The Federal Government is seeking to raise N1 trillion through its September 2026 bond auction, with the Debt Management Office setting a minimum subscription of N50.001 million for participating investors.
According to the latest DMO circular, the offer comprises N400 billion of a new 10-year Federal Government of Nigeria bond due in September 2036 and N600 billion of the 15.45 per cent FGN June 2038 bond, which is being reopened. The auction is scheduled for 14 September 2026, with settlement on 16 September.
Auction Terms
The bonds are sold at N1,000 per unit, subject to a minimum subscription of N50,001,000 and further amounts in multiples of N1,000. For the reopened June 2038 instrument, the coupon remains fixed at 15.45 per cent. Successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume offered, plus any accrued interest.
Interest is payable semi-annually, and the principal will be repaid in full at maturity. The securities are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.
Strong August Demand
The September sale follows robust interest at the DMO’s August bond auction, where investors submitted bids worth N1.73 trillion against an offer of N1.1 trillion. The office allotted N1.56 trillion across the three instruments offered on 17 August.
That August package comprised N250 billion of the 22.60 per cent FGN January 2035 bond, N100 billion of the 16.2499 per cent FGN April 2037 bond and N750 billion of the 15.45 per cent FGN June 2038 bond. Allocations exceeded the amount initially offered, reflecting continued investor appetite for government securities despite prevailing yield and liquidity conditions.
Separately, the DMO raised N5.86 billion through Federal Government of Nigeria Savings Bonds in August, down from N6.19 billion in July, indicating softer demand in that segment. The August Savings Bond offer carried an annual interest rate of up to 14.963 per cent, while the September Savings Bond issuance offers rates of up to 15.12 per cent.
Market Context
The instruments remain a benchmark for Nigeria’s fixed-income market. They qualify as trustee investments under the Trustee Investment Act and are recognised as government securities for tax-exemption purposes under the Companies Income Tax Act and the Personal Income Tax Act.
The September auction forms part of the DMO’s third-quarter 2026 bond programme and underscores the Federal Government’s continued reliance on domestic borrowing to finance fiscal obligations.
