The latest debt issuance features four previously issued government securities, with maturities stretching from 2028 to 2033, as the Federal Government seeks fresh investment through the domestic bond market……
The Federal Government has put N2 trillion worth of bonds on the market as the Debt Management Office (DMO) prepares to conduct its November 2026 Federal Government of Nigeria (FGN) bond auction.
The offer, detailed in the DMO’s latest auction circular, covers four existing government bond instruments with maturity dates ranging from March 2028 to May 2033.
The auction is scheduled for November 16, 2026, while successful subscriptions will be settled on November 18.
The issuance gives investors another opportunity to invest in Federal Government securities, which offer fixed interest payments every six months and repayment of the principal amount upon maturity.
The N2 trillion offer is distributed across four previously issued bonds, with the August 2030 instrument receiving the largest allocation of N750 billion.
The breakdown shows that N700 billion has been set aside for the 21.00 per cent FGN March 2028 bond, while N250 billion is allocated to the 19.30 per cent FGN April 2029 bond.
The remaining offers comprise N750 billion for the 17.945 per cent FGN August 2030 bond and N300 billion for the 19.89 per cent FGN May 2033 bond.
Since the government is reopening existing instruments rather than introducing entirely new bonds, the original coupon rates will remain unchanged.
However, the prices investors pay will depend on the yield-to-maturity rates submitted during the auction and accepted by the DMO. Accrued interest will also be factored into the transaction.
The minimum subscription is N50.001 million, while additional investments can be made in multiples of N1,000. Each bond unit carries a nominal value of N1,000.
Under the terms of the offer, investors will receive interest payments twice a year, with the principal repaid in full on the respective maturity dates.
The bonds also come with regulatory and investment benefits that make them eligible for several institutional investment categories.
According to the DMO, the instruments qualify as trustee investments under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act.
They also enjoy applicable tax exemptions for pension funds and other eligible investors.
In addition, the securities will be listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, providing investors with access to the secondary market.
Commercial banks can also count the bonds as liquid assets when calculating their liquidity ratios.
The Federal Government has backed the instruments with its full faith and credit, with the securities charged upon the country’s general assets.
Investors interested in the offer are expected to submit their bids through the DMO’s appointed Primary Dealer Market Makers (PDMMs).
The participating institutions include Access Bank, First Bank, Stanbic IBTC, Citibank, United Bank for Africa, Guaranty Trust Bank and Zenith Bank.
The DMO, however, retains the authority to determine the final volume of bonds allotted to investors.
The latest issuance comes after the Federal Government’s October 2026 bond auction, where the DMO offered N1.75 trillion across three instruments with maturities in February 2034, September 2036 and June 2038.
The October exercise recorded subscriptions of approximately N1.75 trillion, although investor demand varied across the three instruments.
The February 2034 bond attracted N304.08 billion in bids, while the September 2036 and June 2038 instruments received N925.35 billion and N518.32 billion, respectively.
However, the DMO allotted N78.36 billion to the February 2034 bond, N781.31 billion to the September 2036 instrument and N350.72 billion to the June 2038 bond.
The corresponding marginal rates stood at 16.99 per cent, 17.29 per cent and 17.19 per cent, while the original coupon rates of 19.00 per cent, 16.79 per cent and 15.45 per cent were retained.
Meanwhile, data from the Financial Markets Dealers Association’s October 2026 market report showed that total allotments across Nigeria’s government securities auctions fell by 55.86 per cent to N9.501 trillion in October, compared with N21.527 trillion recorded in September.
The decline points to a significant reduction in government securities allotments during the period, setting the stage for the latest N2 trillion bond offer as the Federal Government returns to the domestic debt market.
