Bonds worth ₦1.75 trillion have been offered by the Federal Government for subscription at an October 19 auction, featuring annual coupon rates of 19 per cent, 16.79 per cent and 15.45 per cent.
The Federal Government has offered ₦1.75 trillion worth of bonds for subscription at an auction scheduled for October 19, 2026, as it continues to raise funds through the domestic debt market.
The Debt Management Office (DMO), which announced the offer in a circular published on October 12, said the auction would comprise three previously issued Federal Government of Nigeria (FGN) bonds being reopened to investors.
The offer consists of ₦500 billion of a 10-year bond carrying an annual coupon rate of 19 per cent, ₦800 billion of another 10-year bond at 16.79 per cent, and ₦450 billion of a 15-year bond at 15.45 per cent.
The three securities are the 19 per cent FGN February 2034 bond, the 16.79 per cent FGN September 2036 bond and the 15.45 per cent FGN June 2038 bond, according to the DMO’s offer details.
The debt office fixed October 21, 2026, as the settlement date for successful bids.
According to the DMO, the bonds will be sold in units of ₦1,000, with a minimum subscription of ₦50,001,000. Additional subscriptions must be made in multiples of ₦1,000.
Because the securities are reopened issues with established coupon rates, successful bidders will pay prices based on their accepted yield-to-maturity bids, together with accrued interest where applicable.
This means the coupon rate is not necessarily the same as the yield an investor will earn if the bond is purchased at a price above or below its face value.
The DMO said the bonds were listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.
It added that the securities 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, subject to the applicable provisions.
The circular also stated that FGN bonds qualify as liquid assets for calculating banks’ liquidity ratios.
The DMO said interest on the bonds would be paid twice a year, while the principal would be repaid in a lump sum on each bond’s respective maturity date.
FGN bonds are debt instruments issued by the DMO on behalf of the Federal Government to raise funds for public financing requirements.
Investors lend money to the government by purchasing the securities and receive periodic coupon payments under the terms of the bond.
The bonds are backed by the Federal Government of Nigeria, although investors should still consider inflation, interest-rate movements and market-price fluctuations when assessing their investment options.
The DMO advised interested investors to contact designated Primary Dealer Market Makers (PDMMs) to participate in the auction.
The listed institutions include Access Bank Plc, Citibank Nigeria Limited, First Bank of Nigeria Limited, United Bank for Africa Plc, Zenith Bank Plc and Guaranty Trust Bank Limited.
Other designated dealers include Stanbic IBTC Bank Limited, FBNQuest Merchant Bank Limited, Coronation Merchant Bank Limited, Ecobank Nigeria Limited, First City Monument Bank Plc, Standard Chartered Bank Nigeria Limited, FSDH Merchant Bank Limited and Rand Merchant Bank Nigeria Limited.
The debt office reserved the right to allot the bonds at its discretion.
The October offer forms part of the DMO’s planned domestic borrowing programme for the fourth quarter of 2026. Its provisional calendar also provides for bond offers of ₦2 trillion each in November and December, bringing planned fourth-quarter offers to ₦5.75 trillion, subject to revision.
The October auction will provide investors with another opportunity to subscribe to government securities offering fixed coupon payments over medium- and long-term investment horizons.
Visit GMTNewsng for more news stories.
