The Federal Government has reduced the interest rates on its latest savings bond offer, with investors set to earn 13.071 per cent on the two-year instrument and 14.071 per cent on the three-year bond.
The Debt Management Office, DMO, announced the rates in its October 2026 FGN Savings Bond offer circular released on Monday.
The three-year bond rate represents a decline from the 15.12 per cent offered on the same tenor in September.
The October offer opened on October 5 and will close on October 9, with settlement scheduled for October 14.
The two-year FGN Savings Bond, maturing on October 14, 2028, carries a coupon of 13.071 per cent per annum, while the three-year instrument, due on October 14, 2029, offers 14.071 per cent annually.
Interest payments on both bonds will be made quarterly on January 14, April 14, July 14 and October 14.
The securities are backed by the full faith and credit of the Federal Government and offer investors an opportunity to earn fixed quarterly income through government-backed investments.
The three-year bond offers a one-percentage-point premium over the two-year instrument.
The FGN Savings Bond is targeted at retail investors seeking access to government securities, with each unit priced at N1,000 and a minimum subscription of N5,000.
Investors can increase their holdings in multiples of N1,000, subject to a maximum subscription of N50 million.
The bonds will be redeemed through bullet repayment at maturity and qualify as government securities under relevant tax laws and eligible investments for trustees under the Trustee Investment Act.
They may also be recognised as liquid assets for banks in the computation of liquidity ratios.
The latest offer comes amid increased demand for FGN Savings Bonds in 2026.
Between January and September, allotments reached N47.25 billion, representing an increase of N11.02 billion compared with the N36.23 billion allotted during the corresponding period in 2025.
The increase points to stronger participation in the retail government securities market despite fluctuations in yields during the year.
