FG CUTS SAVINGS BOND RATES IN OCTOBER OFFER

The Federal Government has reduced the interest rates on its October 2026 savings bond offer, with investors offered 13.071 per cent on the two-year instrument and 14.071 per cent on the three-year bond.

The Debt Management Office announced the rates in its October offer circular.

The three-year bond rate is lower than the 15.12 per cent offered for the same tenor in September.

The October offer opened on October 5 and will close on October 9, with settlement scheduled for October 14.

The two-year FGN savings bond will mature on October 14, 2028, while the three-year instrument will mature on October 14, 2029.

Interest payments on both bonds will be made quarterly on January 14, April 14, July 14 and October 14.

The securities are backed by the full faith and credit of the Federal Government and provide investors with fixed quarterly income until maturity.

The three-year instrument offers a one-percentage-point higher annual return than the two-year bond.

The FGN savings bond is targeted at retail investors seeking access to government securities, with a relatively low entry requirement.

The latest rate reduction comes amid changing conditions in Nigeria’s domestic fixed-income market.