The Federal Government plans to raise ₦600 billion through a fresh bond auction, as it seeks to finance government operations and manage public debt.
The Debt Management Office (DMO) announced the offer in a circular released on Wednesday, May 13.
It stated that on behalf of the Federal Government of Nigeria (FGN), it is offering two bonds for subscription by auction, both reopening previously issued instruments.
The bonds include ₦300 billion of 22.60 per cent FGN January 2035 (10-year re-opening) and ₦300 billion of 16.2499 per cent FGN April 2037 (20-year re-opening).
It said the auction is scheduled for May 18, 2026, while the settlement will take place on May 20, 2026.
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The DMO stated that the bonds are issued under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004.
According to the circular, units will be sold at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and in multiples of ₦1,000 thereafter.
For the reopened bonds, the DMO explained that investors will pay a price based on the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the instrument.
Interest will be paid semi-annually, while the principal will be repaid in a single lump sum at maturity.
The DMO said the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.
It added that they also qualify as government securities under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemption for pension funds and other approved investors.
The bonds will be listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. The DMO also noted that all Federal Government bonds qualify as liquid assets for banks in calculating liquidity ratios.
On security, the agency stated that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged on the general assets of the country.
The DMO said investors interested in the auction should contact any of the approved Primary Dealer Market Makers, including major commercial and merchant banks operating in the country.
The agency added that it also reserved the right to allot the bonds at its discretion.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X