clearly defined subscription terms.
According to the circular, a 2-year FGN Savings Bond due on February 11, 2028, is offered at an interest rate of 14.356 per cent per annum while the 3-year FGN Savings Bond due on February 11, 2029, was offered on a higher interest rate of 15.356 per cent per annum.
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The offer for the bond opened on February 2, 2026, and will close on February 6, 2026, with settlement scheduled for February 11, 2026 just as coupon payments will be made quarterly on May 11, August 11, November 11, and February 11 during the tenors of the bonds.
Under the offer terms, the DMO’s circular indicated that units were priced at N1,000 per unit, with a minimum subscription of N5,000 and additional investments in multiples of N1,000.
While the DMO offered the FGN Savings bonds at interest rates of up to 15.396 percent per annum in January 2026, the February 2026 offer showed a marginal adjustment in yields compared to the previous month’s issuance.
Investment experts believe that the slight moderation in February rates are indicative of the evolving yield dynamics in the domestic fixed-income market.
On the debt instruments security, the DMO has consistently assured investors that FGN bonds remain the safest form of investment in the domestic debt market.
Specifically, the Office declared that the bonds enjoyed Sovereign Guarantee as the principal and agreed interest payments for FGN bonds are guaranteed by the Federal Government, which implies that the government has an obligation to pay the bondholder as and when due as well as Zero Default Risk as the bonds are classified as a risk-free debt instrument, meaning there is virtually no default risk.
In addition, the bonds are not only backed by the government’s “full faith and credit” but are also “charged upon the general assets of Nigeria”.
As per the bonds legal protections, the DMO maintained that they qualify as securities in which trustees can invest under the Trustee Investment Act; they are classified as government securities for tax exemption purposes for pension funds and other investors under the relevant Company Income Tax Act (CITA) and Personal Income Tax Act (PITA); and that they also count as liquid assets for banks when calculating their liquidity ratios.
