The Debt Management Office (DMO) has announced plans to auction N700 billion worth of Federal Government of Nigeria (FGN) bonds, offering investors an opportunity to subscribe at N1,000 per unit. The move is part of the government’s ongoing efforts to raise funds for public spending and meet budgetary obligations, while also deepening participation in Nigeria’s debt market.
In a circular released on Wednesday, the agency disclosed that the bond auction will open on April 27, 2026, with a settlement date set for April 29. The offering includes three instruments: a N300 billion five-year bond maturing in August 2030 at 17.98 percent, a N100 billion seven-year bond maturing in June 2032 at 17.95 percent, and a N300 billion 10-year bond maturing in January 2035 with a yield of 22.60 percent.
A bond is essentially a loan from investors to a borrower, in this case the government, with the promise of regular interest payments and repayment of the principal at maturity. According to the DMO, the bonds will be sold via auction, with successful bidders paying prices based on the yield-to-maturity that clears the offered volume, in addition to any accrued interest.
The agency explained that the bonds come with a minimum subscription of N50,001,000 and are issued in multiples of N1,000 thereafter. Interest payments will be made semi-annually, while the principal will be repaid in full upon maturity. Importantly, the DMO emphasized that FGN bonds are backed by the full faith and credit of the Federal Government, making them a relatively secure investment option.
Further boosting their appeal, the bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and qualify as liquid assets for banks’ liquidity ratio calculations. The DMO also noted that the instruments are eligible for investment by pension funds, trustees, and other institutional investors, urging interested parties to submit applications through authorised primary dealer market makers ahead of the auction date.
source: The cable