Nigeria to auction 1,000 billion naira in bonds

On September 14, 2026, Nigeria will conduct an auction of 1,000 billion naira in federal bonds, featuring a new ten-year bond and the reopening of a bond maturing in 2038.

The Debt Management Office (DMO) is organizing this operation on the domestic market to raise up to 1,000 billion naira. The offering includes 400 billion naira of a new FGN Bond maturing in September 2036 and 600 billion naira of the FGN Bond with a 15.45% coupon maturing in June 2038, which is already in circulation.

According to the schedule published by the Nigerian Debt Management Agency, the settlement of the securities is set for Wednesday, September 16. The bonds are offered in units of 1,000 naira, but the minimum subscription for the primary auction is set at 50,001 million naira, with subsequent multiples of 1,000 naira.

For the reopened 2038 bond, the coupon remains fixed at 15.45%. The price paid by successful investors will depend on the yield to maturity resulting from the auction, which may also include accrued interest. Interest is paid biannually, and the principal is repaid at maturity.

This new issuance follows an August auction characterized by strong demand. The DMO had offered 1,100 billion naira in securities, received approximately 1,730 billion naira in bids, and ultimately allocated 1,560 billion naira across various maturities.

The use of the domestic bond market remains one of the primary financing instruments for the federal government. The DMO emphasizes that FGN Bonds are backed by the federal government and serve as benchmark securities in the Nigerian fixed-income market.