DMO Offers N1tn FGN Bonds, Sets N50m Minimum Subscription

The Debt Management Office (DMO) has opened subscriptions for two Federal Government of Nigeria (FGN) bonds worth a combined N1tn, with the securities offered at N1,000 per unit.

The DMO disclosed the offer on Monday, saying it comprises a new 10-year FGN bond valued at N400bn and a reopening of an existing 15-year bond worth N600bn.

The new 10-year bond is scheduled to mature in September 2036, while the reopened 15-year bond, which carries a coupon rate of 15.45 per cent per annum, will mature in 2038.

The offer opened on September 14, 2026, with settlement scheduled for September 16.

Minimum subscription set at N50m

According to the DMO, the bonds are offered at N1,000 per unit, subject to a minimum subscription of N50m and additional investments in multiples of N1,000.

“The FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter,” the DMO said.

For reopened bonds where the coupon rate has already been determined, successful bidders will pay a price corresponding to the yield-to-maturity that clears the volume offered at the auction, in addition to any accrued interest.

Interest payments on the bonds will be made twice a year, while the principal will be repaid in full at maturity.

“Interest is payable semi-annually, while bullet repayment is on the maturity date,” the agency stated.

Government backing and investment status

The DMO said the bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the country’s general assets.

The securities also qualify as investments for trustees under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act, making them eligible for applicable tax exemptions.

The bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, providing investors with access to secondary-market trading.

They also qualify as liquid assets for the purpose of calculating banks’ liquidity ratios.

FGN bonds are fixed-income debt instruments issued by the DMO on behalf of the Federal Government. Through the securities, investors effectively lend funds to the government in exchange for periodic interest payments and repayment of the principal at maturity.

The government uses proceeds from bond issuances as part of its financing programme, including funding budgetary expenditure, infrastructure and other public-sector obligations.

The latest N1tn offering provides institutional and other eligible investors with access to long-term sovereign debt instruments while supporting the Federal Government’s domestic borrowing programme.