The Nigerian Debt Management Office (DMO) has announced plans to offer N800 billion in federal government bonds at N1,000 per unit, marking one of the highest-yielding bond sales in recent years.
The DMO revealed the offer in a social media post on Tuesday, detailing three separate bond issues.
According to the debt office, the offers comprise a N400 billion bond at an interest rate of 17.95 per cent per annum, due in June 2032 (seven-year reopening).
The issuance also includes an N300 billion bond at a yield of 19.89 per cent, expected to be due in May 2034 (10-year reopening).
In addition, the DMO offered a N100 billion bond at a 19 per cent interest rate due in February 2034 (10-year reopening).
The agency said the auction date is February 23, while the settlement is scheduled for February 25, 2026.
“Units of sale are N1,000 per unit, subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter,” DMO said.
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Explaining the pricing for the reopened bonds, the DMO said, “For re-openings of previously issued bonds (where the coupon is already set), 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.”
The DMO said interest is “payable semi-annually”, while redemption will be through “bullet repayment on the maturity date”.
The debt office said the bonds “qualify as securities in which trustees can invest under the Trustee Investment Act.”
It also “qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA) for tax exemption for pension funds amongst other investors,” it added.
According to the DMO, the bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and “all FGN bonds qualify as liquid assets for liquidity ratio calculation for banks.”
The bonds are backed by the full faith and credit of the federal government of Nigeria and are charged upon the general assets of Nigeria.
The DMO added that it “reserves the right to allot the bonds at its discretion”, urging interested persons to visit authorised banks.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
