Nigeria’s Debt Management Office (DMO) has announced plans to raise ₦600 billion through a fresh Federal Government of Nigeria (FGN) bond auction scheduled for May 18, 2026, as the government intensifies efforts to fund budgetary obligations and sustain activity in the domestic debt market.
According to details contained in the official offer circular released on Tuesday, settlement for successful investors will take place on May 20, 2026.
The new issuance is part of the Federal Government’s ongoing borrowing strategy aimed at supporting fiscal spending, broadening the local capital market, and attracting long-term institutional investments amid continued appetite for fixed-income assets.
Under the offer, the DMO is reopening two existing sovereign bond instruments valued at ₦300 billion each. The first is the 22.60 per cent FGN January 2035 bond, a 10-year instrument, while the second is the 16.2499 per cent FGN April 2037 bond with a 20-year tenor.
Each bond unit is priced at ₦1,000, with a minimum subscription threshold of ₦50.001 million. Additional subscriptions can be made in multiples of ₦1,000.
The agency clarified that both instruments are re-openings of previously issued bonds, meaning their coupon rates remain unchanged. Investors whose bids are successful will, however, pay according to the yield-to-maturity rate that clears the auction, in addition to accrued interest.
Interest payments on the bonds will be made every six months, while the principal repayment will be settled in full at maturity under a bullet repayment arrangement.
The DMO further assured investors that the instruments are fully backed by the faith and credit of the Federal Government of Nigeria, reinforcing their status as sovereign securities.
The May auction represents a reduction of ₦100 billion compared to the government’s April 2026 bond offer. In April, the DMO offered a total of ₦700 billion across three instruments, including a ₦300 billion 2035 bond, a ₦100 billion 2032 seven-year bond, and a ₦300 billion 2030 five-year bond.
Market analysts say the continued reliance on bond issuances highlights the government’s strategy of leveraging the domestic debt market to finance budget deficits while maintaining investor confidence in Nigeria’s sovereign debt instruments.
