The Debt Management Office (DMO) has announced plans to raise N1 trillion from the Federal Government's September 2026 bond auction, setting a minimum subscription of N50.001 million for participating investors.
According to the DMO circular, the offer consists of N400 billion in a new 10-year FGN bond maturing in September 2036 and N600 billion in a reopening of the 15.45% FGN June 2038 bond.
The auction is scheduled for September 14, 2026, with settlement expected on September 16. Bonds will be sold at N1,000 per unit, with additional subscriptions accepted in multiples of N1,000. For the reopened June 2038 instrument, the coupon remains fixed at 15.45%. Successful bidders will pay a price reflecting the yield-to-maturity bid that clears the offered volume, plus accrued interest.
Interest on the securities is payable semi-annually, and principal will be repaid in full at maturity. The bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.
The September auction follows robust demand in August, when investors submitted bids of N1.73 trillion against an offer of N1.1 trillion. The DMO ultimately allotted N1.56 trillion across the three instruments offered at the August 17 auction. That offer comprised N250 billion of the 22.60% FGN January 2035 bond, N100 billion of the 16.2499% FGN April 2037 bond, and N750 billion of the 15.45% FGN June 2038 bond.
Meanwhile, the DMO raised N5.86 billion through the FGN Savings Bond in August 2026, down from N6.19 billion in July, signalling softer retail demand. The August savings bond carried an annual interest rate of up to 14.963%, below the rate offered under the latest September savings bond issuance, which reached 15.12%.
The instruments serve as benchmarks for Nigeria's fixed income market and qualify as trustee investments under the Trustee Investment Act. They are also recognised as government securities for tax-exemption purposes under the Companies Income Tax Act and the Personal Income Tax Act.
The September sale forms part of the DMO's Q3 2026 bond programme, which features reopenings of the same three instruments in July, August and September, underscoring the Federal Government's continued reliance on domestic borrowing to meet fiscal obligations.
