The Debt Management Office (DMO) raised N5.86 billion through the Federal Government of Nigeria Savings Bond (FGNSB) in August 2026, representing a decline of N330 million from the N6.19 billion raised in July.

The DMO disclosed this in its August allotment result released on Thursday. The offer ran from August 3 to 7, with settlement completed on August 12.

The August issuance comprised two-year and three-year savings bonds with interest rates of 13.963 per cent and 14.963 per cent respectively.

The two-year bond, due on August 12, 2028, attracted 1,295 subscriptions and an allotment of N1.318 billion.

The three-year bond, due on August 12, 2029, recorded 2,882 subscriptions and an allotment of N4.545 billion.

Both instruments provide quarterly coupon payments on November 12, February 12, May 12 and August 12.

The July issuance attracted N6.193 billion from investors through two-year and three-year bonds with higher interest rates of 14.716 per cent and 15.716 per cent, respectively.

The August proceeds were also higher than the N4.678 billion raised in June and N4.074 billion recorded in May.

The FGNSB is part of the Federal Government’s domestic borrowing programme and is designed to provide retail investors with access to government securities. Unlike conventional fixed-income investments that may require larger amounts of capital or access to the primary market, the savings bond is targeted at individuals and small-scale investors.

The DMO issues the bonds on behalf of the Federal Government, with investors receiving predetermined coupon payments during the tenor and repayment of the principal at maturity. The programme also provides the government with an avenue to mobilise funds from domestic investors.

The savings bond, however, remains a relatively small component of the Federal Government’s domestic debt portfolio.

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 FGN 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.

The August FGNSB performance comes amid continued efforts by the Federal Government to deepen the domestic debt market and broaden participation in government securities beyond institutional investors.