By Ayo Kehinde
The Debt Management Office (DMO), acting on behalf of the Federal Government, has announced plans to raise N600 billion through a fresh Federal Government of Nigeria (FGN) bond auction scheduled for May 2026.
According to the offer circular released on Tuesday, the auction will be held on May 18, 2026, while settlement for successful investors is fixed for May 20, 2026.
The issuance forms part of the government’s ongoing strategy to finance budgetary obligations, strengthen the domestic debt market, and attract institutional investors amid sustained appetite for fixed-income securities.
The DMO said the offer comprises two reopened bond instruments valued at N300 billion each.
They include the 22.60 per cent FGN January 2035 10-year re-opening bond and the 16.2499 per cent FGN April 2037 20-year re-opening bond.
Each bond unit is priced at N1,000, while the minimum subscription stands at N50.001 million, with additional investments accepted in multiples of N1,000.
The agency explained that the coupon rates for both instruments remain unchanged because they are re-openings of previously issued bonds.
Interest payments will be made semi-annually, while the principal will be repaid in full at maturity under a bullet repayment structure.
Investors whose bids are successful will pay according to the yield-to-maturity that clears the auction, in addition to accrued interest.
The DMO also emphasized that the bonds are backed by the full faith and credit of the Federal Government of Nigeria.
Compared to April 2026, when the government offered N700 billion across three instruments, the May issuance reflects a N100 billion reduction, suggesting a more cautious borrowing strategy amid improving liquidity conditions and concerns over rising debt service costs.
The bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, while eligible investors may also benefit from tax incentives and regulatory advantages.
