DMO reopens three FGN bonds, targets N1.2 trillion at July auction

The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has announced plans to raise up to N1.2 trillion through the reopening of three Federal Government of Nigeria (FGN) bonds.

The offer was disclosed in an Offer Circular issued by the DMO on Tuesday, July 14, 2026.

According to the circular, the bond auction is scheduled to take place on July 20, 2026, while settlement of successful bids will occur on July 22, 2026.

What they are saying

The DMO is offering N400 billion across each of the three bond instruments, bringing the total target amount to N1.2 trillion.

The instruments on offer are:

• N400 billion – 22.60% FGN JAN 2035 Bond (10-Year Re-opening)
• N400 billion – 15.45% FGN JUN 2038 Bond (15-Year Re-opening)
• N400 billion – 16.2499% FGN APR 2037 Bond (20-Year Re-opening)

The issuance is being conducted under the provisions of the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act.

More insights

The bonds will be issued at N1,000 per unit, with a minimum subscription requirement of N50.001 million and additional investments accepted in multiples of N1,000 thereafter.

• As with previous bond reopenings, successful investors will pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the instruments.
• Interest payments will be made semi-annually throughout the life of the bonds, while the principal will be repaid in full on the maturity date.
• The DMO stated that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and constitute a charge on the general assets of the federation.

The securities also enjoy several regulatory and tax advantages.

According to the circular, the bonds qualify as trustee investments under the Trustee Investment Act and are recognised as government securities for tax-exempt investment purposes under the Company Income Tax Act and Personal Income Tax Act.

The instruments are also eligible investments for pension funds and other institutional investors.

In addition, the bonds are listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, while qualifying as liquid assets for banks in the computation of liquidity ratios.

How investors can participate

The DMO advised interested investors to submit applications through any of the approved Primary Dealer Market Makers (PDMMs).

These include major financial institutions such as Access Bank, Citibank Nigeria, First Bank of Nigeria, Stanbic IBTC Bank, Zenith Bank, United Bank for Africa (UBA), and Guaranty Trust Bank, among others listed in the offer circular.

The debt office noted that it retains the discretion to determine final allotments following the auction.

What you should know

The planned issuance forms part of the Federal Government’s domestic borrowing strategy aimed at financing budgetary expenditures and managing public debt obligations.

• The July auction follows a similar exercise conducted in June 2026, when the DMO reopened two FGN bonds to raise a combined N1.2 trillion.
• Under that offer, the debt office made available N600 billion each in a 10-year and a 20-year bond reopening, with settlement completed on June 24, 2026.

The latest auction underscores the government’s continued reliance on the domestic debt market to fund fiscal operations while providing investors with access to long-term sovereign securities.