Investor demand for Federal Government of Nigeria (FGN) Savings Bonds declined in November 2026, with the Debt Management Office (DMO) allotting N5.06 billion, representing a 17.4 per cent drop from the N6.12 billion raised in October.
The decline followed reduced subscriptions for both the two-year and three-year government savings instruments, indicating weaker investor participation in the Federal Government’s monthly retail borrowing programme.
Key Highlights
- DMO raises N5.06 billion through FGN Savings Bonds in November.
- Total allotment drops by 17.4 per cent from N6.12 billion recorded in October.
- Two-year bond attracts N746.01 million in subscriptions.
- Three-year bond records N4.31 billion in allotments.
- Interest rates remain attractive at 13.25% and 14.25% for the two-year and three-year bonds, respectively.
- Three-year savings bond accounts for approximately 85 per cent of November’s total allotment.
DMO Records Decline in November Savings Bond Subscriptions
Results published by the DMO showed that the November offer attracted N746.01 million for the two-year savings bond and N4.31 billion for the three-year instrument.
The total allotment was approximately N1.06 billion below October’s figure, despite the government offering annual interest rates of 13.25 per cent and 14.25 per cent on the two-year and three-year bonds, respectively.
The November offer opened on November 2 and closed on November 6, with settlement completed on November 11.
Two-Year FGN Savings Bond Records Lower Demand
A breakdown of the results showed that the two-year November 2028 bond attracted 968 subscriptions, compared with 1,261 subscriptions recorded for the corresponding instrument in October.
The amount allotted to the two-year bond also declined from N1.02 billion in October to N746.01 million in November.
The figures indicate a reduction in both the number of investors participating in the offer and the total amount allocated to the shorter-term government security.
Three-Year Bond Accounts for 85% of Total Allotment
Similarly, the three-year November 2029 bond recorded 2,390 subscriptions, down from 2,678 subscriptions received for the October 2029 instrument.
Its allotment also declined from N5.11 billion to N4.31 billion, despite offering investors a higher annual interest rate of 14.25 per cent.
The three-year instrument accounted for approximately 85 per cent of the total amount allotted in November, maintaining its position as the more popular option among the two investment instruments.
The latest figures indicate that the decline in investor participation affected both bond categories rather than being limited to the shorter-term instrument.
Read also:
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- Nigeria’s Domestic Debt Hits ₦87tn as Treasury Bills Drive Borrowing Increase
What Investors Should Know About FGN Savings Bonds
FGN Savings Bonds are designed to provide individual investors with access to government securities through relatively affordable investment thresholds.
The instruments offer periodic interest payments, while the principal investment is repaid at maturity, making them an option for individuals seeking fixed-income investment opportunities.
The bonds also enable the Federal Government to raise funds from retail investors as part of its domestic borrowing programme.
The DMO conducts savings bond offers monthly, determining the applicable interest rates and investment tenors for each issuance.
The November figures highlight a moderation in demand for the government’s retail debt instruments, despite the interest rates offered to investors.
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