Nigeria raises savings bond yields as deficit borrowing tightens local rates

• Two- and three-year savings bond yields jump sharply in January
• Heavy domestic borrowing adds pressure to Nigeria’s interest rates

ABUJA, NIGERIA – Nigeria opened its 2026 Federal Government Savings Bond programme with sharply higher yields, reflecting tighter domestic liquidity and mounting pressure from deficit financing.

The rate on the two-year savings bond rose to 14.396 percent for January, up from 12.838 percent offered in December, according to offer documents issued Tuesday by the Debt Management Office. Yields on the three-year paper also increased, climbing to 15.396 percent from 13.838 percent last month.