The Federal Government has announced a fresh N1.1 trillion Federal Government of Nigeria (FGN) bond offer, with the Debt Management Office (DMO) fixing August 17, 2026, for the auction as it intensifies efforts to mobilise long-term funds from the domestic capital market to finance public expenditure.
The offer, unveiled in a statement issued on Thursday, comprises three re-opened FGN bond issues with varying tenors and coupon rates, providing institutional investors and qualified high-net-worth individuals another opportunity to invest in sovereign debt instruments backed by the Federal Government.
According to the DMO, the first tranche is the January 2035 FGN Bond, a 10-year re-opening valued at N250 billion, carrying an annual coupon rate of 22.60 per cent.
The second offer is the April 2037 FGN Bond, a 20-year re-opening worth N100 billion, with a coupon rate of 16.2499 per cent per annum.
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The largest portion of the issuance is the June 2038 FGN Bond, a 15-year re-opening valued at N750 billion, offering investors an annual coupon of 15.45 per cent.
The agency disclosed that subscriptions are priced at N1,000 per unit, subject to a minimum investment of N50 million and in multiples of N1,000 thereafter.
It stated that the bond auction will hold on August 17, while successful subscriptions will be settled on August 19.
The DMO explained that because the securities are re-openings of previously issued bonds, successful bidders would pay a price determined by the yield-to-maturity that clears the auction rather than the face value, in addition to any accrued interest already earned on the instruments.
It added that interest payments would be made to investors every six months throughout the tenor of the bonds, while the principal would be repaid in full on the respective maturity dates.
The office reaffirmed that all FGN bonds remain fully backed by the full faith and credit of the Federal Government and are charged upon the general assets of the federation, making them among the safest investment instruments in Nigeria’s financial market.
According to the DMO, the securities qualify as approved investments under the Trustee Investment Act and are recognised as government securities under both the Company Income Tax Act and the Personal Income Tax Act, enabling pension funds and other eligible investors to benefit from applicable tax exemptions.
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It further noted that the bonds are listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, providing investors with liquidity through the secondary market, while commercial banks may also classify them as liquid assets for statutory liquidity ratio calculations.
The DMO said the bond offer is primarily targeted at institutional investors, including pension fund administrators, commercial and merchant banks, insurance companies, asset managers and corporate treasury desks. However, qualified high-net-worth individuals who meet the minimum subscription requirement are also eligible to participate.
The agency explained that by subscribing to FGN bonds, investors lend funds to the Federal Government in exchange for fixed interest payments at regular intervals, with the principal repaid upon maturity. The instruments have remained a preferred investment option for institutional investors because they combine sovereign backing with predictable returns and relatively low investment risk.
