April 27, (THEWILL) — The Debt Management Office (DMO), acting on behalf of the Federal Government of Nigeria, is set to raise N700 billion through a Federal Government Bond (FGN) auction scheduled for Monday, April 27, 2026.
Details contained in the official offer circular issued to Primary Dealer Market Makers (PDMMs) show that the issuance forms part of the government’s domestic borrowing strategy to finance budgetary obligations and manage public debt.
According to the circular, the N700 billion will be raised through the re-opening of three existing bond instruments across varying maturities.
Specifically, N300 billion will be offered in the 17.945 percent FGN AUG 2030 (5-year tenor), N100 billion in the 17.95 percent FGN JUN 2032 (7-year tenor), and another N300 billion in the 22.60 percent FGN JAN 2035 (10-year tenor).
The auction will follow a competitive bidding process, with successful bidders required to pay a price that reflects the yield-to-maturity that clears the market, in addition to any accrued interest. Settlement is scheduled for April 29, 2026.
Each bond unit is priced at N1,000, with a minimum subscription of N50.001 million and additional investments accepted in multiples of N1,000. Interest payments will be made semi-annually, while the principal will be repaid in full upon maturity.
The auction comes at a time of elevated yields in the fixed-income market, alongside continued liquidity tightening by the Central Bank of Nigeria.
Despite these conditions, FGN securities have maintained strong investor appeal, largely due to their relative safety and competitive returns.
Market analysts expect robust participation, particularly for the longer-tenor 2035 bond, which offers the highest coupon rate at 22.60 percent, as investors position to capitalize on prevailing high-yield opportunities.
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.
