Bringing Bonds to the People: Omobolaji Ode speaks on Nigeria’s New Savings Bond

In a bold move to deepen domestic participation in Nigeria’s capital markets, the Debt Management Office (DMO) recently announced the launch of the Federal Government Savings Bond (FGNSB). This new retail-focused security is designed to empower everyday Nigerians to invest safely while supporting national development.

This initiative marks a significant shift from a system where only high-net-worth individuals and institutions had access to risk-free government instruments, to one where ordinary citizens can invest with as little as ₦10,000.

We spoke with Omobolaji Ode, a rising leader in Nigeria’s financial markets and a Fixed Income Trader at one of Africa’s largest banks, to unpack what this reform means for both the government and the people. She also shares insights on market direction and the future of public finance in Nigeria.
Interview with Omobolaji Ode

Omobolaji, the launch of the Federal Government Savings Bond has generated quite a bit of buzz. Can you explain what makes this offering so important?
Absolutely. What makes this bond historic is that it democratizes access to one of the safest investment options in the country, which is government debt. Before now, you needed upwards of ₦100 million to participate in primary bond auctions. That excluded the vast majority of Nigerians.
With the FGNSB, you can now invest from as little as ₦10,000 up to ₦100 million. It is issued monthly, carries a fixed interest rate, and is backed by the full faith and credit of the federal government. This is a real opportunity for low and middle-income Nigerians to build wealth securely, earn predictable returns, and develop a culture of long-term saving.

What role did you and others in the private sector play in getting this to market?
As a fixed income trader at the foremost bank in the capital market, I have been very vocal about the need to broaden participation in the bond market. I participated in several working sessions with regulators, the DMO, and other market stakeholders where we emphasized that retail exclusion was weakening both market depth and public engagement.

We helped shape some key elements of the bond structure including the monthly calendar, simplified subscription process, and its listing on the Nigerian Stock Exchange. Our goal was to ensure accessibility for everyone from schoolteachers to market women.

Let’s talk about yield direction. What is your view on where rates are headed, and how does that affect the savings bond?
At present, yields are still relatively attractive, especially on the short and medium end of the curve. Inflation is stabilizing and we have started to see a more supportive stance from the Central Bank. If that trend continues, I expect yields to move gradually lower.
That means now is a good time to buy. By locking in today’s rates, FGNSB investors are likely to outperform many lower-yielding alternatives that may come in the near future. And most importantly, their capital is safe.

From the government’s perspective, what are the biggest benefits of this instrument?
The FGNSB provides the federal government with a more stable and diversified source of funding to support the budget. Instead of relying heavily on institutional investors or external loans, the government can now mobilize funds from its own citizens.

This has multiple benefits. It reduces dependence on foreign capital, builds trust, and promotes shared responsibility. When everyday Nigerians invest in public projects, they feel a stronger connection to national development. It also helps the government manage interest costs more effectively by having a wider investor base.

And for the average Nigerian investor, why should they consider buying this bond?
This bond is ideal for Nigerians looking for a secure way to grow their savings. It pays interest every quarter versus the benchmark bond that pays semi-annually, and guarantees your principal at maturity. It is perfect for parents planning ahead, for young people looking to build investment discipline, or retirees needing stable income.

More than that, it instills the right habits. It encourages long-term thinking, consistent saving, and ultimately financial independence. Knowing that your funds are going into roads, schools, and hospitals gives your investment both financial and social value.

There has been some debate around the role of foreign investors in our bond market. What is your stance on this?
Foreign investors are important. They bring scale and liquidity to the market. However, we cannot build a resilient market if we rely on them alone. As we saw in past cycles, capital can leave very quickly when global conditions change.

We need a strong domestic base to provide stability. The FGNSB is a powerful tool to help build that. By encouraging participation from local investors, we reduce vulnerability and give more Nigerians the opportunity to benefit from capital market growth.

What’s next for you and the broader capital market reform agenda?
The FGNSB is just the beginning. We are already working with regulators and policy makers on new instruments such as infrastructure bonds, sukuk, and green bonds. These will allow investors to fund specific development projects while earning returns.

For example, the sukuk we structured was used to fund critical road rehabilitation across multiple regions. The transparency and accountability built into that process made it very successful and well received by the public.

My focus remains on bridging the gap between finance and development. If we can build trust, improve access, and make investment tools understandable and impactful, we can transform the financial future of this country.

Closing Thoughts
The Federal Government Savings Bond is a landmark initiative that gives every Nigerian the chance to invest in the nation’s progress. With experienced professionals like Omobolaji Ode playing a central role in its design and advocacy, the future of inclusive and sustainable finance in Nigeria looks brighter than ever.

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