DMO Offers N1.2tn FGN Bonds for Subscription
Nigeria’s DMO announces a N1.2 trillion FGN bond auction, offering investors government-backed securities across three maturity periods.
The Nigeria’s Debt Management Office (DMO) has offered N1.2 trillion worth of Federal Government of Nigeria (FGN) bonds for subscription through its July 2026 bond auction.
According to the offer circular released Tuesday by the DMO, the auction is scheduled for July 20, 2026, while settlement will take place on July 22, 2026.
The offer comprises three re-opening bond instruments valued at N400 billion each. They include the 22.60 per cent FGN January 2035 (10-year re-opening), the 15.45 per cent FGN June 2038 (15-year re-opening), and the 16.2499 per cent FGN April 2037 (20-year re-opening).
The DMO explained that the bonds will be sold through an auction process, with successful bidders paying a price that corresponds to the yield-to-maturity bid that clears the auction, in addition to any accrued interest on the instruments.
The bonds are offered at N1,000 per unit, subject to a minimum subscription of N50,001,000, and thereafter in multiples of N1,000.
Interest on the bonds will be paid semi-annually, while the principal will be repaid in full on the maturity date through a bullet repayment structure.
The Office noted that the securities qualify as trustee investment instruments under the Trustee Investment Act and also qualify as government securities under the Companies Income Tax Act and the Personal Income Tax Act, making them eligible for tax exemptions for pension funds and certain categories of investors.
The bonds are also listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, providing investors with opportunities to trade them in the secondary market.
In addition, the DMO stated that all FGN bonds qualify as liquid assets for banks’ liquidity ratio calculations, further enhancing their attractiveness to institutional investors.
The Office assured investors that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the federation.
Interested investors were advised to submit applications through any of the authorised Primary Dealer Market Makers (PDMMs), including Access Bank, First Bank, Guaranty Trust Bank, Zenith Bank, United Bank for Africa, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, Citibank Nigeria, Ecobank Nigeria, FCMB, Coronation Merchant Bank, FBNQuest Merchant Bank, FSDH Merchant Bank and Rand Merchant Bank Nigeria.
The DMO, however, noted that it reserves the right to allot the FGN bonds at its discretion.
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