Debt Management Office launches July savings bond for federal government with 15.716% interest rate

The Debt Management Office has launched the July 2026 FGN Savings Bond subscription, presenting Nigerians with investment opportunities that yield returns of up to 15.716 per cent per annum, the highest interest rate offered so far this year.

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This latest offer is made on behalf of the Federal Government of Nigeria, in accordance with the DMO (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004, as announced by the DMO.

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The subscription period for the July 2026 FGN Savings Bond commenced on 6 July and will close on 10 July 2026, with settlement scheduled to take place on 15 July, thereby providing retail investors with access to low-risk, government-backed securities.

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According to the DMO, the bond issuance aims to provide secure investment options, while also promoting financial inclusion and savings among Nigerians, with the agency emphasizing the safety and liquidity of the instrument.

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The July 2026 offer comprises two distinct bond instruments, designed to cater to varying investor preferences and timelines, including a two-year FGN Savings Bond due 15 July 2028, and a three-year bond due 15 July 2029.

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The two-year FGN Savings Bond offers an annual interest rate of 14.716 per cent, while the three-year bond offers a higher return of 15.716 per cent annually, marking a significant increase in interest rates.

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The new rates represent a more than 94-basis point increase in interest rates over the June Savings Bonds offer, which is one of the sharpest month-on-month increases in the savings bond programme this year.

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In the previous month, the DMO offered the two-year bond at 13.777 per cent per annum and the three-year bond at 14.777 per cent per annum, in June 2026.

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The bonds are priced at N1,000 per unit, with a minimum subscription of N5,000 and a maximum subscription of N50,000,000, providing investors with flexibility in their investment decisions.

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Interest payments on the bonds are made quarterly, on 15 October, 15 January, 15 April, and 15 July, while the principal is repaid in full at maturity via bullet repayment, as noted by the DMO.

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The FGN Savings Bond offers several regulatory, tax, and investment benefits, making it an attractive option for both individual and institutional investors, including pension funds and trustees.

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Institutional investors can participate in the bond offer, given the instruments’ regulatory recognition, and the bonds qualify for tax exemptions under the Companies Income Tax Act and Personal Income Tax Act.

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The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, providing an additional layer of security for investors.

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Furthermore, the bonds are listed on the Nigerian Exchange Limited, allowing investors to trade them on the secondary market, and they also qualify as liquid assets for banks’ liquidity ratio calculations and as eligible securities for trustees investing under the Trustee Investment Act.