DMO Opens N1tn FGN Bond Offer, Sets N50m Minimum Subscription

The Debt Management Office (DMO) has opened a N1 trillion Federal Government of Nigeria (FGN) bond offer, giving investors an opportunity to subscribe to two debt securities with maturities in 2036 and 2038.

The DMO announced the offer on Monday, comprising a new 10-year FGN bond worth N400 billion and a N600 billion reopening of an existing 15-year bond. The offer opened on September 14, 2026, while settlement is scheduled for September 16.

The new 10-year bond is due in September 2036, while the reopened 15-year bond is due in 2038 and carries a coupon rate of 15.45 per cent per annum.

The bonds are being offered at N1,000 per unit, subject to a minimum subscription of N50 million and subsequent subscriptions in multiples of N1,000.

According to the DMO, investors bidding for the reopened bond will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, alongside any accrued interest. Interest on the bonds is payable twice a year, while the principal will be repaid in full at maturity.

The debt office said the securities are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria. The bonds also qualify as investments for trustees under the Trustee Investment Act and as government securities under relevant provisions of the Company Income Tax Act and Personal Income Tax Act.

The DMO added that the bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange. They also qualify as liquid assets for banks when calculating their liquidity ratios.

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

The proceeds from government bond issuance are used to finance government expenditure, including infrastructure and other public projects, making the latest N1 trillion offer another avenue for the Federal Government to raise funds from the domestic capital market.