How to Join Today’s FG Bond Auction – What Investors Need to Know

Nigeria’s ₦800 billion Federal Government bond auction is happening today, February 23. The Debt Management Office (DMO) sells FGN bonds at the primary auction through approved Primary Dealer Market Makers (PDMMs). 

These are selected banks and dealers that submit bids and take allocations on behalf of clients and the wider market.

Buy Through a PDMM (Bank/Dealer)

SMEs and many corporate treasuries participate by going through a PDMM. If you already have a relationship with one of these institutions, you will notify your bank or dealer that you want to buy at the auction, confirm the bond tenors being offered, agree on the amount you want to invest, and submit your bid instruction before the dealer’s internal cut-off time. 

Dealers often set their own deadlines earlier than the official market deadline, so timing matters if you want to join the same-day auction.

Prepare Cash Before Settlement

Participation is not just about placing a bid, it’s also about settlement readiness. Most PDMMs will require your funds to be available before they submit your bid. 

Even though the settlement is scheduled for February 25, some institutions block the cash immediately or insist on cleared funds to avoid failed settlement. 

If you want to participate today, your account needs to be funded and ready to carry through settlement day.

If You Miss the Auction: The Secondary Market Option

For many retail investors, the most practical option is buying after the auction. Once the auction clears, the same FGN bond lines typically trade in the secondary market. 

This route can be simpler because you’re not dealing with auction timing or bid pricing decisions. 

You can buy through a stockbroker, bank, or asset manager with market access, and the price you pay will reflect post-auction yield levels.

The “Hands-Off” Option: Buy Through a Fund

Another route is indirect exposure through professionally managed funds. Many money market funds and bond funds hold FGN securities.

This option works for investors who want exposure to government bonds without handling auction bid instructions, pricing decisions, and settlement logistics. The difference is that you’re buying units in a portfolio rather than holding a specific bond line directly.