FGN offers retail investors up to 14.8% as June savings bond subscription opens

The federal government, through the Debt Management Office (DMO), has begun subscriptions for its June 2026 Savings Bond, offering retail investors up to 14.8 percent return per annum, even as analysts say yields on fixed-income instruments are still on the downward trend.

The offer, which opened on June 1 and closes on June 5, comprises a 2-year bond at 13.777 percent and a 3-year bond at 14.777 percent, with settlement scheduled for June 10, 2026.

The instrument allows retail investors to participate with a minimum subscription of N5,000, while quarterly coupon payments will be made on September 10, December 10, March 10, and June 10.

Commenting on the offer, investment analyst and financial planner Ayodeji Ebo noted that while the current rates represent a slight improvement, yields on federal government savings bonds have generally been on a declining trajectory in line with broader fixed-income market movements.

“You can start investing with as little as N5,000 in the FGN Savings Bond; however, note that interest rates on FGN Savings Bonds have been trending lower, reflecting the overall decline in the fixed income market,” he said.

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Ebo added that although the June offer shows some improvement, investors should compare alternatives before locking funds into long-dated instruments.
“While the rates improved this month, it’s good to still compare with other safe fixed-income options before locking in funds for 2 or 3 years at the current lower yields,” he said.

The savings bond is backed by the full faith and credit of the federal government and is listed on the Nigerian Exchange Limited, making it tradable in the secondary market.

Market analysts say investors will likely weigh the offer against prevailing Treasury bill yields, particularly the 364-day instruments, which often serve as the benchmark for short-term risk-free returns.

The DMO has maintained that the instrument is designed to deepen financial inclusion by allowing retail investors access to government securities while also providing stable quarterly income.
Interested investors are advised to subscribe through appointed stockbroking firms acting as distribution agents for the offer.