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

The Debt Management Office (DMO) has announced plans to raise N1.2 trillion through the reopening of three Federal Government of Nigeria (FGN) bonds as part of the Federal Government’s domestic borrowing programme.

The offer, contained in an Offer Circular released on Tuesday, is scheduled for auction on July 20, 2026, with settlement of successful bids fixed for July 22, 2026.

Under the offer, the DMO will issue N400 billion each across three bond instruments comprising the 22.60 per cent FGN January 2035 Bond (10-year reopening), the 15.45 per cent FGN June 2038 Bond (15-year reopening) and the 16.2499 per cent FGN April 2037 Bond (20-year reopening).

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.

According to the circular, the bonds will be offered at N1,000 per unit, with a minimum subscription of N50.001 million, while additional investments will be accepted in multiples of N1,000.

Successful investors will pay a price determined by the yield-to-maturity that clears the auction, in addition to any accrued interest on the reopened bonds.

Interest on the securities will be paid semi-annually throughout their tenor, while the principal will be redeemed in full upon maturity.

The DMO stated that the bonds are backed by the full faith and credit of the Federal Government and constitute a charge on the general assets of the federation.

The debt office also noted that the instruments qualify as trustee investments under the Trustee Investment Act and enjoy tax-exempt status under the Company Income Tax Act and the Personal Income Tax Act.

The bonds are eligible investments for pension funds and other institutional investors. They are also listed on the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, while qualifying as liquid assets for banks in the computation of statutory liquidity ratios.

The DMO advised interested investors to submit their bids through any of the approved Primary Dealer Market Makers (PDMMs), including Access Bank, Citibank Nigeria, First Bank of Nigeria, Guaranty Trust Bank, Stanbic IBTC Bank, United Bank for Africa and Zenith Bank, among others.

The office added that it reserves the right to determine the final allotments after the auction.

The July issuance forms part of the Federal Government’s domestic debt strategy to finance budget implementation, bridge the fiscal deficit and refinance maturing obligations.

The offer follows the DMO’s June 2026 bond auction, during which it reopened two FGN bond instruments to raise N1.2 trillion, offering N600 billion each in a 10-year and a 20-year bond.

The continued reopening of existing bond issues reflects the government’s strategy of deepening liquidity in the domestic bond market while providing investors with access to long-term sovereign debt instruments.