The Debt Management Office (DMO) has opened subscriptions for the May 2026 FGN Savings Bond on behalf of the Federal Government of Nigeria, offering returns of up to 14.525 per cent to retail investors seeking safe and steady income.
The debt office announced this in a circular on Monday, May 4, stating that the offer comes in two tenors, two-year and three-year FGN Savings Bonds.
It stated that the two-year FGN Savings Bond, due May 13, 2028, carries an interest rate of 13.525 per cent per annum, while the three-year bond, due May 13, 2029, offers a higher return of 14.525 per cent per annum.
Interest on both bonds will be paid quarterly on August 13, November 13, February 13, and May 13 each year until maturity.
According to the offer circular, the bond is backed by the full faith and credit of the Federal government, giving investors a low-risk option with regular earnings.
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It noted that the subscription window opened on May 4, 2026, and will close on May 8, 2026, with settlement for successful applications scheduled for May 13, 2026.
The bonds are priced at ₦1,000 per unit to make them accessible to a wide range of investors, and a minimum subscription is ₦5,000, with additional investments in multiples of ₦1,000, while the maximum subscription is set at ₦50 million.
The bond also offers tax advantages, as it qualifies as a government security under the Company Income Tax Act and the Personal Income Tax Act, making it tax-exempt for pension funds and other eligible investors.
It will be listed on the Nigerian Exchange Limited, allowing investors to trade it on the secondary market, while banks can count it as a liquid asset when calculating liquidity ratios.
It also meets the requirements of the Trustee Investment Act, making it suitable for trustees.
Investors are assured that their full principal will be repaid in a single payment at maturity, with the investment secured by the general assets of Nigeria.
The DMO advised interested investors to contact its appointed stockbroking firms, which serve as distribution agents for the offer.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X