The Debt Management Office (DMO) has announced plans to raise between N1 trillion and N1.2 trillion through the reopening of three Federal Government of Nigeria (FGN) bonds at its July bond auction, as the Federal Government continues to finance budgetary needs through the domestic debt market.
The bond auction comes amid sustained liquidity management by the Central Bank of Nigeria (CBN), which has continued to deploy Open Market Operations (OMO) to mop up excess liquidity from the financial system. The apex bank’s tight monetary stance has kept yields on government securities elevated, making FGN bonds increasingly attractive to institutional investors seeking relatively risk-free returns.
According to the DMO’s Offer Circular released on Tuesday, the auction is scheduled for July 20, with settlement expected on July 22. The offer comprises the reopening of the 22.60 per cent FGN January 2035 bond, the 16.2499 per cent FGN April 2037 bond, and the 15.45 per cent FGN June 2038 bond.
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The agency plans to raise between N500 billion and N600 billion from the January 2035 bond, while the April 2037 bond will be offered in the range of N400 billion to N500 billion. The June 2038 bond will account for an additional N100 billion, bringing the total targeted issuance to between N1 trillion and N1.2 trillion.
The bonds are priced at N1,000 per unit, with a minimum subscription of N50.001 million and additional investments in multiples of N1,000. Successful bidders will pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest. Coupon payments will be made semi-annually, while the principal will be repaid in full at maturity.
The July issuance forms part of the Federal Government’s domestic borrowing programme for the third quarter of 2026, with the DMO opting to reopen existing benchmark bonds rather than issue new instruments. Market analysts say the strategy is aimed at deepening liquidity in the secondary market, improving price discovery and enhancing trading efficiency.
The DMO has indicated that the July auction marks the first in its third-quarter issuance calendar, with additional auctions scheduled for August and September as the government seeks to fund budget implementation while maintaining an active presence in the domestic debt market.
