The Debt Management Office (DMO) is set to offer N425 billion worth of Federal Government of Nigeria (FGN) bonds to investors through an auction scheduled for August 17, 2026. The latest offer comes as the government continues to use the domestic debt market to raise funds while providing investors with opportunities to hold government-backed securities.
According to a circular issued by the DMO on Thursday, the auction will feature three previously issued FGN bonds, known as re-openings. The largest portion, N250 billion, is the 22.60 percent FGN January 2035 bond, while N100 billion will come from the 16.2499 percent FGN April 2037 bond. The remaining N75 billion is the 15.45 percent FGN June 2038 bond.
The auction is scheduled for August 17, with settlement expected on August 19. Investors who successfully bid will pay the price at which their bids clear the volume offered, alongside any accrued interest on the bonds. The DMO also noted that it retains the discretion to determine the final allotment. Subscriptions will start from as little as N5,000, with additional investments available in multiples of N1,000.
For investors looking for relatively predictable returns, the bonds offer semi-annual interest payments, while the principal will be repaid through a bullet repayment at maturity. The securities are also listed on the Nigerian Exchange (NGX) and FMDQ OTC Securities Exchange. The DMO said the bonds qualify as liquid assets for calculating financial institutions’ liquidity ratios and are backed by the full faith and credit of the Federal Government of Nigeria.
Investors interested in participating in the DMO N425bn FGN bonds auction are expected to approach any of the designated primary dealer market makers. These include Access Bank, Citibank Nigeria, Coronation Merchant Bank, Ecobank Nigeria, FBNQuest Merchant Bank, First Bank, FCMB, FSDH Merchant Bank, Rand Merchant Bank, Guaranty Trust Bank, Stanbic IBTC Bank, Standard Chartered Bank, UBA and Zenith Bank. With the auction bringing N425 billion of government securities to the market, investors will be watching closely to see how demand develops ahead of the August 17 offering.
source: The cable
