DMO to Sell N1.1trn FGN Bonds Today

By Aduragbemi Omiyale

FGN bonds worth N1.1 trillion would be offered for sale to investors by the Debt Management Office (DMO) today, Monday, August 17, 2026.

The debt instruments would be sold through a primary market auction in three tenors: 10, 15, and 20 years. They are all re-opening notes, meaning they have been issued before and do not have the full term.

According to a circular from the debt office,

Business Post reports that the DMO is selling N250 billion worth of the 10-year note with a coupon of 22.60 per cent, while the N750 billion worth of the 15-year paper with a coupon of 15.45 per cent is to be auctioned, and N100 billion worth of the 20-year instrument with a coupon of 16.2499 per cent is on sale today.

To subscribe to the bonds, investors are required to pay N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter. The notes can be purchased through primary dealer market makers, which are the main commercial banks and others.

It was stated that successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument because the papers are reopening, as their coupons (interest) are already set.

Bondholders will receive their interest payment twice a year, with the bullet repayment on the maturity date.

The FGN bond qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities for tax exemption and can be used as liquid assets for liquidity ratio calculation for banks.

After the exercise today, the bond will be listed on the Nigerian Exchange (NGX) Limited and the FMDQ Securities Exchange to allow for trading in the secondary market, where it can be liquidated before maturity.

The FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.