The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, is expected to raise N700 billion through a Federal Government Bond (FGN) auction scheduled for Monday, April 27, 2026.
This is according to the official offer circular to Primary Dealer Market Makers (PDMMs), detailing the instruments to be offered and terms of the auction.
The planned issuance is part of the Federal Government’s domestic borrowing programme aimed at funding budgetary needs and managing public debt.
What the data is saying
The offer circular indicates that the Federal Government will raise the N700 billion through three bond re-openings across different maturities.
The auction will be conducted using a competitive bidding process, with settlement scheduled for April 29, 2026.
- N300 billion will be offered in the 17.945% FGN AUG 2030 (5-year re-opening)
- N100 billion will be offered in the 17.95% FGN JUN 2032 (7-year re-opening)
- N300 billion will be offered in the 22.60% FGN JAN 2035 (10-year re-opening)
Successful bidders will pay a price that reflects the yield-to-maturity that clears the auction, in addition to any accrued interest.
Subscriptions are priced at N1,000 per unit, with a minimum investment of N50.001 million and in multiples of N1,000 thereafter.
Interest payments on the bonds are made semi-annually, while the principal is repaid in full at maturity.
More insights
Monday’s auction comes amid elevated yields in fixed-income market and sustained liquidity mop-up by the Central Bank of Nigeria (CBN).
- FGN’s fixed income instruments have consistently recorded strong demand from investors seeking relatively risk-free instruments with attractive returns.
- The longer-tenor 2035 bond carries the highest coupon rate at 22.60%.
The auction is expected to attract significant interest, as investors continue to position for higher yields in the current rate environment.
What you should know
FGN bond is backed by the full faith and credit of the Federal Government of Nigeria, making it one of the safest domestic investment instruments.
- It is listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, providing liquidity in the secondary market.
- The bonds qualify as liquid assets for banks’ liquidity ratio calculations and are exempt from certain taxes for pension funds and other qualified investors.
- Under the auction system, pricing reflects investor demand rather than fixed rates, with allocations made based on the yields investors are willing to accept.
Market participants will closely monitor the April 27 auction to assess the direction of yields, particularly across medium- to long-term instruments in Nigeria’s debt market.
