The Debt Management Office (DMO) has issued a fresh N600 billion Federal Government of Nigeria (FGN) bond auction slated for May 18, with settlement scheduled for May 20. The offering comprises two re‑opened bonds, each valued at N300 billion: a 22.60 % coupon FGN January 2035 10‑year bond and a 16.2499 % coupon FGN April 2037 20‑year bond. Units are priced at N1,000, with a minimum subscription of N50,001,000 and additional purchases permitted in N1,000 increments.
Because the securities are re‑openings of previously issued instruments, their coupon rates are already fixed. Interest will be paid semi‑annually, while principal repayment will occur as a bullet payment at maturity. Successful bidders will be required to pay the yield‑to‑maturity that clears the auction, together with accrued interest. The bonds are backed by the full faith and credit of the Federal Government of Nigeria.
The May issuance represents a modest reduction in size compared with the preceding month, when the DMO offered N700 billion across three instruments – the same 10‑year 2035 bond (N300 billion), a 7‑year 2032 bond (N100 billion) and a 5‑year 2030 bond (N300 billion). The current auction therefore reflects a strategic recalibration of supply as the government seeks to meet fiscal obligations, deepen the domestic capital market and sustain demand from institutional investors for fixed‑income assets.
This auction forms part of the broader financing plan that the Nigerian government has pursued to support its budgetary commitments and infrastructure agenda. By tapping the domestic bond market, authorities aim to reduce reliance on external borrowing, diversify funding sources and provide investors with longer‑dated, higher‑yielding instruments. The re‑opening mechanism also signals confidence in the existing debt profile, allowing the DMO to raise additional capital without altering the terms that were previously agreed with bondholders.
Market participants will be watching the auction results for clues on investor appetite and the yield curve trajectory in Nigeria’s sovereign market. A successful subscription at competitive yields could reinforce confidence in the country’s debt management strategy and encourage further participation from both local and regional institutional investors.
The DMO’s next steps will involve finalising settlement, monitoring secondary‑market activity and preparing subsequent offerings in line with the government’s fiscal calendar. As the auction proceeds, the outcome will provide an early indicator of the effectiveness of current policy measures aimed at stabilising the debt market and supporting Nigeria’s broader economic objectives.
