FGN Savings Bond Yields Fall: Should Investors Choose Stocks Instead?
The September 2026 FGN Savings Bond offer was listed on September 7, with yields of 14.12% for two years and 15.12% for three years. This is lower than comparable offers in September 2024 and September 2025, when three-year rates were about 18.20% and 16.54% respectively. Lower government-bond yields may make equities more attractive over the long term. Investors taking on the greater volatility of stocks will usually expect returns well above the roughly 15% available from a risk-free government instrument. The market, however, remains volatile. The Banking Index reportedly fell 4.21% on Tuesday, while major bank stocks recorded losses. Some investors may therefore prefer the certainty of bond returns, while others may see opportunities in equities with stronger long-term growth potential. The proposed Dangote Refinery IPO is also expected to require significant investor liquidity. Before choosing between bonds and stocks, investors should consider their risk tolerance, investment horizon and the valuation of the companies involved.
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