The Debt Management Office (DMO) has announced the reopening of two Federal Government of Nigeria (FGN) bonds, aiming to raise a combined ₦1.2 trillion at an auction scheduled for Sunday, June 22, 2026.
In an official offer circular published Monday, June 15, the DMO disclosed it will offer ₦600 billion each in a 10-year and a 20-year bond reopening, with settlement set for Tuesday, June 24, 2026.
Key details of the bond reopening
| Parameter | 10-Year Bond | 20-Year Bond |
| Instrument | 22.60% FGN JAN 2035 | 16.2499% FGN APR 2037 |
| Offer Size | ₦600 billion | ₦600 billion |
| Coupon Rate | 22.60% | 16.2499% |
| Maturity | January 2035 | April 2037 |
The ₦1.2 trillion issuance forms part of the Federal Government’s domestic borrowing programme aimed at funding budgetary obligations and managing public debt.
Subscription requirements
- Price per unit: ₦1,000
- Minimum investment: ₦50,001,000
- Multiples: ₦1,000 thereafter
- Interest payments: Semi-annual
- Principal repayment: Full lump sum at maturity
Market context
The June 22 auction comes amid the Central Bank of Nigeria‘s aggressive liquidity tightening through Open Market Operations (OMO), which has triggered significant yield increases in the fixed income market. The ₦1.2 trillion represents one of the largest single FGN bond auction offers in recent months, suggesting further liquidity tightening.
Notably, the 10-year bond carries a significantly higher coupon (22.60%) than the 20-year bond (16.2499%), reflecting the rate environments prevailing when each instrument was originally issued. The lower coupon on the longer-dated 2037 bond means successful bidders are likely to price it at a discount.
Investor appeal
Investor appetite for longer-dated FGN paper has remained consistently robust, supported by pension funds and insurance companies seeking duration-matched, tax-exempt instruments.
FGN Bonds are backed by the full faith and credit of the Federal Government, making them among the safest domestic investment instruments available. They are listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, providing secondary market liquidity.
Tax benefits and regulatory status
- Qualify as liquid assets for banks’ liquidity ratio calculations
- Exempt from certain taxes for pension funds under CITA and PITA
- Qualify as securities for trustees under the Trustee Investment Act
Market participants will likely watch the June 22 auction to gauge yield direction, particularly on the longer end of Nigeria’s sovereign yield curve, as yields have been trending higher in both primary and secondary markets.
