The Debt Management Office (DMO) raised N5.86 billion through the Federal Government of Nigeria Savings Bond (FGNSB) in August 2026, down 5.3% from the N6.19 billion raised in July, as lower coupon rates coincided with a moderation in retail investor demand.
The DMO’s August allotment results, released on Thursday, showed that it allotted N1.318 billion through the two-year savings bond and N4.545 billion through the three-year instrument, bringing total allotments to about N5.864 billion. The results covered subscriptions received between August 3 and 7, with settlement on August 12.
The August offer carried coupon rates of 13.963% for the two-year bond and 14.963% for the three-year bond. The securities mature on August 12, 2028 and August 12, 2029, respectively, with coupon payments scheduled quarterly.
The latest rates were lower than those offered in July, when the DMO paid 14.716% on the two-year instrument and 15.716% on the three-year bond. The July issue raised N6.193 billion, making August the second consecutive month in which proceeds fell from the previous month’s level.
Investor participation remained significant, however. The two-year bond attracted 1,295 subscriptions, while the three-year instrument received 2,882 subscriptions, meaning the longer-dated security accounted for roughly 69% of all subscriptions and most of the money allotted.
The preference for the three-year bond indicates that a substantial portion of retail investors remained willing to commit funds for longer in exchange for the additional one-percentage-point annual coupon.
The FGNSB is designed to give individual investors access to Federal Government securities. The programme allows subscriptions from as little as N5,000, making it accessible to smaller savers seeking government-backed fixed-income investments.
The August result also remained above the N4.678 billion raised in June and N4.074 billion in May, suggesting that the monthly decline does not yet represent a collapse in retail demand.
For the Federal Government, lower coupon rates could help reduce the cost of domestic borrowing if the trend persists. For investors, however, falling yields could intensify competition among savings bonds, Treasury bills, FGN bonds and other fixed-income products.
The August outcome therefore points to a market balancing act for the DMO: lower funding costs must be weighed against maintaining yields attractive enough to sustain retail participation. The next Savings Bond offer will provide a clearer indication of whether demand can remain near current levels as the domestic interest-rate environment evolves.
