DMO to Raise N900 Billion in January 2026 Bond Auction: Investment Opportunity for FGN Bonds

The Debt Management Office (DMO) has revealed plans for the Federal Government to raise N900 billion through the reopening of three federal government bonds in its January 2026 bond auction. The auction is scheduled for January 26, 2026, with settlement expected on January 28, 2026, providing investors with a key opportunity to participate in medium- and long-term government securities.

The January offering includes three reopened bonds: N300 billion from the 18.50% FGN February 2031 bond, N400 billion from the 19.00% FGN February 2034 bond, and N200 billion from the 22.60% FGN January 2035 bond. Each unit is priced at N1,000, with a minimum subscription of N50,001,000. Successful bidders will receive semi-annual interest payments, while the principal is repaid in full at maturity under a bullet repayment structure.

Historically, FGN bonds have attracted strong investor interest. DMO records show that total bond allotments in 2025 reached approximately N5.12 trillion, reflecting robust market demand. Bond reopenings remain a strategic tool for the government to finance budget deficits while offering predictable yields for pension funds, insurance companies, banks, and individual investors.

Investors in the January auction also benefit from a range of regulatory and tax incentives. The bonds are recognized under the Trustee Investment Act, the Company Income Tax Act (CITA), and the Personal Income Tax Act (PITA), offering potential tax exemptions. Furthermore, the bonds will be listed on the Nigerian Exchange (NGX) and FMDQ OTC Securities Exchange, ensuring transparency and tradability. For banks, these instruments count as liquid assets for liquidity ratio calculations, providing an additional layer of security.

The January 2026 DMO bond auction is part of the Federal Government’s broader domestic borrowing strategy, which aims to fund budgetary needs, deepen the domestic debt market, and provide long-term investment opportunities. Analysts say that such offerings strengthen market liquidity, create benchmark yield curves, and continue to make government securities an attractive option for both institutional and retail investors.

source: nairametrics