The Federal Government raised N5.86 billion through its August 2026 Federal Government of Nigeria Savings Bond (FGNSB) offer, representing a decline in retail investor participation compared with the N6.19 billion raised in July.
The Debt Management Office (DMO) said in its latest allotment circular that the August offer comprised two-year and three-year FGNSB instruments, with interest rates of 13.963 per cent and 14.963 per cent, respectively.
The August proceeds amounted to about N330 million, or 5.3 per cent, below the N6.193 billion raised through the July Savings Bond offer.
The latest subscription exercise was conducted between August 3 and 7, with settlement completed on August 12.
According to the DMO, the two-year savings bond, which carries an interest rate of 13.963 per cent and matures on August 12, 2028, attracted 1,295 subscriptions, resulting in an allotment of N1.318 billion.
The three-year instrument, offering a higher interest rate of 14.963 per cent and maturing on August 12, 2029, recorded stronger demand.
It attracted 2,882 subscriptions and generated an allotment of N4.545 billion.
Combined, the two instruments raised N5.863 billion for the Federal Government.
The subscription figures showed a clear preference for the three-year savings bond, which accounted for more than three-quarters of the total amount raised during the August offer.
The stronger demand for the longer-term instrument may be linked to its higher interest rate, which was one percentage point above the two-year bond.
Coupon payments for both instruments are scheduled quarterly on November 12, February 12, May 12 and August 12.
The August decline came after stronger investor participation in July, when the government raised N6.193 billion through two FGNSB instruments.
The July offer also carried higher interest rates, with the two-year bond priced at 14.716 per cent and the three-year instrument at 15.716 per cent.
The Federal Government’s Savings Bond programme has recorded varying levels of participation in recent months.
In June 2026, the DMO raised N4.678 billion, compared with N4.074 billion in May, showing fluctuations in demand for the retail investment instrument.
The FGNSB is one of the instruments used by the Federal Government to mobilise funds from domestic investors and finance its borrowing requirements.
Government bonds continue to dominate Nigeria’s domestic debt portfolio.
FGN bonds accounted for N63.45 trillion, representing 76.56 per cent of total domestic debt. Nigerian Treasury Bills followed with N16.57 trillion, equivalent to 19.99 per cent.
FGN Sukuk accounted for N1.19 trillion, while Savings Bonds stood at N116.21 billion.
Promissory Notes amounted to N1.39 trillion, comprising N300.41 billion in naira-denominated notes and N1.08 trillion in foreign-currency-denominated notes.
The latest August result highlights the continuing importance of the retail bond market to the Federal Government’s domestic financing strategy, even as investor appetite responds to changes in interest rates and prevailing market conditions.
