ABUJA: The Debt Management Office has unveiled plans to auction Federal Government bonds worth N800 billion, offering investors the opportunity to subscribe at N1,000 per unit.
In a statement issued Tuesday, the agency said the offer comprises three bond categories with varying interest rates and maturity dates.
The largest tranche is a N400 billion bond carrying a 17.95% annual coupon, scheduled to mature in June 2032. This represents a seven-year re-opening of an existing bond.
Another offer includes a N300 billion bond yielding 19.89% and maturing in May 2034, alongside a N100 billion bond with a 19% interest rate due in February 2034. Both are 10-year re-openings of previously issued securities.
According to the DMO, the auction is scheduled for February 23, while settlement will take place on February 25, 2026. The bonds are priced at N1,000 per unit, with a minimum subscription of N50,001,000 and additional purchases required in multiples of N1,000.
The agency explained that successful bidders for re-opened bonds will pay a price reflecting the yield-to-maturity that clears the auction volume, plus any accrued interest.
Interest payments will be made semi-annually, while the principal will be repaid in full at maturity.
The bonds qualify as approved trustee investments under the Trustee Investment Act and are recognised as government securities under relevant tax laws.
This status makes them eligible for certain tax exemptions, particularly for pension funds and similar institutional investors.
They are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and they also count as liquid assets for banks when calculating liquidity ratios.
The DMO emphasised that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and are secured against the nation’s general assets.
The office added that it retains discretion over bond allotments and advised interested investors to participate through authorised financial institutions.
