The Debt Management Office (DMO) has announced plans to raise up to N1.2 trillion through the reopening of three Federal Government of Nigeria (FGN) bond instruments as part of its domestic borrowing programme.
Details of the offer were contained in an Offer Circular released on July 14, 2026, with the bond auction scheduled for July 20, 2026. Successful subscriptions are expected to be settled on July 22, 2026.
Three Bond Instruments on Offer
The DMO will reopen three existing FGN bonds, allocating N400 billion to each instrument, bringing the total offer size to N1.2 trillion.
The bonds available for subscription are:
- 22.60% FGN January 2035 Bond – 10-Year Reopening (N400 billion)
- 16.2499% FGN April 2037 Bond – 20-Year Reopening (N400 billion)
- 15.45% FGN June 2038 Bond – 15-Year Reopening (N400 billion)
The issuance is being conducted in accordance with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act.
Subscription Details
The bonds will be issued at a unit price of N1,000, with a minimum investment threshold of N50.001 million. Additional subscriptions may be made in multiples of N1,000 thereafter.
Successful bidders will purchase the securities at the yield determined during the auction, while also paying any accrued interest applicable to the reopened bonds.
Coupon payments will be made semi-annually throughout the tenor of each bond, with the principal redeemed in full upon maturity.
Regulatory and Investment Benefits
According to the DMO, the bonds are fully backed by the Federal Government of Nigeria, making them sovereign obligations supported by the government’s full faith and credit.
The securities also enjoy several regulatory and tax incentives. They qualify as trustee investments under the Trustee Investment Act and are recognised as tax-exempt government securities under both the Company Income Tax Act and the Personal Income Tax Act.
In addition, the bonds are eligible investments for pension funds and other institutional investors. They are listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, while also qualifying as liquid assets for banks when calculating regulatory liquidity ratios.
Participation Process
Interested investors are required to submit their applications through any of the approved Primary Dealer Market Makers (PDMMs), including leading commercial banks and licensed financial institutions participating in the Federal Government bond market.
The DMO noted that final allotments will be determined at its discretion following the completion of the auction process.
Investment Perspective
The July bond auction forms part of the Federal Government’s broader domestic financing strategy aimed at funding budget implementation while efficiently managing the country’s debt portfolio.
It follows the June 2026 bond auction, during which the DMO successfully reopened two FGN bond instruments with a combined offer size of N1.2 trillion.
The continued reopening of benchmark bonds reflects the government’s strategy of deepening liquidity in the domestic debt market, enhancing price discovery, and providing investors with access to long-term sovereign investment opportunities. As interest rates remain elevated, the auction is expected to attract strong demand from institutional investors seeking relatively stable, income-generating assets.
