Nigeria’s Federal Government will return to the domestic fixed-income market in January 2026, seeking to raise N900 billion through a reopening of existing sovereign bonds as part of its ongoing funding and yield-curve management strategy.
The Debt Management Office (DMO) confirmed that the auction will be held on January 26, with settlement scheduled for January 28. The offering spans medium- and long-dated Federal Government of Nigeria (FGN) bonds, providing investors with duration options across key benchmark maturities.
The issuance will be drawn from three outstanding instruments: the 18.50 per cent FGN bond maturing in February 2031, the 19.00 per cent FGN bond due in February 2034, and the 22.60 per cent FGN bond maturing in January 2035. The DMO is targeting subscriptions of N300 billion, N400 billion, and N200 billion respectively.
Bonds will be issued in units of N1,000, with a minimum subscription threshold of N50.001 million. While coupon rates are fixed, successful bids will be allotted at yields determined by market clearing levels, inclusive of accrued interest. Coupons are paid semi-annually, with principal repayment structured on a bullet basis at maturity.
The planned auction follows strong sovereign issuance activity in 2025, when total FGN bond allotments exceeded N5 trillion, reinforcing Nigeria’s position as one of Africa’s most liquid local-currency debt markets.
Bond reopenings remain central to Nigeria’s domestic borrowing framework, allowing the government to efficiently raise funds, deepen secondary market liquidity, and strengthen benchmark pricing along the yield curve. For investors, the instruments offer predictable cash flows, sovereign credit backing, and regulatory clarity.
Participation in the auction will be conducted through authorised Primary Dealer Market Makers (PDMMs), including:
Access Bank Plc; Citi Bank Nigeria Ltd.; Coronation Merchant Bank Ltd.; Ecobank Nigeria Ltd.; FBNQuest Merchant Bank Ltd.; First Bank of Nigeria Ltd.; First City Monument Bank Ltd.; FSDH Merchant Bank Ltd.; Rand Merchant Bank Nigeria Ltd.; Guaranty Trust Bank Ltd.; Stanbic IBTC Bank Ltd.; Standard Chartered Bank Nigeria Ltd.; United Bank For Africa Plc; and Zenith Bank Plc.
FGN bonds benefit from multiple statutory incentives. They qualify under the Trustee Investment Act, are exempt from corporate and personal income taxes, and are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. For deposit money banks, the bonds also count as liquid assets and carry the full faith and credit of the Federal Government.
The January auction underscores Nigeria’s reliance on domestic capital markets to support budgetary needs while offering local and offshore investors access to high-yielding, naira-denominated sovereign assets.
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