The Federal Government of Nigeria (FGN) has announced plans to raise ₦900 billion from the domestic debt market through its January Federal Government of Nigeria (FGN) bond auction, as part of efforts to finance the 2026 budget and refinance existing obligations.
According to the Debt Management Office (DMO), the offer will be conducted through the reopening of three existing FGN bonds with different maturities and coupon rates. The bonds include a 7-year FGN bond maturing in February 2031, a 10-year bond due in February 2034, and another 10-year bond maturing in January 2035. Together, the instruments are expected to attract strong interest from institutional investors, including pension funds and asset managers.
The auction is scheduled to hold in January, with settlement expected shortly after. The bonds will be issued at ₦1,000 per unit, with a minimum subscription of ₦50.001 million. Interest payments will be made semi-annually, while the principal will be repaid in full at maturity.
Market analysts note that the ₦900 billion target represents a significant increase compared to similar offerings in previous years, highlighting the government’s growing reliance on domestic borrowing amid fiscal pressures, rising debt servicing costs, and limited access to cheaper external financing.
FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and are eligible investments for pension funds and other regulated institutional investors, making them one of the most secure instruments in the Nigerian financial market.
The outcome of the January bond auction is expected to provide insights into investor confidence and appetite in Nigeria’s fixed-income market amid prevailing economic conditions. Visit www.jocomms.com for more news.