Get Guardian on GoogleThe Debt Management Office (DMO) has raised N5.06 billion from its November 2026 Federal Government of Nigeria (FGN) Savings Bond offer, representing a 17.4 per cent decline from the N6.12 billion allotted to investors in October, amid a reduction in subscriptions.
The November allotment comprised N746.01 million from the two-year bond and N4.31 billion from the three-year instrument, according to the latest allotment results released by the DMO.
The offer, which opened from November 2 to 6, was settled on November 11, with the government offering yearly interest rates of 13.25 per cent and 14.25 per cent on the two-year and three-year bonds, respectively.
The lower allotment reflected reduced investor participation, as the two-year instrument attracted 968 subscriptions, compared with 1,261 recorded in October. The three-year bond also recorded 2,390 subscriptions, down from 2,678 in the preceding month.
In terms of value, investors received N746.01 million from the two-year November 2028 bond, against N1.02 billion allotted for the corresponding instrument in October. The three-year November 2029 bond attracted N4.31 billion, compared with N5.11 billion allotted in October.
The combined November allotment of N5.06 billion was about N1.06 billion lower than the October figure of N6.12 billion, indicating a moderation in demand for the government’s retail debt instrument.
However, the decline in subscriptions came despite an increase in the interest rates offered by the government, suggesting that the higher yields did not translate into stronger participation during the November offer.
The DMO raised the annual interest rate on the two-year bond to 13.25 per cent from 13.071 per cent in October, while the rate on the three-year instrument increased to 14.25 per cent from 14.071 per cent.
Both instruments will mature on November 11 of their respective maturity years, with the two-year bond due in 2028 and the three-year instrument in 2029.
Interest payments will be made quarterly on February 11, May 11, August 11 and November 11 throughout the tenor of the bonds.
Despite the decline in November, the FGN Savings Bond programme recorded stronger allotments in the first nine months of 2026 compared with the corresponding period of last year.
The DMO allotted N47.25 billion through the savings bond programme between January and September 2026, representing an increase of N11.02 billion or 30.4 per cent above the N36.23 billion recorded in the corresponding period of 2025.
The savings bond programme is designed to provide retail investors with access to government securities while offering the Federal Government an avenue to raise funds from the domestic market.
The DMO also manages the government’s larger domestic borrowing programme through FGN bond auctions, which target institutional and other investors.
The lower November allotment comes amid changing investor preferences in the fixed-income market, where competing government securities offer different yields and investment tenors.
Cowry Asset Management noted that increased government debt issuance could sustain pressure on borrowing costs, as investors reassess the returns required to absorb additional government securities.
The development also highlighted the sensitivity of retail investors to movements in interest rates and the availability of alternative investment opportunities, particularly as the government continues to rely on the domestic debt market to finance its borrowing requirements.
