The Federal Government is set to raise N1 trillion from the domestic debt market through its September 2026 bond auction, giving investors another opportunity to subscribe to Federal Government of Nigeria (FGN) securities. The Debt Management Office (DMO) said investors will require a minimum subscription of N50.001 million to participate in the auction scheduled for September 14, 2026.
According to the DMO’s latest auction circular, the N1 trillion offer comprises N400 billion of a new 10-year FGN bond maturing in September 2036 and N600 billion of the 15.45% FGN June 2038 bond, which is being reopened. The auction will take place on September 14, with settlement scheduled for September 16, 2026.
The bonds will be offered at N1,000 per unit, with the minimum subscription fixed at N50,001,000 and additional subscriptions accepted in multiples of N1,000. For the reopened June 2038 bond, the coupon remains at 15.45%, while successful bidders will pay a price based on the yield-to-maturity bid that clears the amount offered, alongside any applicable accrued interest.
Investors in the securities will receive interest twice a year, while the principal amount will be repaid at maturity. The bonds are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria. The September offer also comes after strong investor interest in the DMO’s August auction, where bids reached about N1.73 trillion against an initial offer of N1.1 trillion, with N1.56 trillion eventually allotted across three instruments.
The latest auction highlights the Federal Government’s continued reliance on domestic borrowing to support its fiscal obligations, while also reflecting the importance of government securities in Nigeria’s fixed-income market. The September exercise forms part of the DMO’s Q3 2026 bond programme, which includes the reopening of selected FGN bonds across July, August and September.
source: nairametrics
