FG to Raise N900 Billion in January 2026 Bond Auction

The Debt Management Office (DMO) has announced plans to raise N900 billion through the reopening of three federal bonds in its January 2026 auction, scheduled for January 26, 2026, with settlement on January 28, 2026.

Okay News reports that the offering includes:

• N300 billion from the 18.50% FGN February 2031 bond
• N400 billion from the 19.00% FGN February 2034 bond
• N200 billion from the 22.60% FGN January 2035 bond

Each bond is offered at N1,000 per unit, with a minimum subscription of N50,001,000 and subsequent increments in multiples of N1,000.

Coupon rates are fixed, and successful bidders will pay a price reflecting the yield-to-maturity that clears the auction volume, plus accrued interest.

Interest is paid semi-annually, with principal repaid in full at maturity under a bullet repayment structure.

Total bond allotments in 2025 reached approximately N5.12 trillion, reflecting strong investor demand for government securities.

The reopenings provide medium- and long-term investment options for pension funds, insurance companies, and individual investors.

The bonds qualify as trustee investments under the Trustee Investment Act, are recognised as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), and are eligible for tax exemptions.

They will be listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, ensuring tradability and transparency.

FGN bonds count as liquid assets for banks in liquidity ratio calculations and are backed by the full faith and credit of the Federal Government.

Applications must be submitted through authorised Primary Dealer Market Makers (PDMMs).

The January auction forms part of the FGN’s domestic borrowing strategy to finance budgetary obligations while deepening the domestic debt market and providing stable, long-term investment opportunities.