The Debt Management Office (DMO) has announced the opening of the July 2026 FGN Savings Bond subscription, presenting Nigerians with investment opportunities offering returns of up to 15.716% per annum. This interest rate stands as the highest compared to previous issuances throughout 2026.

The DMO, acting on behalf of the Federal Government of Nigeria, made the announcement in accordance with the DMO (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004.

The subscription period for these government-backed securities commenced on July 6, 2026, and will close on July 10, 2026. Settlement for successful subscriptions is scheduled for July 15, 2026, providing retail investors with access to low-risk investment options.

The DMO highlighted that this bond issuance is part of ongoing efforts to offer secure investment avenues while simultaneously fostering financial inclusion and encouraging savings among Nigerians. The agency also underscored the inherent safety and liquidity of the instrument.

The July 2026 offer features two distinct bond instruments tailored to accommodate varying investor preferences and time horizons. A two-year FGN Savings Bond, maturing on July 15, 2028, provides an annual interest rate of 14.716%.

For those seeking a longer-term commitment, a three-year bond due on July 15, 2029, offers a higher annual return of 15.716%. These rates represent more than a 94 basis points increase in interest rates compared to the June Savings Bonds offer.

Each bond unit is priced at N1,000, with a minimum subscription requirement of N5,000 and a maximum subscription limit of N50,000,000. Interest payments are disbursed quarterly on October 15, January 15, April 15, and July 15, while the principal amount is repaid in full at maturity through a bullet repayment.

The FGN Savings Bond comes with several regulatory, tax, and investment advantages, making it appealing to both individual and institutional investors. Institutional investors, including pension funds and trustees, are eligible to participate given the instruments’ regulatory recognition. The bonds are fully backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.

During the June 2026 issuance, the DMO offered the two-year FGN Savings Bonds due June 10, 2028, at an interest rate of 13.777% per annum. The three-year bond due June 10, 2029, was offered at a rate of 14.777% per annum.

The subscription window for the June offer ran from June 1 to June 5, 2026, with settlement on June 10, 2026. These bonds qualify for tax exemptions under the Companies Income Tax Act (CITA) and Personal Income Tax Act (PITA), particularly beneficial for Pension Funds.

The bonds are listed on the Nigerian Exchange Limited, facilitating secondary market trading for investors. They also serve as liquid assets for banks' liquidity ratio calculations and as eligible securities for trustees investing under the Trustee Investment Act.

The July 2026 rates demonstrate approximately a 94-basis point jump on both the two-year and three-year tenors compared to the previous month's offer. This marks one of the sharpest month-on-month increases observed in the savings bond programme this year.

Yields on fixed income instruments have continued their upward trajectory, reflecting sustained tightening within the domestic money market and elevated benchmark rates across the fixed income landscape. This sharper-than-usual repricing indicates the DMO's proactive approach to maintain the competitiveness of the retail savings bond against rising Nigerian Treasury Bills (NTB) and Open Market Operations (OMO) rates.

With current yields at 14.716% and 15.716% respectively, the July offer significantly surpasses expectations based on the gradual, incremental increases seen in prior months. Strong subscription to the longer tenor is anticipated as investors aim to secure higher yields in the prevailing high-interest-rate environment. The offer is expected to attract retail investors, cooperatives, and high-net-worth individuals seeking stable, sovereign-backed returns.

Prospective investors are advised to contact the stockbroking firms designated as Distribution Agents by the DMO, a list of which is available on its official website.