June 16, (THEWILL) — The Debt Management Office (DMO), acting on behalf of the Federal Government of Nigeria, plans to raise ₦1.2 trillion through the reopening of two Federal Government of Nigeria (FGN) bonds at an auction scheduled for June 22, 2026.
According to the DMO’s offer circular released on June 15, the government will offer ₦600 billion each in a 10- and 20-year bond, with settlement set for June 24, 2026. The issuance forms part of the government’s domestic borrowing programme and comes amid elevated yields in the fixed-income market.
The instruments on offer are the 22.60 percent FGN JAN 2035 bond, a 10-year reopening valued at ₦600 billion, and the 16.2499 percent FGN APR 2037 bond, a 20-year reopening also worth ₦600 billion.
Successful investors will pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the bonds. Subscriptions are priced at ₦1,000 per unit, with a minimum investment requirement of ₦50.001 million and additional purchases in multiples of ₦1,000. Coupon payments will be made semi-annually, while the principal will be repaid in full at maturity.
The planned ₦1.2 trillion issuance comes at a time when the Central Bank of Nigeria (CBN) is aggressively tightening liquidity through Open Market Operations (OMO), a move that has pushed yields higher across the fixed-income market. Market analysts view the size of the offer as one of the largest single FGN bond auctions in recent months, underscoring the government’s funding needs and prevailing liquidity management measures.
While the 10-year bond carries a significantly higher coupon rate of 22.60 percent, the longer-dated 2037 bond offers a lower coupon of 16.2499 percent, reflecting the interest rate environment at the time of its original issuance. Despite the lower coupon, demand for long-term FGN securities has remained strong, particularly from pension fund administrators and insurance firms seeking tax-exempt assets that match their long-term liabilities.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
