The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has announced a N1.2 trillion Federal Government of Nigeria (FGN) bond auction scheduled for July 20, 2026, as part of efforts to raise funds from the domestic debt market.
According to the offer circular released by the DMO, the offering comprises three re-opened bond issues valued at N400 billion each, covering 10-year, 15-year and 20-year tenors.
The first instrument is the 22.60 per cent FGN January 2035 bond (10-year re-opening) valued at N400 billion. The second is the 15.45 per cent FGN June 2038 bond (15-year re-opening), also worth N400 billion, while the third is the 16.2499 per cent FGN April 2037 bond (20-year re-opening), equally valued at N400 billion.
The auction is scheduled to hold on July 20, 2026, while successful bidders are expected to settle their subscriptions on July 22, 2026.
The DMO explained that the bonds are being offered pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act.
Under the terms of the offer, the bonds will be issued at N1,000 per unit, subject to a minimum subscription of N50,001,000, with additional investments accepted in multiples of N1,000 thereafter.
As the instruments are re-openings of previously issued bonds, the DMO stated that successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the securities.
Interest on the bonds will be paid semi-annually, while the principal will be repaid in full on the respective maturity dates through bullet repayment.
The DMO noted that the FGN bonds qualify as securities in which trustees can invest under the Trustee Investment Act. They also qualify as government securities under the Companies Income Tax Act and the Personal Income Tax Act, making them eligible for tax exemptions for pension funds and certain categories of investors.
The agency further stated that the bonds are listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, providing investors with liquidity through secondary market trading.
According to the circular, all FGN bonds qualify as liquid assets for banks in computing liquidity ratios, enhancing their attractiveness to financial institutions.
The DMO also reassured investors that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of the federation.
Interested investors were advised to submit applications through any of the authorised Primary Dealer Market Makers (PDMMs), including Access Bank Plc, Citibank Nigeria Limited, Coronation Merchant Bank Limited, Ecobank Nigeria Limited, FBNQuest Merchant Bank Limited, First Bank of Nigeria Limited, First City Monument Bank Plc, FSDH Merchant Bank Limited, Rand Merchant Bank Nigeria Limited, Guaranty Trust Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Nigeria Limited, United Bank for Africa Plc and Zenith Bank Plc.
The DMO added that it reserves the right to allot the FGN bonds at its discretion in line with prevailing market conditions and investor demand.
