FG SECURITIES DELIVER POSITIVE REAL RETURNS TO INVESTORS

Federal Government securities have delivered positive real returns to investors in the first half of 2026, according to data from the Debt Management Office (DMO) and market analysts.

Despite the high inflation environment, several treasury bills and bonds offered yields that outpaced the inflation rate, providing investors with positive real returns after adjusting for inflation. This performance has boosted confidence in government debt instruments as a relatively safe investment option.

The DMO reported that average yields on short-term treasury bills ranged between 18% and 22%, while longer-dated bonds offered yields of up to 24%. With the inflation rate declining to 15.91% in June, many investors achieved positive real returns, particularly those who invested in inflation-indexed or high-yield instruments.

Financial experts have attributed the positive performance to the Central Bank of Nigeria’s tight monetary policy and increased demand for government securities as a safe haven amid economic uncertainties.

“FG securities have proven to be a reliable investment option even in a high inflation environment. Investors who stayed the course have been rewarded with positive real returns,” said Mr. Tunde Adebayo, a senior analyst at a leading brokerage firm.

The positive performance is expected to attract more domestic and foreign investors to the Nigerian debt market. The DMO has indicated that it will continue to issue a mix of short and long-term instruments to meet the government’s financing needs while providing attractive returns to investors.

Market participants have advised investors to diversify their portfolios and consider the duration and risk profile of different government securities. The DMO has also encouraged retail investors to participate through the retail bond window to benefit from the positive real returns.

As the economy continues to adjust to various reforms, the performance of FG securities is being closely watched as an indicator of investor confidence and the effectiveness of current economic policies.