The Federal Government of Nigeria (FG) is set to raise N900 billion from the domestic market by offering high-yield bonds, the Debt Management Office (DMO) announced. Scheduled for auction on January 26, 2026, the bond offer comes as part of the government’s plan to fund budget needs while providing investors with long-term, government-backed returns. Settlement for the bonds is expected on January 28, 2026.
The bond package includes three instruments: N300 billion of 18.50% FGN February 2031 (7-year) bonds, N400 billion of 19.00% FGN February 2034 (10-year) bonds, and N200 billion of 22.60% FGN January 2035 (10-year) bonds. These are re-openings of previously issued bonds and are priced based on yield-to-maturity bids submitted by investors during the auction. Interest payments will be made semi-annually, with full repayment at maturity.
Each bond unit is priced at N1,000, with a minimum subscription of N50.001 million, targeting largely institutional investors. According to the DMO, the bonds qualify as approved securities under the Trustee Investment Act and are exempt from taxes under the Company Income Tax Act and Personal Income Tax Act. They are also listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, providing liquidity benefits for banks and other investors.
The DMO emphasized that FGN bonds are fully backed by the Federal Government’s assets, offering a secure investment option in the current market. Applications must be submitted through authorised Primary Dealer Market Makers, including major commercial and merchant banks across Nigeria. Analysts note that the high yields reflect tight liquidity conditions in the market, while providing a rare chance for investors to secure long-term returns.
This bond auction marks a significant step in deepening Nigeria’s domestic debt market. By offering high-yield government bonds, the FG aims to balance its budget financing needs with opportunities for investors to earn attractive returns, all while supporting a more robust, transparent, and liquid local financial market.
source: the sun