The Debt Management Office (Nigeria) (DMO) is set to raise ₦700 billion in a new Federal Government of Nigeria (FGN) bond auction scheduled for Monday, April 27, 2026, as part of efforts to finance budgetary obligations and manage the country’s debt portfolio.
According to an official offer circular circulated to Primary Dealer Market Makers (PDMMs), the issuance forms part of the Federal Government’s domestic borrowing programme. The auction will be conducted through a competitive bidding process, with settlement fixed for April 29, 2026.
The planned offer comprises three re-opened bond instruments across different maturities. Specifically, the government will offer ₦300 billion in the 17.945% FGN AUG 2030 (5-year bond), ₦100 billion in the 17.95% FGN JUN 2032 (7-year bond), and ₦300 billion in the 22.60% FGN JAN 2035 (10-year bond). The longer-dated 2035 instrument carries the highest coupon rate, reflecting increased investor compensation for extended duration exposure.
The auction comes at a time when Nigeria’s fixed-income market continues to experience elevated yields, driven by tight liquidity conditions and sustained liquidity mop-up operations by the Central Bank of Nigeria (CBN). Market analysts say these conditions have influenced investor appetite for government securities, particularly longer-tenor bonds offering higher returns.
Under the auction framework, successful bids will be allocated based on the yield-to-maturity that clears each instrument, with investors also required to pay any accrued interest. The minimum subscription threshold is set at ₦50.001 million, with additional bids accepted in multiples of ₦1,000.
Interest on the bonds will be paid semi-annually, while the principal will be repaid in full at maturity. This structure continues to make FGN bonds one of the most attractive fixed-income instruments in the domestic market, particularly for institutional investors seeking relatively low-risk assets with stable returns.
FGN bonds have consistently recorded strong demand in recent auctions, supported by investors’ preference for sovereign-backed instruments amid broader macroeconomic uncertainty and attractive yield levels across maturities.
