DMO’s November savings bond sales fall 17.4%

The Debt Management Office allotted N5.06 billion to investors in its November Federal Government of Nigeria Savings Bond offer, down 17.4 per cent from N6.12 billion in October, as subscriptions declined across both investment tenors.

The November allotment comprised N746.01m for the two-year bond and N4.31bn for the three-year instrument, according to the DMO’s latest allotment results published on Thursday.

The offer opened between 2 and 6 November and was settled on 11 November, with annual interest rates of 13.25 per cent and 14.25 per cent for the two-year and three-year bonds, respectively.

The lower November proceeds came despite an increase in the interest rates offered on both instruments, suggesting that the higher returns did not translate into stronger investor participation during the offer period.

The two-year November 2028 bond attracted 968 subscriptions, compared with 1,261 recorded for the October offer. Its allotment also fell to N746.01m from N1.02bn.

The three-year November 2029 instrument received 2,390 subscriptions, down from 2,678 in October, while the amount allotted declined to N4.31bn from N5.11bn.

The November offer therefore recorded lower participation and allocations across both tenors, although the three-year instrument continued to account for the bulk of the funds raised.

The decline in subscriptions occurred even as the DMO raised the rates offered to retail investors.

• Tinubu seeks Reps’ nod to access N10.79tn external loans
• Floods: World Bank approves $500m Nigeria loan
• FG targets N2tn from investors in November bond auction

The two-year bond rate increased to 13.25 per cent in November from 13.071 per cent in October, while the three-year rate rose to 14.25 per cent from 14.071 per cent.

Interest on the bonds is paid quarterly on 11 February, 11 May, 11 August and 11 November. The two-year instrument will mature on 11 November, 2028, while the three-year bond is due on 11 November, 2029.

Despite November’s decline, the DMO’s savings bond allotments remained higher over the first nine months of 2026.

The agency allotted N47.25bn through the programme between January and September, representing an increase of 30.4 per cent from the N36.23bn recorded in the corresponding period of 2025.

The savings bond programme provides retail investors with access to government debt, alongside the DMO’s larger Federal Government bond issuances.