The FGN Savings Bond is the Federal Government of Nigeria's solution to a real problem: making safe government investment accessible to ordinary Nigerians, not just banks and institutions. With a minimum of ₦5,000, a quarterly coupon payment directly to your bank account, and full government backing, it is one of the most attractive investment products for conservative Nigerian retail investors in 2026.
- Issuer: Debt Management Office (DMO) — Federal Government of Nigeria
- Minimum investment: ₦5,000 (multiples of ₦1,000 thereafter)
- Maximum per individual: ₦50,000,000 per series
- Tenors: 2-year and 3-year
- Interest payment: quarterly, directly to your bank account
- Coupon rate: 16–19% p.a. (May 2026) — and coupon income is TAX-FREE
- Settlement: T+2 (within 2 business days of offer close)
FGN Savings Bond vs Other Safe Investments — Comparison
| Feature | FGN Savings Bond | Treasury Bills (364-day) | Fixed Deposit (1-year) | Money Market Fund |
|---|---|---|---|---|
| Backed by | Federal Government | Federal Government | Commercial bank (NDIC ₦500K) | SEC-regulated fund |
| Rate (May 2026) | 16–19% p.a. | 24–26% p.a. | 17–24% p.a. | 18–22% p.a. |
| Tax on interest | EXEMPT ✓ | 10% WHT | 10% WHT | 10% WHT |
| Net effective yield | 16–19% (tax-free) | 21.6–23.4% | 15.3–21.6% | 16.2–19.8% |
| Minimum investment | ₦5,000 | ₦50,000 (broker) | ₦50,000+ | ₦100 |
| Interest payment | Quarterly to bank | Paid at maturity (discount) | At maturity | Daily accrual |
| Liquidity | Low (secondary market) | Medium (T+2) | Locked | High (T+1 to T+3) |
Who Should Buy FGN Savings Bonds?
The FGN Savings Bond's combination of government guarantee, tax-free coupon, quarterly income, and low minimum investment makes it particularly suitable for: retirees and pensioners who need regular income, salary earners saving for a medium-term goal (3 years), and investors who want government-level safety without the ₦50M minimum of direct T-bill auctions. The quarterly coupon payment structure is a significant advantage over treasury bills, which only pay at maturity.
How to Subscribe Monthly — Step by Step
- Watch for the DMO monthly offer notice — published at dmo.gov.ng and via authorised bank notifications
- Visit any authorised bank (GTBank, Access, Zenith, First Bank, UBA, Stanbic IBTC) online or in-branch
- Complete a subscription form (some banks now allow in-app subscription)
- Fund the subscription from your bank account during the offer period
- Receive bond certificate (electronic) by month-end
- Quarterly coupons are paid directly to your nominated bank account
- At maturity, face value is returned to your bank account automatically
- FGN Savings Bonds are offered once a month — typically in the first week
- Once the offer window closes, you must wait for next month's issuance
- Rates may change each month — lock in when rates are high
- Over-subscribed series are allocated on a first-come, first-served or pro-rata basis
- Set a reminder for the first Monday of each month to check the DMO offer notice
Compare all government and fixed-income investment options available to Nigerians.
Compare Safe Investments →Frequently Asked Questions
Disclaimer: CompareMarket NG is an independent comparison service. Information is verified against regulatory databases (NAICOM, CBN, FCCPC, NDIC, NERC, NCC) and updated regularly, but rates and products change frequently. Always verify current terms directly with the provider before making a financial decision. This is not financial advice.
