The Debt Management Office raised N5.86 billion through the August 2026 FGN Savings Bond, down from N6.19 billion in July, as retail investor demand softened alongside declining coupon rates. The subscription window ran August 3–7, with settlement completed August 12, per the DMO's official allotment circular.
The August offer split into a two-year bond at 13.963% (maturing August 12, 2028) and a three-year bond at 14.963% (maturing August 12, 2029) both down roughly 75 basis points from July's 14.716% and 15.716% respectively. The three-year tenor pulled the bulk of demand: N4.545 billion across 2,882 subscriptions, versus N1.318 billion across 1,295 subscriptions for the two-year note, indicating investors still favor locking in the higher long-tenor rate even as absolute yields decline.
This marks three consecutive months of falling FGNSB rates (May: N4.07bn raised: June: N4.68bn; July: N6.19bn; August: N5.86bn), tracking a broader softening in Nigeria's fixed-income yield environment. For income-focused investors, the trend is the signal: if the DMO continues cutting coupon rates month-over-month, the relative appeal of savings bonds versus alternatives (money market funds, NGX-listed dividend stocks, or the Coronation Infrastructure Fund's recent N20bn debt offer) shifts further. The instrument remains SEC-registered, NGX-listed, and accessible from N5,000, with quarterly coupons paid every February, May, August and November 12.
Watch the September 2026 FGNSB offer expected to open in the first week of the month for confirmation of whether the rate-decline trend continues, which would signal further monetary easing expectations baked into government paper pricing.
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