The Debt Management Office (DMO) has announced plans to raise up to N1.2 trillion from the local debt market by reopening three Federal Government of Nigeria (FGN) bonds this July.
According to an official offer circular released on Tuesday, the DMO will offer N400 billion through each of the three bond instruments, making the total amount available N1.2 trillion.
The bond auction is scheduled to take place on July 20, 2026, while successful investors are expected to complete settlement on July 22, 2026.
The first bond on offer is the 22.60 percent FGN January 2035 Bond, which has a 10-year maturity. The DMO plans to raise N400 billion from this reopening.
Another N400 billion will come from the 15.45 percent FGN June 2038 Bond, a 15-year investment option. The third instrument is the 16.2499 percent FGN April 2037 Bond, which is also being reopened with a target of N400 billion.
This latest fundraising exercise comes only a month after the DMO successfully raised more than N1.2 trillion through a similar bond auction held in June 2026.
During the June auction, the DMO reopened two government bonds and initially offered N600 billionfor each, giving a total offer of N1.2 trillion. However, strong demand from investors pushed total subscriptions to about N1.41 trillion, showing continued confidence in Federal Government securities.
At the end of the June exercise, the DMO successfully raised around N1.22 trillion.
The 22.60 percent FGN January 2035 Bond attracted the highest level of interest. It received subscription requests worth over N705 billion from 179 investors. Out of these bids, 135 were successful, while approximately N600.9 billion worth of the bond was allocated.
Investors submitted bids with interest rates ranging between 16 percent and 22.60 percent, while the final accepted rate settled at 18.34 percent.
The July bond offer forms part of the Federal Government’s domestic borrowing strategy to finance the implementation of the national budget and meet other financial obligations. Instead of relying mainly on foreign loans, the government continues to source funds from the local bond market.
Government bonds remain one of the preferred investment options for many institutional and individual investors because they are considered relatively secure and provide stable long-term returns.
The planned July auction is expected to attract another strong response, following the success of the previous exercise. The continued demand for FGN bonds reflects investors’ confidence in government-backed securities despite current economic challenges.
With this new offer, the Federal Government hopes to secure additional funding for public projects while giving investors another opportunity to invest in long-term financial instruments backed by the Nigerian government.
