Nigeria raises FGN Savings Bond rate to 15.7% as DMO expands Q3 funding

The highest coupon of the year signals persistent borrowing costs for Abuja, adding to a N4 trillion domestic issuance program.

By Handelsavisen Newsroom · Automated 2026-07-07 06:44 UTC · 1 min read

Nigeria’s Debt Management Office (DMO) has launched its July 2026 Federal Government of Nigeria (FGN) Savings Bond offer with an interest rate of 15.716%, marking the highest yield for the instrument this year.

The move underscores the elevated cost of borrowing for the Nigerian government as it seeks to replenish liquidity and fund fiscal obligations in a tight monetary environment.

716%, the DMO is signaling that funding conditions remain challenging, despite efforts to stabilize the domestic bond market.

The elevated coupon rate reflects the ongoing pressure on local debt markets, where investors demand higher returns to compensate for inflation risks and currency volatility.

By setting the rate at 15.716%, the DMO is signaling that funding conditions remain challenging, despite efforts to stabilize the domestic bond market.

This development is particularly notable given the broader context of Nigeria’s aggressive fundraising strategy.

According to Nairametrics, the Central Bank of Nigeria (CBN) has also triggered a significant increase in Treasury Bill issuance, with a N2 trillion plan for July alone.