The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, plans to raise N1.2 trillion through the reopening of two Federal Government of Nigeria (FGN) bonds at an auction scheduled for June 22, 2026.
According to the DMO’s offer circular released on June 15, 2026, the government will offer N600 billion each in a 10-year and a 20-year bond, with settlement expected on June 24, 2026.
The bond issuance forms part of the Federal Government’s domestic borrowing programme and comes amid rising yields in the fixed-income market.
The DMO stated that the instruments on offer include the 22.60 per cent FGN January 2035 bond, a 10-year reopening valued at N600 billion, and the 16.2499 per cent FGN April 2037 bond, a 20-year reopening also worth N600 billion.
The agency explained that successful bidders will pay a price determined by the yield-to-maturity that clears the auction, in addition to any accrued interest on the bonds.
Subscriptions will be priced at N1,000 per unit, with a minimum investment threshold of N50.001 million. Additional purchases can be made in multiples of N1,000.
Coupon payments on the bonds will be made semi-annually, while the principal amount will be repaid in full upon maturity.
The planned N1.2 trillion issuance comes as the Central Bank of Nigeria continues efforts to tighten liquidity through its Open Market Operations (OMO) programme.
The liquidity tightening measures have contributed to higher yields across the fixed-income market, making government securities increasingly attractive to investors seeking stable returns.
Market analysts have described the offer as one of the largest single FGN bond auctions in recent months, highlighting both the government’s financing requirements and the prevailing monetary policy environment.
The 10-year FGN January 2035 bond carries a coupon rate of 22.60 per cent, significantly higher than the 16.2499 per cent coupon attached to the longer-dated FGN April 2037 bond.
Analysts noted that the difference reflects the interest rate conditions that existed when the bonds were originally issued.
Despite the lower coupon rate, demand for long-term FGN securities has remained robust, particularly among pension fund administrators and insurance companies.
These institutional investors are often attracted to federal government bonds because they provide tax-exempt returns and help match long-term financial obligations.
The continued appetite for government securities is expected to support investor participation at the auction, even as market participants closely monitor interest rate trends and liquidity conditions.
The bond auction is expected to provide the Federal Government with additional funding for budgetary and developmental obligations while offering investors an opportunity to secure returns through sovereign debt instruments.
