DMO to Raise N4trn Through FGN Bonds in Nov, Dec

The Debt Management Office (DMO) is targeting N4 trillion from the Federal Government of Nigeria (FGN) bond market in November and December 2026 as the government intensifies efforts to raise funds through domestic debt instruments.

According to the revised FGN Bond issuance calendar for November and December just released by the debt office, the amount will be raised through two bond auctions scheduled for November 16 and December 14, 2026, with N2 trillion expected from each auction.

Under the issuance programme which the DMO said is provisional and subject to change, the government will offer four existing bond instruments for subscription, with the 21.00 per cent FGN March 2028 bond accounting for N1.4 trillion of the total offer. The offer comprises N700 billion at each auction.

The 19.30 per cent FGN April 2029 bond will account for N500 billion, with N250 billion available at each auction, while the 17.945 per cent FGN August 2030 bond will account for N1.5 trillion, representing N750 billion at each auction.

The remaining N600 billion will come from the 19.89 per cent FGN May 2033 bond, with N300 billion offered at each auction.

The issuance will be through the reopening of previously issued bonds, allowing investors to subscribe to existing government securities at prevailing market prices, subject to the terms of the offer.

According to the DMO, the reopening will be conducted through competitive bids, while successful bidders will pay the price corresponding to their bids, provided the bids clear the volume being auctioned, plus any accrued interest on the instruments.

For the November auction which is slated for the 16th, settlement is scheduled for November 18, 2026, two days after the auction date. The bonds will be offered at N1,000 per unit, with a minimum subscription of N50,001,000 and subsequent investments in multiples of N1,000.

Interest payments will be made semi-annually, while repayment of the principal will be made in a bullet payment on the respective maturity dates.

Last month, the DMO had offered N1.75 trillion across three instruments, the February 2034, September 2036 and June 2038 FGN bonds. The auction attracted total subscriptions of approximately N1.75 trillion, comprising N304.08 billion for the February 2034 bond, N925.35 billion for the September 2036 bond and N518.32 billion for the June 2038 bond.

The DMO allotted N78.36 billion, N781.31 billion and N350.72 billion to the market across the three instruments, respectively. The auction results showed marginal rates of 16.99%, 17.29% and 17.19%. The original coupon rates of the October bonds, at 19.00%, 16.79% and 15.45%, were maintained following the re-openings.

Nigeria’s government securities auction allotments declined by 55.86% to N9.501 trillion in October 2026 from N21.527 trillion in September, as demand ratios weakened and monetary authorities left substantial investor bids unallotted, according to the Financial Markets Dealers Association’s (FMDA) October 2026 market report.