The Debt Management Office (DMO), acting on behalf of the Federal Government, has announced the opening of subscriptions for three Federal Government bonds valued at a combined N1.2 trillion, with the auction scheduled for July 20, 2026. Settlement for successful bids will occur on July 22, 2026.
Bond Details and Interest Rates
According to a circular issued by the DMO on Tuesday, July 14, 2026, the offer consists of three reopened bond issues, each worth N400 billion. The first instrument is a 10-year bond reopening maturing in January 2035, carrying a 22.60% annual coupon rate. The second is a 15-year bond due in June 2038, with an annual interest rate of 15.45%. The third is a 20-year bond maturing in April 2037, offering a 16.249% yearly coupon.
Subscription Terms and Pricing
The bonds are being offered at N1,000 per unit, with a minimum subscription of N50.001 million. Additional investments are accepted in multiples of N1,000. Because these are reopened issues, successful bidders will pay a price determined by the yield-to-maturity that clears the auction volume, plus any accrued interest on the bonds.
Tax Benefits and Secondary Market Listing
The DMO noted that interest payments will be made semi-annually, and the full principal will be repaid at maturity. The securities qualify as trustee investment assets under the Trustee Investment Act and are eligible for tax exemptions under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA) for pension funds and other eligible institutional investors. The bonds are listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, making them tradable in the secondary market. They also qualify as liquid assets for banks in calculating regulatory liquidity ratios.
Government Guarantee
The DMO stressed that the bond issues are fully backed by the Federal Government of Nigeria, with repayment guaranteed by the general assets of the federation.
Context: Nigeria's Domestic Borrowing
In a related development, Legit.ng earlier reported that the Federal Government drew a net N7.6 trillion from Nigeria's domestic debt market in the first six months of 2026. According to a report, the DMO raised N3.18 trillion through treasury bills and N4.42 trillion via FGN bonds over the period. Total subscriptions for treasury bills reached N38.67 trillion, nearly three times the volume offered and slightly above the 2.8 times subscription ratio recorded during the same period in 2025.
