Debt Management Office (DMO) has announced plans to raise N800 billion through the issuance of three Federal Government bonds, each priced at N1,000 per unit, as part of efforts to deepen the domestic debt market and finance national development projects.
Gatekeepers News reports that in a statement shared on its official social media platforms on Tuesday, the agency disclosed that the bond offer would be conducted through a public auction scheduled for February 23, 2026, with settlement expected to take place on February 25, 2026. The offer is open to institutional and individual investors through authorised primary dealer banks across the country.
According to the DMO, the bond issuance comprises three separate instruments with varying tenures and interest rates. The largest portion is a N400 billion bond carrying an annual interest rate of 17.95 percent, set to mature in June 2032, marking a seven-year re-opening of an existing bond.
Another N300 billion bond is being offered at a yield of 19.89 percent, with a maturity date of May 2034, representing a 10-year re-opening. The third tranche is a N100 billion bond priced at a 19 percent annual interest rate, also due in February 2034, making it another 10-year re-opening.
“Units of sale is N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter,” the DMO said.
The agency explained that for re-opened bonds, where the coupon rates have already been determined, successful bidders would pay a price based on the yield-to-maturity rate that clears the total volume on offer, in addition to any accrued interest.
It added that interest payments would be made on a semi-annual basis, while the principal amount would be repaid in full at maturity through bullet repayment.
The DMO further noted that the bonds qualify as approved investment instruments under the Trustee Investment Act and also meet the requirements of government securities under the Company Income Tax Act and the Personal Income Tax Act, making them tax-exempt for pension funds and other eligible investors.
The bonds are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, enhancing their tradability and market liquidity. The agency also stated that Federal Government bonds qualify as liquid assets for banks when computing their liquidity ratios, further strengthening their appeal to financial institutions.
On security, the DMO assured investors that the bonds are fully backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the nation’s general assets, providing strong assurance of safety and reliability.
The debt office also disclosed that it reserves the right to allot the bonds at its discretion, advising interested investors to approach authorised banks and primary dealers for subscription and further guidance.
The bond auction forms part of the federal government’s broader strategy to manage public debt efficiently, support budget financing, deepen the local capital market, and provide investors with stable and secure investment opportunities.
