Advertisement
FG offers N2trn bonds to Investors in November
The Federal Government has offered N2 trillion worth of bonds to investors in its November 2026 issuance, as it continues to rely on the domestic debt market to finance its borrowing requirements.
The Debt Management Office (DMO), in an offer circular, said the November 16 auction would feature four previously issued Federal Government of Nigeria (FGN) bonds with maturities ranging from March 2028 to May 2033.
The offer comprises N700 billion of the 21.00 per cent FGN March 2028 bond, N250 billion of the 19.30 per cent FGN April 2029 bond, N750 billion of the 17.945 per cent FGN August 2030 bond and N300 billion of the 19.89 per cent FGN May 2033 bond.
The August 2030 bond accounts for the largest portion of the offer, representing N750 billion, while the April 2029 instrument has the smallest allocation of N250 billion.
The auction is scheduled for November 16, with settlement fixed for November 18, 2026.
The November issuance comes amid the Federal Government’s continued reliance on the domestic debt market to raise funds, with government securities offering investors relatively predictable returns through semi-annual interest payments.
Since the instruments are reopenings of existing bonds, their original coupon rates will remain unchanged.
However, successful investors will pay prices determined by the yield-to-maturity rates established at the auction, alongside any accrued interest.
The DMO said the bonds have a minimum subscription of N50.001 million, while additional investments can be made in multiples of N1,000. Each unit is priced at N1,000.
Interest will be paid twice yearly, while the principal will be repaid in full at maturity.
The bonds also qualify as investments for trustees under the Trustee Investment Act and as government securities under the Companies Income Tax Act and Personal Income Tax Act.
They will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange and qualify as liquid assets for banks in calculating their liquidity ratios.
The securities are backed by the full faith and credit of the Federal Government and charged upon the country’s general assets.
Investors interested in the offer can submit applications through the DMO’s appointed Primary Dealer Market Makers, including Access Bank, First Bank, Stanbic IBTC, Citibank, United Bank for Africa, Guaranty Trust Bank and Zenith Bank.
The November offer followed the October 2026 bond auction, in which the government offered N1.75 trillion across three instruments maturing in February 2034, September 2036 and June 2038.
The auction attracted subscriptions of approximately N1.75 trillion, comprising N304.08 billion for the February 2034 bond, N925.35 billion for the September 2036 bond and N518.32 billion for the June 2038 instrument.
However, the DMO allotted N78.36 billion, N781.31 billion and N350.72 billion to the respective instruments, with marginal rates of 16.99 per cent, 17.29 per cent and 17.19 per cent.
The original coupon rates of the October bonds, at 19.00 per cent, 16.79 per cent and 15.45 per cent, were retained.
