DMO Opens Subscription for February 2026 FGN Savings Bonds with Yields Up to 15.356%
Bonds
The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has announced the opening of subscriptions for the February 2026 FGN Savings Bond issuance. The offer, which commenced today, February 2, 2026, features two distinct tenors with annual interest rates peaking at 15.356 per cent, as the government continues its efforts to broaden domestic retail participation in the debt market.
Issuance Structure and Subscription Terms
According to the circular issued by the DMO, the February 2026 offer is divided into two categories to cater to varying investor horizons:
2-Year FGN Savings Bond: Due on February 11, 2028, with an interest rate of 14.356% per annum.
3-Year FGN Savings Bond: Due on February 11, 2029, with an interest rate of 15.356% per annum.
The subscription window remains open for five business days, closing on Friday, February 6, 2026. Settlement is scheduled for February 11, 2026, with interest payments distributed quarterly on May 11, August 11, November 11, and February 11.
The bonds are priced at ₦1,000 per unit, with a minimum subscription requirement of ₦5,000 and subsequent investments allowed in multiples of ₦1,000. Maximum subscription for individual investors is capped at ₦50 million.
Comparative Yield Analysis
The February rates reflect a marginal adjustment in yield dynamics within the domestic fixed-income market. In January 2026, the DMO offered savings bonds with interest rates reaching 15.396 per cent per annum. The slight moderation in the February yield suggests a stabilization of interest rates following recent monetary policy adjustments. Despite this marginal decrease, the current rates remain competitively positioned to attract retail investors seeking capital preservation and steady income streams in an inflationary environment.
Regulatory Framework and Security
The FGN Savings Bond is classified as a sovereign debt instrument, backed by the full faith and credit of the Federal Government of Nigeria. It offers several strategic advantages for both individual and institutional investors:
Tax Exemptions: Under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), interest earned on these bonds is exempt from taxation.
Approved Security: It qualifies as a liquid asset for banks’ liquidity ratio calculations and is an approved security for trustees under the Trustee Investment Act.
Market Liquidity: The bond will be listed on the Nigerian Exchange Limited (NGX), allowing for secondary market trading and providing liquidity for investors who may wish to exit before maturity.
Conclusion and Strategic Outlook
The continuous monthly issuance of savings bonds remains a critical component of the Federal Government’s domestic borrowing plan to fund the national budget deficit. For retail investors, the FGN Savings Bond provides a low-risk entry point into the capital market, offering higher returns than standard savings accounts while maintaining high security. Interested participants are advised to contact DMO authorized stockbroking firms to complete their subscriptions before the February 6 deadline.
