…as DMO allots N3.64bn in April Savings Bond offer
By Charles Ebi
Nigeria’s foreign exchange reserves have declined to $48.6 billion as of April 16, 2026, marking a cumulative drop of about $1.38 billion over a five-week period.
This is according to data from the Central Bank of Nigeria ,CBN.
Data published on the apex bank’s website shows that reserves stood at $50.03 billion as of March 11, 2026, before declining to $48.65 billion by April 16.
While the CBN is yet to explain the reason for the drop, historical trends indicate a steady drawdown rather than a sharp drop.
The latest figures indicate a gradual but consistent decline in reserves over several weeks, pointing to persistent outflows or interventions in the FX market.
Daily data shows a steady reduction, with reserves dropping from $49.18 billion on April 1 to $48.72 billion by April 13, and further to $48.65 billion by April 16.
The pattern reflects a controlled drawdown rather than abrupt depletion, suggesting measured interventions or external obligations.
The data highlights ongoing pressures on Nigeria’s foreign exchange reserves despite earlier gains recorded at the start of the year.
Nigeria’s external reserves have historically exhibited volatility, largely influenced by global oil prices, capital flows, and domestic monetary policy actions.
In January 2026, reserves rose by about $509 million within the first 22 days, signalling improved inflows and stronger FX conditions at the time.
The current decline represents a reversal of that earlier upward trend, underscoring the cyclical nature of reserve movements.
A similar pattern was observed in October 2018, when reserves dropped by $1.1 billion within two weeks, highlighting how quickly external buffers can fluctuate.
Fitch Ratings recently projected that Nigeria’s foreign exchange reserves will decline to $47 billion by the end of 2026, despite ongoing reforms aimed at stabilising the economy.
Meanwhile, the Debt Management Office ,DMO, on behalf of the Federal Government, has allotted a total of N3.64 billion in its April 2026 Savings Bond offer, reflecting steady retail investor participation in government-backed securities.
This is according to the offer results published by the DMO following the close of the offer period held between April 7 and April 10, 2026.
The offer featured two instruments: a 2-year bond maturing in April 2028 and a 3-year bond maturing in April 2029, both attracting notable interest from individual investors.
Investor appetite was stronger for the longer-tenor instrument, as participants sought to lock in higher yields.
The results show a clear tilt toward the 3-year bond, which offered a higher return compared to the shorter-duration option.
The 13.082% FGN April 2028 Savings Bond recorded a total allotment of N864.961 million from 1,216 subscriptions, indicating moderate demand.
The 14.082% FGN April 2029 Savings Bond saw stronger participation, with N2.77 billion allotted across 1,953 subscriptions.
Combined, the two instruments attracted 3,169 subscriptions, with the 2029 bond accounting for about 62% of total subscriptions.
The longer-tenor bond also represented roughly 76% of total allotments, underscoring investor preference.
Overall, the data highlights a continued inclination among retail investors toward higher-yielding instruments, even when it involves longer holding periods.
The results highlight a clear investor preference for higher-yielding, longer-dated securities within the retail segment. This trend aligns with broader market behavior, where yield considerations often outweigh shorter-term liquidity preferences.
The 1.00 percentage point yield premium on the 3-year bond appears to have significantly driven demand.
Total allotment for the 2029 bond exceeded that of the 2028 bond by more than three times.
Coupon payments on both instruments will be made quarterly on July 15, October 15, January 15, and April 15.
These regular payments provide investors with a predictable and steady income stream.
This pattern suggests that even retail investors are increasingly adopting yield-optimization strategies similar to institutional participants.
The April Savings Bond result builds on a pattern of sustained investor interest in FGN securities across both retail and institutional segments. Recent issuances have consistently recorded strong participation, supported by relatively attractive yields.
In March 2026, the Federal Government offered savings bonds with yields of up to 13.9%.
In February 2026, rates climbed as high as 15.356%, reflecting an elevated interest rate environment.
On the institutional side, January 2026 saw N1.54 trillion allotted, surpassing the N900 billion initially offered.
December 2025 also recorded strong demand, with N596.47 billion raised above the offer size.
These developments indicate a broad-based and sustained appetite for government securities across different investor classes.
Savings Bonds are tailored to retail investors, offering secure and low-entry investment options backed by the Federal Government. They have remained attractive due to competitive yields and consistent issuance.
April 2026 rates ranged between 13.082% and 14.082%, slightly below February peaks but still competitive.
The bonds provide quarterly interest payments, enhancing their appeal for income-focused investors.
The programme continues to serve as a key avenue for retail participation in the domestic debt market.
Investors have consistently shown a preference for higher yields and longer tenors in recent offers.
Overall, the April 2026 allotment reinforces resilient confidence in FGN securities, driven by strong yields, regular issuance, and the government’s active domestic borrowing strategy.