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The Federal Government plans to raise ₦1 trillion from investors through its September 2026 FGN bond auction, comprising a new 10-year bond and a reopened 15-year security.
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The Debt Management Office has set a minimum subscription of ₦50.001 million, with additional subscriptions required in multiples of ₦1,000.
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The September offer follows strong demand in August, when investors submitted ₦1.73 trillion in bids against an ₦1.1 trillion offer, and the DMO allotted ₦1.56 trillion.
September 10, (THEWILL) – The Federal Government is targeting ₦1 trillion from investors through its September 2026 FGN bond auction, with the Debt Management Office (DMO) setting a minimum subscription of ₦50.001 million.
According to the DMO’s latest offer circular, the auction will feature ₦400 billion of a new 10-year FGN bond due in September 2036 and ₦600 billion of the 15.45 percent FGN June 2038 bond, which is being reopened.
The auction is scheduled for September 14, 2026, while settlement will take place on September 16.
The bonds will be offered at ₦1,000 per unit, with investors required to subscribe for at least ₦50.001 million and make additional subscriptions in multiples of ₦1,000.
DMO targets ₦1trn from two instruments
For the reopened June 2038 bond, the coupon remains fixed at 15.45 percent. Successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume offered, plus any accrued interest.
Interest on the securities will be paid semi-annually, while the 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 comes as the government continues to rely on domestic debt markets to raise funds, refinance obligations and support its financing requirements.
The ₦50.001 million minimum subscription also places the offer firmly within the institutional and high-net-worth investor segment, although eligible investors can participate through authorised channels subject to the applicable auction requirements.
August demand exceeded offer
The latest offer follows strong demand recorded at the DMO’s August FGN bond auction.
Investors submitted bids worth ₦1.73 trillion against an initial offer of ₦1.1 trillion, representing demand significantly above the amount the government planned to raise.
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The DMO subsequently allotted ₦1.56 trillion across the three instruments offered at the August 17 auction.
The August offer comprised ₦250 billion of the 22.60 percent FGN January 2035 bond, ₦100 billion of the 16.2499 percent FGN April 2037 bond and ₦750 billion of the 15.45 percent FGN June 2038 bond.
The strong subscription reflected continued demand for government securities, even as investors weigh yields across fixed-income instruments and broader liquidity conditions in the financial system.
Meanwhile, demand for the Federal Government’s retail-focused savings bond was comparatively softer in August.
The DMO raised ₦5.86 billion through the FGN Savings Bond during the month, down from ₦6.19 billion in July. The August savings bond offered annual interest of up to 14.963 percent.
The difference between demand for the wholesale FGN bond auction and the savings bond highlights the varying appetite across investor categories and fixed-income products.
For the September auction, the government is again offering a substantial amount of securities at a time when investors are closely monitoring yields, monetary policy and liquidity conditions.
The outcome of the auction will therefore provide another indication of how much investors are willing to commit to longer-dated government debt and the yields they will demand to do so.
With ₦1 trillion on offer, the September exercise will also be closely watched for its implications for domestic borrowing costs and the government’s ability to attract funding from the local capital market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
