FGN Targets N900 Billion in January 2026 Bond Auction

The Federal Government, through the Debt Management Office (DMO), plans to raise N900 billion from investors through the reopening of three Federal Government bonds at its January 2026 bond auction.

According to a circular issued by the DMO, the auction is scheduled for January 26, 2026, with settlement expected on January 28, 2026. The offer spans medium- and long-term instruments, giving investors access to a range of maturities.

The reopening includes N300 billion from the 18.50 per cent FGN February 2031 bond, N400 billion from the 19.00 per cent FGN February 2034 bond, and N200 billion from the 22.60 per cent FGN January 2035 bond.

Each bond is priced at N1,000 per unit, with a minimum subscription of N50.001 million, and additional purchases in multiples of N1,000. Coupon rates are fixed, while successful bidders will pay a price reflecting the yield-to-maturity that clears the auction, plus any accrued interest.

Interest payments are made semi-annually, with principal repayment at maturity under a bullet structure. Records show that total bond allotments in 2025 reached approximately N5.12 trillion, reflecting strong demand for government securities.

The Federal Government continues to use bond reopenings to finance budget deficits while deepening the domestic debt market. These instruments offer long-term investment opportunities for pension funds, insurance firms, and individual investors seeking predictable returns.

The bonds qualify as approved investments under the Trustee Investment Act and are recognised as government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemptions. They will also be listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, ensuring liquidity and transparency.

Applications for the auction are to be submitted through authorised Primary Dealer Market Makers (PDMMs).