DMO reopens three high-yield bonds as government deepens domestic borrowing strategy
The Federal Government has announced plans to raise ₦900 billion through the reopening of three Federal Government of Nigeria (FGN) bonds at its January 2026 bond auction, according to a circular issued by the Debt Management Office (DMO).
The auction is scheduled to hold on January 26, 2026, with settlement expected two days later on January 28, 2026.
The move forms part of the government’s broader domestic borrowing programme, aimed at financing budgetary commitments, strengthening the local debt market, and providing investors with stable long-term investment options.
By reopening existing bonds rather than issuing new ones, the government is leveraging instruments with established coupon rates, a strategy that offers greater certainty to investors while also reducing the administrative costs associated with fresh issuances.
Details of Bonds on Offer
The January auction will feature three reopened bonds spanning medium- and long-term maturities, with a combined subscription target of ₦900 billion:
- ₦300 billion from the 18.50% FGN February 2031 bond
- ₦400 billion from the 19.00% FGN February 2034 bond
- ₦200 billion from the 22.60% FGN January 2035 bond
Each bond will be offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000, and additional purchases required in multiples of ₦1,000.
Coupon rates on the bonds are fixed. However, successful bidders will pay a price determined by the yield-to-maturity that clears the auction, in addition to any accrued interest.
Interest payments will be made semi-annually, while the principal will be repaid in full at maturity under a bullet repayment structure.
Strong Market Participation
DMO data show sustained investor appetite for government securities, with total bond allotments in 2025 reaching approximately ₦5.12 trillion, underscoring strong participation in the domestic debt market.
The January 2026 bond auction is expected to further reinforce market depth while offering investors attractive yields across multiple maturities.
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