The Debt Management Office (DMO), on behalf of the Federal Government, has opened four government bonds worth N2 trillion for subscription as it seeks to raise funds from investors through the domestic debt market.
The bond auction is scheduled for November 16, 2026, while settlement will take place on November 18, according to an offer circular released by the debt office on Wednesday. The offer comprises four previously issued Federal Government of Nigeria (FGN) bonds with maturity dates ranging from March 2028 to May 2033.
The largest portion of the offer is a N750 billion bond maturing in August 2030, with an interest rate of 17.945 per cent. Another N700 billion is allocated to a bond due in March 2028, carrying an interest rate of 21 per cent. The remaining offers include N250 billion for the April 2029 bond at 19.39 per cent interest and N300 billion for the May 2033 bond at 19.89 per cent. The securities are being reissued to investors, meaning their original interest rates will remain unchanged. However, the prices successful bidders pay will depend on the yields accepted during the auction, alongside any interest that has accumulated on the bonds.
Each bond unit is priced at N1,000, with a minimum subscription of N50.001 million. Additional investments must be made in multiples of N1,000.
According to the DMO, interest payments will be made every six months, while investors will receive their principal investment in full when the respective bonds mature. The debt office explained that successful bidders would pay prices based on the yield to maturity that clears the volume offered at the auction.
“For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument,” the agency said.
The bonds will also enjoy several regulatory and investment benefits. They qualify as investments for trustees under the Trustee Investment Act and as government securities under relevant provisions of the Companies Income Tax Act and Personal Income Tax Act. The securities will be listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, allowing investors to trade them in the secondary market. They will also qualify as liquid assets for banks when calculating their liquidity ratios.
The DMO further stated that the bonds are backed by the full faith and credit of the Federal Government and charged upon Nigeria’s general assets.
