FG Re-Opens Three Bonds Valued at N1.1tn for August Subscription

The Federal Government has reopened three Federal Government of Nigeria bonds worth a combined N1.1tn for subscription, with the Debt Management Office (DMO) setting the auction for August 17, 2026.

The bonds are being offered at N1,000 per unit, with a minimum subscription of N50m and additional subscriptions in multiples of N1,000.

According to a statement issued by the DMO in Abuja on Thursday, the first offer is a January 2035 FGN Bond valued at N250bn, representing a 10-year re-opening, with an interest rate of 22.60 per cent per annum.

The second offer is an April 2037 FGN Bond worth N100bn, representing a 20-year re-opening, with an interest rate of 16.2499 per cent per annum.

The third and largest offer is a June 2038 FGN Bond valued at N750bn, representing a 15-year re-opening, with an interest rate of 15.45 per cent per annum.

The auction is scheduled for August 17, while settlement will take place on August 19.

The DMO explained that because the bonds are re-openings of previously issued securities with existing coupons, successful bidders would pay prices corresponding to the yield-to-maturity bids that clear the volume being auctioned, alongside accrued interest.

Interest on the bonds will be paid semi-annually, while the principal will be repaid through bullet repayment at maturity.

The DMO said the securities are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

The bonds also qualify as securities in which trustees can invest under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act.

According to the DMO, the securities are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.

The bonds also qualify as liquid assets for calculating banks’ liquidity ratios.

FGN bonds are debt instruments issued by the DMO on behalf of the Federal Government to raise funds for government financing needs.

Investors who subscribe to the bonds effectively lend money to the Federal Government in exchange for periodic interest payments and repayment of the principal when the securities mature.

The primary market offering is generally targeted at institutional investors and high-net-worth individuals, including pension fund administrators, banks, insurance companies, asset managers and corporate treasury desks.

The N50m minimum subscription at primary auctions makes the securities particularly suited to investors seeking large-scale exposure to Federal Government debt instruments.