The Federal Government has opened subscription for N1 trillion worth of Federal Government of Nigeria (FGN) bonds, with investors required to commit a minimum of N50 million to participate.
The Debt Management Office (DMO), which announced the offer yesterday, said the bonds were being offered at N1,000 per unit, with additional subscriptions to be made in multiples of N1,000.
The offer comprises a new 10-year FGN bond valued at N400 billion, due in September 2036, and a N600 billion reopening of a 15-year FGN bond due in 2038.
The reopened bond carries a coupon rate of 15.45 per cent per annum.
According to the DMO, subscription opened on September 14, 2026, while settlement is scheduled for September 16.
“The FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter,” the DMO said.
The debt office explained that successful bidders for the reopened bond would pay a price based on the yield-to-maturity bid that clears the volume offered, in addition to any accrued interest.
It said interest on the bonds would be paid twice yearly, while the principal would be repaid in full upon maturity.
The DMO assured investors that the securities were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.
It added that the bonds qualified as investments for trustees under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act for applicable tax exemptions.
The securities are also listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, and qualify as liquid assets for banks when calculating liquidity ratios.
FGN bonds are fixed-income securities issued by the DMO on behalf of the Federal Government. They enable investors to lend money to government in return for periodic interest payments and repayment of the principal at maturity.
The proceeds are typically used to finance government expenditure, including infrastructure and other public projects.
