DMO offers N1.75trn FGN bonds for subscription, sets October 19 auction date

The Debt Management Office, DMO has announced plans to offer Federal Government of Nigeria, FGN bonds worth N1.75 trillion for subscription through an auction scheduled for October 19, 2026.

According to the offer circular released by the DMO, the settlement date for the auction is October 21, 2026.

The offer comprises three reopened bonds: N500 billion worth of 19 per cent FGN February 2034 bonds, N800 billion worth of 16.79 per cent FGN September 2036 bonds, and N450 billion worth of 15.45 per cent FGN June 2038 bonds.

The bonds are being offered on behalf of the Federal Government of Nigeria in accordance with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, Cap. L17, Laws of the Federation of Nigeria, 2004.

The DMO stated that the bonds would be sold at N1,000 per unit, subject to a minimum subscription of N50,001,000, with additional subscriptions in multiples of N1,000.

For the reopened bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the instruments.

Interest on the bonds is payable semi-annually, while the principal will be repaid in full on the respective maturity dates.

The DMO noted that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

The bonds also qualify as government securities under the Companies Income Tax Act and the Personal Income Tax Act for tax exemption purposes applicable to pension funds and other investors.

The bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. They also qualify as liquid assets for calculating banks’ liquidity ratios.

According to the offer circular, the FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the country’s general assets.

The DMO advised interested investors to contact any of the designated Primary Market Dealers (PMDs), including Access Bank, Citibank Nigeria, Coronation Merchant Bank, Ecobank Nigeria, FBNQuest Merchant Bank, First Bank of Nigeria, First City Monument Bank, 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 office added that it reserves the right to allot the FGN bonds at its discretion.