Nigeria Bonds Auction Targets ₦900 Billion

The Federal Government of Nigeria plans to raise 900 billion through the reopening of three federal bonds in its January 2026 auction, according to a circular issued by the Debt Management Office (DMO). This move is part of the government’s domestic borrowing strategy aimed at financing budgetary obligations while providing investors with stable, long-term investment opportunities.

The auction, scheduled for January 26, 2026, with settlement set for January 28, 2026, will offer investors the opportunity to subscribe to three reopened bonds with known coupon rates, reducing administrative costs and providing certainty for investors. The bonds on offer include the 18.50 percent FGN February 2031 bond, the 19.00 percent FGN February 2034 bond, and the 22.60 percent FGN January 2035 bond, with target subscriptions of 300 billion, 400 billion, and 200 billion, respectively.

Each bond is offered at 1,000 per unit, with a minimum subscription of 50,001,000 and subsequent increments in multiples of 1,000. The coupon rates for the reopened bonds are fixed, with successful bidders paying a price that reflects the yield-to-maturity clearing the auction volume, plus any accrued interest. Interest is paid semi-annually, and principal is repaid in full at maturity under a bullet repayment structure.

The DMO’s decision to reopen existing bonds allows the government to tap into existing instruments, reducing the costs associated with issuing new securities. This approach also provides investors with a range of investment options across multiple maturities, supporting the growth of the domestic debt market. In 2025, total bond allotments reached approximately 5.12 trillion, indicating strong market participation and demand for government securities.

The January auction is expected to attract significant interest from investors, given the attractive coupon rates and the government’s commitment to honoring its debt obligations. As the Nigerian government continues to explore ways to finance its budgetary obligations, the reopening of these bonds is seen as a strategic move to support the country’s economic growth and development. With the auction scheduled to take place later this month, investors are advised to take note of the key dates and terms of the offer.