Federal Govt Raises N4.678bn In June Savings Bond As Retail Demand Strengthens

The Federal Government raised N4.678 billion from its June 2026 FGN Savings Bond issuance, the Debt Management Office (DMO) said on Wednesday, reflecting stronger retail investor participation in government-backed securities.

The June offer, which ran from June 1 to June 5, comprised two instruments: a two-year bond with a coupon of 13.777 per cent and a three-year bond with a coupon of 14.777 per cent. Combined allotments amounted to N4.678 billion, up from N4.074 billion in May — an increase of about N604 million, or nearly 15 per cent.

Investors showed a clear preference for the longer-tenor issue. The 14.777 per cent FGN Savings Bond due June 2029 attracted N3.802 billion from 2,282 successful subscriptions, accounting for more than 81 per cent of total allotments. The 13.777 per cent bond due June 2028 recorded N876.188 million from 1,254 subscriptions.

The DMO said the results demonstrate sustained confidence in the Federal Government’s retail debt programme, which is designed to give individual Nigerians access to low-risk, fixed-income investments while supporting government financing needs. Both bonds will pay interest quarterly on September 10, December 10, March 10 and June 10 throughout their tenors.

Market analysts said the higher coupon on the three-year bond likely encouraged investors to lock in longer-dated returns amid economic uncertainty, contributing to the strong demand for the longer tenor.

Launched to deepen the domestic debt market and encourage a savings culture, the FGN Savings Bond continues to attract retail investors seeking stable, government-backed returns. The DMO is expected to announce its next monthly savings bond offer as part of its regular issuance calendar.

The FGN Savings Bond is a monthly debt instrument designed to make government securities accessible to individual investors.

The programme allows Nigerians to invest in government debt with relatively small amounts while earning fixed quarterly returns.

Funds raised through the programme are used to support government budgetary requirements and development projects.

The June 2026 issuance outperformed the May offer, reflecting sustained investor appetite for government securities.

The Debt Management Office is expected to announce the next monthly savings bond offer as part of its regular issuance calendar.