FG Savings Bond allotment drops 8.5% to N6.12bn in October despite attractive yields

The Federal Government of Nigeria Savings Bond allotment fell by 8.5% to N6.12 billion in October 2026, down from N6.69 billion in September, according to Debt Management Office data. This marks the sharpest monthly decline since March, when allotments dropped 34.8% to N3.86 billion. Despite the drop, the three-year bond offered 14.071% annual interest and the two-year bond 13.071%, with the three-year instrument absorbing N5.11 billion (about 83% of the total) and the two-year N1.02 billion. Subscription counts were 2,678 for the three-year bond and 1,261 for the two-year, totalling 3,939 investors. The offer ran from October 5 to 9, with settlement scheduled for October 14; coupon payments are set for January 14, April 14, July 14 and October 14 each year, and the bonds mature on October 14, 2028 (two-year) and October 14, 2029 (three-year).

October’s result followed a strong September performance (up 14.1%) and kept cumulative January–October allotments at N47.37 billion, which is N11.02 billion higher than the same period in 2025. The allotment remained above the lows seen in March–June, indicating that investor interest persists despite monthly volatility. The dominance of the longer-dated bond suggests preference for locking in higher yields over a longer horizon, even as overall demand softened month-on-month.

Will you consider the FG Savings Bonds’ current yields of 14.07% (three-year) and 13.07% (two-year) attractive enough to invest despite the recent allotment decline, or would you prefer to wait for more stable subscription trends before committing funds?

SOURCE: https://nairametrics.com/2026/10/20/fg-savings-bond-allotment-drops-8-5-to-n6-12-billion-in-october/