The Debt Management Office (DMO), on behalf of the Federal Government, has announced a fresh N600 billion Federal Government of Nigeria bond auction scheduled for May 2026.
The bond issuance forms part of the government’s strategy to finance fiscal obligations, support infrastructure spending, deepen the domestic capital market and attract institutional investors amid sustained demand for fixed-income assets.
According to the offer circular released by the DMO, the auction will hold on May 18, 2026, while settlement for successful subscriptions is scheduled for May 20, 2026.
Two Re-Opened Bond Instruments Offered
The DMO disclosed that the auction consists of two re-opened FGN bond instruments valued at N300 billion each:
- N300 billion 22.60% FGN January 2035 10-year re-opening bond
- N300 billion 16.2499% FGN April 2037 20-year re-opening bond
The agency stated that:
- Bond units are priced at N1,000 each
- Minimum subscription is N50,001,000
- Additional investments are permitted in multiples of N1,000
Because both instruments are re-openings of previously issued bonds, the coupon rates have already been fixed.
Interest payments will be made semi-annually, while repayment of the principal will follow a bullet repayment structure at maturity.
The DMO added that successful bidders will pay according to the yield-to-maturity that clears the auction, alongside accrued interest.
FG Continues Domestic Borrowing Strategy
The latest issuance highlights the Federal Government’s continued reliance on domestic borrowing to fund budget deficits, refinance existing debt obligations and reduce exposure to foreign currency risks.
Compared with April 2026, the government reduced the size of the offer by N100 billion.
In April, the DMO offered N700 billion across three bond instruments, including:
- A 10-year 2035 bond
- A 7-year 2032 bond
- A 5-year 2030 bond
Analysts say the reduction to N600 billion may reflect improved liquidity conditions, stronger oil revenues and ongoing efforts to manage rising debt service costs.
Bonds Backed by Federal Government
The DMO emphasised that the instruments are backed by the full faith and credit of the Federal Government of Nigeria.
The bonds also come with several regulatory and tax advantages, including:
- Qualification as trustee investment securities under the Trustee Investment Act
- Recognition as government securities under the Company Income Tax Act and Personal Income Tax Act
- Eligibility for tax exemptions for pension funds and certain institutional investors
- Listing on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange for secondary market trading
- Qualification as liquid assets for banks’ liquidity ratio calculations
Approved Banks to Handle Applications
Interested investors were advised to submit applications through approved Primary Dealer Market Makers (PDMMs), including:
