The Debt Administration Workplace (DMO) has introduced that the Federal Authorities will search to boost N900 billion via the reopening of three federal bonds in its January 2026 public sale.
The public sale, based on a DMO round issued on Monday, is scheduled for January 26, 2026, with settlement set for January 28, 2026.
The providing spans medium- and long-term bonds, offering buyers with alternatives throughout a number of maturities.
What DMO is saying
The January provide includes three reopened devices focusing on subscriptions of N300 billion from the 18.50 per cent FGN February 2031 bond, N400 billion from the 19.00 per cent FGN February 2034 bond, and N200 billion from the 22.60 per cent FGN January 2035 bond.
- Every bond is obtainable at N1,000 per unit, with a minimal subscription of N50,001,000 and subsequent increments in multiples of N1,000.
- Coupon charges for the reopened bonds are fastened, with profitable bidders paying a value that displays the yield-to-maturity clearing the public sale quantity, plus any accrued curiosity.
- Curiosity is paid semi-annually, and principal is repaid in full at maturity underneath a bullet reimbursement construction.
In accordance with DMO data, whole bond allotments in 2025 reached roughly N5.12 trillion, indicating robust market participation and demand for presidency securities.
What you must know
The FGN has routinely used bond reopenings as a instrument to finance funds deficits whereas deepening Nigeria’s home debt market.
These devices present long-term funding choices for pension funds, insurance coverage corporations, and particular person buyers looking for predictable yields.
Reopened bonds permit the federal government to faucet into present devices with identified coupon charges, providing certainty for buyers and decreasing the executive prices of issuing new securities.
Moreover, such choices strengthen market liquidity and contribute to the event of a benchmark yield curve for the home market.
Buyers within the January public sale will profit from a number of statutory and regulatory incentives.
- The bonds qualify as investments for trustees underneath the Trustee Funding Act.
- They’re recognised as authorities securities underneath the Firm Earnings Tax Act (CITA) and Private Earnings Tax Act (PITA), making them eligible for tax exemptions.
- The bonds shall be listed on the Nigerian Trade Restricted (NGX) and the FMDQ OTC Securities Trade, making certain tradability and transparency.
- FGN bonds rely as liquid property for banks when calculating liquidity ratios and are backed by the total religion and credit score of the Federal Authorities.
Purposes should be submitted via any of the authorised Major Supplier Market Makers (PDMMs), based on DMO round.
The January public sale is a part of the FGN’s broader home borrowing technique aimed toward financing budgetary obligations whereas offering buyers with steady, long-term funding alternatives and supporting the expansion of the home debt market.
