The Federal Government has reduced the interest rate on its three-year FGN Savings Bond to 14.071 per cent for the October 2026 offer, down from 15.12 per cent offered to investors in September.
The latest rate represents a 1.049 percentage-point reduction as yields in Nigeria’s domestic fixed-income market adjust to changing interest-rate and liquidity conditions.
Key Highlights
- The three-year FGN Savings Bond rate fell from 15.12% in September to 14.071% in October.
- The two-year bond is offered at 13.071% per annum.
- Subscriptions opened October 5 and close October 9, 2026.
- Both instruments are scheduled for settlement on October 14, 2026.
- Interest is paid quarterly, with maturities on October 14, 2028 and October 14, 2029.
October FGN Savings Bond Rates and Dates
The Debt Management Office (DMO), in an offer circular issued on Monday, said subscriptions for the October FGN Savings Bond would open on October 5 and close on October 9, 2026.
The offer comprises two-year and three-year FGN Savings Bonds. The shorter-term instrument carries an annual interest rate of 13.071 per cent, while the three-year bond offers 14.071 per cent.
The two-year bond is scheduled to mature on October 14, 2028, while the three-year instrument will mature on October 14, 2029. The three-year bond offers investors a one percentage-point premium for committing their funds for an additional year.
Settlement for both instruments is scheduled for October 14, 2026. Investors will receive interest payments quarterly on January 14, April 14, July 14 and October 14 each year until the respective bonds mature.
The offer details and rate reduction were reported by Nairametrics.
What Investors Should Know
The FGN Savings Bond is targeted largely at retail investors, giving individuals and smaller investors access to Federal Government securities and fixed returns over a specified investment period. The securities are backed by the full faith and credit of the Federal Government.
The reduction in the three-year rate comes amid changing conditions in the domestic interest-rate environment, where yields respond to monetary policy decisions, liquidity conditions and developments in the fixed-income market. Through its monthly Savings Bond programme, the DMO mobilises funds from retail investors while offering them an opportunity to invest directly in government securities.
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Investors have until October 9 to subscribe to either instrument. Those choosing the three-year bond will earn 14.071 per cent annually, compared with 13.071 per cent for the two-year instrument, with returns paid quarterly until maturity.
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