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The Federal Government of Nigeria is seeking to raise N1 trillion in its September 2026 bond auction, with the Debt Management Office (DMO) setting a minimum entry threshold of N50.001 million for participating investors.
This is contained in the latest DMO’s circular.
The offer comprises N400 billion of a new 10-year FGN bond due September 2036 and N600 billion of the 15.45% FGN June 2038 bond, which is being re-opened.
The auction is scheduled for September 14, 2026, while settlement will take place on September 16.
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What the DMO circular shows
The bonds are sold at N1,000 per unit, subject to a minimum subscription of N50,001,000 and additional subscriptions in multiples of N1,000.
For the re-opened June 2038 bond, the coupon remains fixed at 15.45%. Successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume offered, plus any accrued interest.
Interest on the bonds is payable semi-annually, while the principal will be repaid in full at maturity.
The securities are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.
Get up to speed
The September auction follows strong demand at the DMO’s August bond auction, where investors submitted bids worth N1.73 trillion against an offer of N1.1 trillion.
- The DMO subsequently allotted N1.56 trillion across the three instruments offered at the August 17 auction.
- The August offer comprised N250 billion of the 22.60% FGN January 2035 bond, N100 billion of the 16.2499% FGN April 2037 bond and N750 billion of the 15.45% FGN June 2038 bond.
Also, Nairametrics reported that DMO raised N5.86 billion through the FGNSB in August 2026, down from the N6.19 billion raised in July, indicating softer investor demand during the month.
- Nairametrics had earlier reported that the DMO’s August FGNSB offer carried an annual interest rate of up to 14.963%, lower than the rates offered under the latest September issuance.
The strong subscription resulted in allocations above the amount initially offered, reflecting continued investor appetite for government securities despite prevailing yield and liquidity conditions.
What you should know
Earlier, Nairametrics reported that DMO opened its September 2026 Savings Bond offer, offering investors annual interest rates of up to 15.12%.
The instruments remain a benchmark for Nigeria’s fixed income market, backed by the full faith and credit of the Federal Government, and qualify as trustee investments under the Trustee Investment Act.
They are also recognised as government securities for tax-exemption purposes under the Companies Income Tax Act and the Personal Income Tax Act.
The outcome underscores the Federal Government’s continued reliance on domestic borrowing to finance fiscal obligations. The September auction forms part of the DMO’s Q3 2026 bond programme, which features reopenings of the same three instruments in July, August and September.
