By Seun Ibiyemi
The Debt Management Office (DMO) has offered a total of N1.1 trillion worth of Federal Government of Nigeria (FGN) bonds for subscription in its August 2026 auction as the government continues to raise funds through the domestic capital market.
The auction, scheduled for August 17, 2026, comprises three re-opened FGN bonds with different coupon rates and maturity periods.
The offer includes N250 billion of the 22.60 per cent FGN January 2035 bond, N100 billion of the 16.2499 per cent FGN April 2037 bond and N750 billion of the 15.45 per cent FGN June 2038 bond.
Settlement for successful bids is scheduled for August 19, 2026, according to the DMO’s offer circular.
The latest auction forms part of the Federal Government’s regular domestic borrowing programme aimed at raising funds to meet its financing requirements while providing investment opportunities for participants in the Nigerian fixed-income market.
Unlike new bond issuances, the three securities being offered are re-openings of previously issued instruments already trading in the market.
The January 2035 bond has a remaining maturity of about nine years, while the April 2037 and June 2038 bonds have remaining maturities of approximately 11 and 12 years respectively.
Although the coupon rates on the bonds are already fixed, investors will bid based on their desired yield-to-maturity.
The final price paid by successful bidders will therefore reflect the yield at which their bids are allotted, alongside applicable accrued interest.
The DMO said the bonds will continue to pay interest twice annually, with the principal repayable in full at maturity.
Investors can subscribe at N1,000 per unit, with a minimum subscription of N50,000 and additional subscriptions in multiples of N1,000.
The bonds are backed by the full faith and credit of the Federal Government and are listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, allowing investors to trade them in the secondary market.
The securities also qualify as liquid assets for calculating banks’ liquidity ratios and can be held by trustees under applicable investment regulations, making them particularly relevant to banks, pension fund managers, insurance companies and other institutional investors.
However, the DMO cautioned that investors who sell the bonds before maturity could receive more or less than their original investment, depending on prevailing market conditions.
Investors seeking to participate in the auction are required to approach any of the DMO’s appointed Primary Dealer Market Makers (PDMMs), including Access Bank, Citibank Nigeria, Coronation Merchant Bank, Ecobank Nigeria, FBNQuest Merchant Bank, First Bank of Nigeria, FCMB, FSDH Merchant Bank, Rand Merchant Bank Nigeria, Guaranty Trust Bank, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, United Bank for Africa and Zenith Bank.
The DMO said it reserves the right to allot the bonds at its discretion.
The August offer comes amid continued activity in Nigeria’s fixed-income market, with government securities remaining a major source of domestic financing for the Federal Government and an important investment avenue for individuals and institutional investors.
