FG to Auction N1.2trn Bonds at N1,000 Per Unit: Here's What Investors Need to Know
- The DMO will auction N1.2 trillion worth of Federal Government bonds on July 20, with settlement scheduled for July 22
- The three reopened bond offers carry interest rates of 22.60%, 15.45%, and 16.249%, with a minimum subscription of N50.001 million
- The bonds are backed by the Federal Government, listed on the NGX and FMDQ, and offer tax benefits for qualified investors
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
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 to take place on July 20, 2026.
According to a circular issued by the agency on Tuesday, July 14, 2026, the offer consists of three reopened bond issues, each worth N400 billion, while successful subscriptions will be settled on July 22, 2026.
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Source: UGC
Three bond offers available to investors
The DMO said 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%, while the third is a 20-year bond maturing in April 2037, offering a 16.249% yearly coupon.
The agency explained that the bonds are being offered at N1,000 per unit, with a minimum subscription of N50.001 million and additional investments accepted in multiples of N1,000.
It further clarified that because the securities are reopened issues, investors whose bids are successful will pay a price determined by the yield-to-maturity that clears the auction volume, in addition to any accrued interest on the bonds.
Tax benefits, exchange listing and government guarantee
The DMO noted that interest payments on the bonds will be made every six months, while investors will receive the full principal amount once each bond reaches its maturity date.
The office added that 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.
Source: UGC
The bonds are also 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.
The debt office stressed that the bond issues are fully backed by the Federal Government of Nigeria, with repayment guaranteed by the general assets of the federation.
FG borrows N7.6trn from domestic debt market
Meanwhile, Legit.ng earlier reported that the FG drew a net N7.6 trillion from Nigeria's domestic debt market in the first six months of 2026.
The figures which emerged from a report detailed how 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.
Source: Legit.ng
