The Debt Management Office (DMO) is targeting to raise N900 billion from the January 2026 Federal Government of Nigeria (FGN) bond auction.
The DMO is offering a combined N900 billion across three reopened instruments. This auction provides investors with an opportunity to access secure, medium-to-long-term fixed-income investments backed by the full faith and credit of the Federal Government.
The DMO, in a statement, said the auction is scheduled for January 26, 2026, while the settlement date is January 28, 2026. The offer includes three categories of bonds. The first is an offer of N300 billion FGN February 2031 with a seven-year maturity period, offered at 18.50 per cent.
The second one is N400 billion FGN February 2034 with a 10-year maturity period, offered at 19 per cent, while the third one is a N200 billion FGN January 2035 with a 10-year maturity period, offered at 22.60 per cent.
These bonds form a significant part of the government’s domestic borrowing strategy to finance the N15 trillion 2026 budget deficit.The bonds are available in units of N1,000, with a minimum subscription set at N50,001,000. DMO says investors may increase their subscriptions in increments of N1,000.
They offer semi-annual interest payments, ensuring consistent income for holders, and will be redeemed in full upon maturity, providing a lump-sum repayment.
According to the DMO, tax exemptions under the Company Income Tax Act and the Personal Income Tax Act apply to the bonds, making them particularly attractive to pension funds and other approved investors.
Listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, the bonds are easily accessible and tradable. Also, financial institutions can use them to meet liquidity ratio requirements, as they are recognised as liquid assets.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria, adding a layer of security for investors. The government guarantee, charged upon the country’s general assets, further enhances the appeal of these bonds as a low-risk investment option.
Combined with reliable interest payments, they offer a stable and predictable return for investors seeking fixed-income assets. To participate in the auction, prospective investors must subscribe through authorised Primary Dealer Market Makers such as Access Bank, Zenith Bank, Stanbic IBTC Bank, and United Bank for Africa.
This auction comes at a time when the government continues to prioritise domestic borrowing due to rising external borrowing costs, foreign exchange pressures, increased fiscal needs and refinancing obligations, and the need to deepen domestic capital markets.
Nigeria raised over N5 trillion through FGN bond auction in 2025 to support its fiscal deficit. It is obviously hoping to surpass that figure in 2026.