FG Offers N1.1tn Bonds Across 10 to 20-Year Tenors

The Federal Government, through the Debt Management Office (DMO), has announced plans to raise N1.1 trillion through its August 2026 Federal Government of Nigeria (FGN) Bond auction, offering investors three re-opening instruments across 10, 15 and 20-year maturities.

The DMO disclosed the offer in a circular released today ahead of the auction scheduled for August 17, 2026, with settlement set for August 19, 2026.

The offer comprises N250 billion of the FGN January 2035 bond with a 22.60 per cent coupon, N100 billion of the FGN April 2037 bond with a 16.2499 per cent coupon, and N750 billion of the FGN June 2038 bond with a 15.45 per cent coupon.

The January 2035 bond is a 10-year re-opening, while the April 2037 and June 2038 instruments are 15-year and 20-year re-openings respectively. The June 2038 bond accounts for the largest portion of the offer at N750 billion, representing more than two-thirds of the total amount being offered.

The bonds will be sold through an auction, with successful bidders on the re-opened instruments paying prices corresponding to the yield-to-maturity bid that clears the amount being auctioned, alongside any accrued interest on the securities.

According to the DMO, interest on the bonds is payable semi-annually, while repayment of the principal will be made through a bullet repayment on the respective maturity dates.

The bonds have a minimum subscription requirement of N50.001 million, with subsequent subscriptions in multiples of N1,000. The units of sale are priced at N1,000 per unit.

The DMO said the FGN Bonds qualify as securities in which trustees can invest under the Trustee Investment Act and also qualify as government securities under the Companies Income Tax Act and Personal Income Tax Act for tax exemption purposes.

The securities are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. They also qualify as liquid assets for liquidity ratio calculations for banks.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of the country.

The DMO has invited interested investors to participate through Primary Dealer Market Makers, including Access Bank, Citibank Nigeria, Coronation Merchant Bank, Ecobank Nigeria, FirstBank, First City Monument Bank, FSDH Merchant Bank, Rand Merchant Bank Nigeria, Guaranty Trust Bank, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, United Bank for Africa and Zenith Bank.

The August bond auction comes as the Federal Government continues to use the domestic debt market to mobilise funds for its financing requirements while providing investors with government-backed fixed-income securities across different maturity profiles.

The DMO, however, reserved the right to allot the FGN Bonds at its discretion.