FG to Raise ₦900bn in January Bond Auction

The Debt Management Office (DMO) has announced that the Federal Government will seek to raise ₦900 billion through the reopening of three existing FGN bond issues at its January 2026 auction.

In a circular issued on Monday, the DMO said the auction will be held on January 26, 2026, with settlement scheduled for January 28, 2026. The offer covers both medium- and long-term maturities, giving investors multiple tenor options.

What the DMO is offering

According to the circular, the January auction will reopen the following instruments:

The 18.50% FGN February 2031 bond, with a target subscription of ₦300 billion.
The 19.00% FGN February 2034 bond, with a target subscription of ₦400 billion.
The 22.60% FGN January 2035 bond, with a target subscription of ₦200 billion.

Each bond will be offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and additional subscriptions in multiples of ₦1,000.

The DMO explained that while coupon rates on these reopened bonds remain fixed, successful bidders will pay a price determined by the yield-to-maturity that clears the auction volume, plus any accrued interest. Interest will be paid semi-annually, and the principal will be repaid in full at maturity under a bullet repayment structure.

DMO records also show strong appetite for government securities, with total bond allotments in 2025 estimated at about ₦5.12 trillion.

Why the government reopens bonds

Bond reopenings remain a key tool for the Federal Government to finance budget deficits while strengthening the depth and liquidity of Nigeria’s domestic debt market.

By tapping existing bond lines with known terms, the government can reduce issuance costs and provide investors with clarity around coupon payments and maturity profiles. Reopenings also support secondary market liquidity and help build a clearer benchmark yield curve.

Key incentives for investors

The DMO noted that the bonds come with several statutory and regulatory advantages. They qualify as trustee investments under the Trustee Investment Act and are recognised as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), making them eligible for tax-related incentives.

The bonds will be listed on Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, supporting transparency and tradability.

In addition, 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.

The DMO said subscriptions must be submitted through authorised Primary Dealer Market Makers (PDMMs).