From Victor Osula, Abuja
Nigeria’s Debt Management Office (DMO) is auctioning ₦600 billion worth of reopened Federal Government bonds today, May 18, 2026, offering investors yields of up to 22.60 percent amid sustained tight monetary conditions in the fixed-income market.
The auction, conducted on behalf of the Federal Government, features two previously issued bond instruments with settlement scheduled for May 20, 2026. The offerings include a ₦300 billion 22.60 percent FGN Bond due January 2035 and a ₦300 billion 16.2499 percent FGN Bond due April 2037.
Both instruments will pay interest semi-annually, while principal repayment will be made in full at maturity. The bonds are priced at ₦1,000 per unit, with a minimum subscription of ₦50.001 million.
The reopening is being facilitated through a consortium of Primary Dealer Market Makers (PDMMs), including Access Bank, Zenith Bank, and Guaranty Trust Bank, among others.
As reopened issues, the coupon rates remain fixed, meaning successful bidders will pay prices that reflect the yield-to-maturity determined at the auction, in addition to accrued interest. The strategy enables the DMO to deepen liquidity in existing bond lines instead of issuing entirely new instruments.
Market analysts note that the significant spread between the 10-year bond yield of 22.60 percent and the 20-year bond yield of 16.2499 percent highlights the inverted yield curve currently shaping Nigeria’s debt market, driven largely by elevated interest rates and tighter monetary policy.
The bonds also retain key incentives for institutional investors. They qualify as trustee securities under the Trustee Investment Act, enjoy tax-exempt status for pension funds and eligible investors under CITA and PITA, and are listed on both the Nigerian Exchange and FMDQ OTC Securities Exchange.
Today’s offer marks the fifth bond reopening exercise by the DMO since December 2025, reinforcing the government’s reliance on domestic borrowing through established debt instruments.
