The Debt Management Office (DMO) has unveiled plans for a fresh N600 billion Federal Government of Nigeria (FGN) bond issuance in May 2026 as part of ongoing efforts to fund the national budget, refinance maturing obligations, and deepen the domestic debt market.
According to an offer circular released on Tuesday, the auction is scheduled to hold on Monday, May 18, 2026, with settlement expected on Wednesday, May 20, 2026.
Bond Details
The offer comprises two re-opened instruments, with N300 billion allocated to each:
– 22.60% FGN January 2035 (10-year re-opening)
– 16.2499% FGN April 2037 (20-year re-opening)
The bonds are priced at N1,000 per unit, with a minimum subscription of N50,001,000 and additional amounts in multiples of N1,000. As re-openings of existing bonds, the coupon rates are already fixed, with interest payable semi-annually and principal repaid in full at maturity (bullet structure).
Successful bidders will pay yields determined at the auction plus accrued interest. The bonds are fully backed by the full faith and credit of the Federal Government.
Reduced Offer Size
The May issuance is N100 billion lower than the N700 billion offered in April. This more measured approach may reflect improved liquidity conditions in the financial system and the government’s efforts to carefully manage rising debt service costs amid higher oil revenues.
Investor Incentives
The FGN bonds offer several attractions for investors. They qualify as trustee investments, enjoy tax incentives under the Company Income Tax Act and Personal Income Tax Act, and are eligible for liquidity ratio calculations by banks. Pension funds and other institutional investors stand to benefit from applicable exemptions.
The instruments will be listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, providing liquidity through secondary market trading.
Subscription Process
Interested investors are required to submit bids through authorised Primary Dealer Market Makers (PDMMs), which include leading commercial banks such as Access Bank, First Bank, Zenith Bank, GTBank, UBA, Stanbic IBTC, Ecobank, and Standard Chartered Bank Nigeria.
This latest bond auction underscores the Federal Government’s preference for domestic borrowing to minimise foreign exchange risks while tapping into sustained appetite for high-yielding government securities in the current interest rate environment.
