The Debt Management Office (DMO) has raised N5.86 billion through the Federal Government of Nigeria Savings Bond (FGNSB) in its August 2026 auction, marking a modest decline from the N6.19 billion raised in July. The latest figure shows that while retail investor participation remains active, demand for the government’s savings bonds eased slightly compared with the previous month.
According to the DMO’s August allotment results released on Thursday, the offer was open to investors from August 3 to 7, with settlement completed on August 12. Investors were offered two-year and three-year savings bonds carrying interest rates of 13.963 per cent and 14.963 per cent, respectively. The two-year bond, which matures on August 12, 2028, attracted 1,295 subscriptions and secured an allotment of N1.318 billion.
The three-year instrument proved more popular, recording 2,882 subscriptions and an allotment of N4.545 billion. Both bonds will pay investors quarterly coupons on November 12, February 12, May 12 and August 12, giving retail investors a predictable income stream throughout the investment period. The stronger demand for the longer-term bond suggests some investors were willing to lock in their funds for a higher return despite the longer maturity.
The August result also puts the latest borrowing above the N4.678 billion raised in June and the N4.074 billion recorded in May. However, it fell below July’s N6.193 billion, when the two-year and three-year bonds offered higher interest rates of 14.716 per cent and 15.716 per cent. The decline in August therefore comes alongside a reduction in the coupon rates offered to investors, which may have influenced overall subscription levels.
The FGNSB remains an important channel for bringing individual and small-scale investors into Nigeria’s government securities market, while also helping the Federal Government mobilise funds locally. Compared with larger fixed-income instruments that can require greater capital or access to the primary market, savings bonds are designed to make government securities more accessible to retail investors. Despite its growing role, the instrument remains a relatively small part of the country’s domestic debt portfolio, with FGN bonds accounting for N63.45 trillion, or 76.56 per cent of total domestic debt. The August performance highlights the government’s continued push to deepen the domestic debt market and attract a wider pool of investors beyond major institutional players.
source: The guardian
