The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, is set to raise N700 billion through a Federal Government Bond (FGN) auction scheduled for April 27, 2026.
Details contained in the official offer circular issued to Primary Dealer Market Makers (PDMMs) show that the issuance forms part of the government’s domestic borrowing plan to finance budgetary obligations and manage public debt.
The auction will feature three re-opened bond instruments across different maturities, using a competitive bidding process, with settlement slated for April 29, 2026.
Specifically, N300 billion will be raised through the 17.945% FGN AUG 2030 bond (5-year tenor), N100 billion through the 17.95% FGN JUN 2032 bond (7-year tenor), and another N300 billion via the 22.60% FGN JAN 2035 bond (10-year tenor).
Investors will pay a price that reflects the yield-to-maturity that clears the auction, along with any accrued interest. The bonds are priced at N1,000 per unit, with a minimum subscription of N50.001 million and additional investments in multiples of N1,000.
Interest payments will be made semi-annually, while the principal will be repaid in full at maturity.
The auction comes at a time of elevated yields in Nigeria’s fixed-income market, driven by tight monetary conditions and sustained liquidity mop-up by the Central Bank of Nigeria.
FGN bonds have continued to attract strong investor demand due to their relatively low risk and competitive returns. The 2035 bond, in particular, offers the highest coupon rate of 22.60 per cent, making it attractive to long-term investors.
These instruments are backed by the full faith and credit of the Federal Government, positioning them among the safest domestic investment options. They are also listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, ensuring liquidity in the secondary market.
In addition, FGN bonds qualify as liquid assets for banks’ liquidity ratio calculations and enjoy tax exemptions for pension funds and certain qualified investors.
Under the auction system, pricing is determined by investor demand rather than fixed rates, with allocations based on the yields investors are willing to accept.
Market participants are expected to closely monitor the outcome of the auction, particularly for signals on the direction of yields across medium- and long-term instruments in Nigeria’s debt market.
