FG offers N2trn Bonds, DMO opens November auction
The Federal Government has offered N2 trillion in bonds for subscription in its November 2026 issuance, providing investors with four instruments carrying coupon rates of between 17.945 per cent and 21 per cent.
The Debt Management Office (DMO), in an offer circular, said the auction would hold on November 16, with settlement scheduled for November 18, 2026.
The offer comprises four re-openings of previously issued Federal Government of Nigeria (FGN) bonds, with maturities ranging from March 2028 to May 2033.
The March 2028 bond, carrying a coupon rate of 21.00 per cent, accounts for N700 billion of the offer, while N250 billion is allocated to the April 2029 instrument with a 19.30 per cent coupon.
The August 2030 bond, with a coupon rate of 17.945 per cent, has the largest allocation of N750 billion, while the May 2033 bond, carrying a 19.89 per cent coupon, accounts for the remaining N300 billion.
The re-openings will retain their original coupon rates, while successful bidders will pay prices determined by the yield-to-maturity rates established at the auction, alongside applicable accrued interest.
Each bond unit is priced at N1,000, with a minimum subscription of N50.001 million and additional investments accepted in multiples of N1,000.
Interest payments will be made semi-annually, while principal repayments will be made in a lump sum at maturity.
The DMO said the securities qualify as investments for trustees under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act, including applicable tax exemptions for pension funds and other investors.
The bonds will also be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, qualify as liquid assets for banks in computing liquidity ratios and carry the full faith and credit of the Federal Government.
Investors can subscribe through the DMO’s appointed Primary Dealer Market Makers, including Access Bank, First Bank, Stanbic IBTC, Citibank, United Bank for Africa, Guaranty Trust Bank and Zenith Bank.
The DMO, however, reserved the right to determine the final allotment at its discretion.
The November issuance follows the October 2026 auction, in which the Federal Government offered N1.75 trillion across three bond instruments maturing in February 2034, September 2036 and June 2038.
The October auction attracted subscriptions of N304.08 billion for the February 2034 bond, N925.35 billion for the September 2036 instrument and N518.32 billion for the June 2038 bond.
The DMO allotted N78.36 billion, N781.31 billion and N350.72 billion to the respective instruments, with marginal rates of 16.99 per cent, 17.29 per cent and 17.19 per cent.
The original coupon rates of the three bonds, at 19.00 per cent, 16.79 per cent and 15.45 per cent, remained unchanged following the re-openings.
However, government securities auction allotments declined by 55.86 per cent to N9.501 trillion in October 2026 from N21.527 trillion in September, reflecting weaker demand ratios and the decision by monetary authorities to leave substantial investor bids unallotted, according to the Financial Markets Dealers Association’s October 2026 market report.
Editorial note: The October auction figures supplied require reconciliation: the three stated allotments total N1.21039 trillion, while subscriptions total approximately N1.748 trillion. The distinction between subscriptions and actual allotments is important to the story’s accuracy.
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