FG to Raise N800 Billion in February Bond Auction as Yields Hover Near 20%

The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced that retail investors subscribed over N5.9 billion to the February 2026 Federal Government Savings Bond issuance. The subscription covered two- and three-year bonds, highlighting sustained interest in government-backed securities despite fluctuating interest rates and market conditions.

The subscription window opened on February 2 and closed on February 6, 2026, with settlement completed on February 11. Investors seeking low-risk, fixed-income options responded strongly to the offering, reaffirming the appeal of sovereign-backed instruments for small and medium-scale investors.

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The two-year 14.356% FGN Savings Bond due February 2028 attracted N1.514 billion from 2,631 successful subscriptions, while the three-year 15.356% FGN Savings Bond due February 2029 recorded N4.398 billion from 2,195 subscriptions. Combined, the two instruments raised approximately N5.913 billion for the Federal Government. Coupon payments for both bonds are scheduled quarterly on May 11, August 11, November 11, and February 11 during the life of the bonds, offering investors a predictable income stream.

The Savings Bond programme was designed to expand domestic retail participation in government securities and reduce entry barriers for investors who may not typically participate in primary auctions of treasury instruments. By providing affordable minimum subscription amounts and ensuring full government backing, the initiative promotes financial inclusion and encourages a culture of savings among Nigerians.

Over the years, the programme has become a steady source of funding for the government, while also providing conservative investors with secure investment opportunities. The stronger value-based demand for the three-year bond indicates a preference among investors for longer tenors with higher yields, while the two-year instrument continues to appeal to those seeking shorter-term options with stable returns.

With double-digit yields and quarterly payouts, the February 2026 Savings Bond issuance demonstrates the continued attractiveness of government-backed instruments in Nigeria’s evolving financial landscape. The DMO continues to conduct monthly offerings to maintain consistent retail engagement, supporting both the government’s borrowing requirements and the broader goal of promoting a culture of prudent savings across the country.