The Federal Government raised N5.86 billion through its August 2026 Savings Bond offer, marking a decline in retail investor participation compared with the N6.19 billion raised in July.
The Debt Management Office (DMO), in its latest allotment circular released on Thursday, said the August offer comprised two-year and three-year Federal Government of Nigeria Savings Bonds (FGNSB), with interest rates of 13.963 per cent and 14.963 per cent respectively.
The August result represents a decline of about N330 million, or 5.3 per cent, from the amount raised in July, despite the continued appeal of the government-backed investment instrument.
The latest offer was conducted from August 3 to 7, with settlement taking place on August 12.
The DMO said the two-year FGNSB, which carries a 13.963 per cent interest rate and matures on August 12, 2028, attracted 1,295 subscriptions and received an allotment of N1.318 billion.
The three-year bond, offering a higher interest rate of 14.963 per cent and maturing on August 12, 2029, proved more popular among investors. It recorded 2,882 subscriptions and an allotment of N4.545 billion.
Combined, the two instruments generated N5.863 billion for the Federal Government.
Coupon payments on both bonds are scheduled quarterly on November 12, February 12, May 12 and August 12.
The August decline follows stronger participation in July, when the DMO raised N6.193 billion through two FGNSB instruments.
Also, the July bonds carried higher interest rates of 14.716 per cent for the two-year instrument and 15.716 per cent for the three-year bond.
The government raised N4.678 billion through its June 2026 Savings Bond programme, compared with N4.074 billion in May, indicating that investor participation has fluctuated throughout the year.
Economic Confidential reports that the FGNSB remains one of several instruments through which the Federal Government finances its domestic borrowing requirements.
Government bonds remain the dominant component of Nigeria’s domestic debt stock. FGN bonds accounted for N63.45 trillion, representing 76.56 per cent of total domestic debt, while Nigerian Treasury Bills stood at N16.57 trillion, or 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.
