The Debt Management Office (DMO), on behalf of the Federal Government, has announced the offer of three Federal Government of Nigeria (FGN) bonds valued at a combined N1.1 trillion as part of efforts to raise funds from investors.
The bonds, offered at N1,000 per unit, comprise three re-openings of previously issued securities with different maturity periods and interest rates.
The first is the January 2035 FGN Bond, valued at N250 billion, with a coupon rate of 22.60 percent per annum. The second is the April 2037 FGN Bond, valued at N100 billion, with an interest rate of 16.2499 percent per annum.
The largest offer is the June 2038 FGN Bond, valued at N750 billion, with a coupon rate of 15.45 percent per annum.
According to the DMO, the auction is scheduled for August 17, 2026, while settlement is expected on August 19.
The bonds come with a minimum subscription of N50 million, with additional subscriptions required to be in multiples of N1,000, placing the offer largely within the reach of institutional investors and high-net-worth individuals.
Interest on the securities will be paid twice a year, while investors will receive their principal through bullet repayment when the respective bonds mature.
The latest offer provides investors with an opportunity to earn fixed returns by lending funds to the Federal Government, while the government gains access to additional domestic financing.
FGN bonds are backed by the full faith and credit of the Federal Government and are listed on the Nigerian Exchange and FMDQ OTC Securities Exchange.
The securities also qualify as liquid assets for banks and can be used by eligible investors for various statutory and investment purposes.
The DMO explained that because the securities are re-openings, successful bidders will pay prices determined by the yield-to-maturity bid that clears the auction, alongside any applicable accrued interest.
The N1.1 trillion offer therefore represents another major move by the Federal Government to tap Nigeria’s domestic capital market while providing investors with long-term government-backed investment instruments.
