The Debt Management Office (DMO) will today auction N600 billion reopened Federal Government bonds, with elevated yield as high as 22.60 per cent.
The DMO said it is rolling out two previously issued instruments carrying coupon rates of 22.60 per cent and 16.2499 per cent, with settlement due May 20, 2026.
The bonds offer semi-annual interest payments and bullet repayment at maturity, positioning the sale as a strategic reopening across two key tenor buckets — 10-year and 20-year.
According to information made available by the DMO, the N600 billion reopened bond auction facilitated by a consortium of Primary Dealer Market Makers (PDMMs) including Access Bank, Zenith Bank, Guaranty Trust Bank, and a host of others comprises two offers: the N300 billion of the 22.60% FGN Bond due January 2035 (10-Year Re-opening) and the N300 billion of the 16.2499% FGN Bond due April 2037 (20-Year Re-opening).
It said investors will receive interest payments semi-annually, while the principal will be repaid in full at maturity.
The bonds are priced at N1,000 per unit with a minimum subscription of N50.001 million and are backed by the full faith and credit of the Federal Government of Nigeria.
As re-openings, the coupon rates on both instruments are already fixed, meaning successful bidders will pay a price corresponding to the yield-to-maturity that clears the volume being auctioned, plus any accrued interest on the instrument.
This structure allows the DMO to consolidate liquidity in existing bond lines rather than fragment the market with entirely new issuances.
The wide spread between the two instruments — 22.60% on the 10-year and 16.2499% on the 20-year — is notable.
Today’s auction marks the latest in a consistent run of bond re-openings the DMO has conducted since December 2025, underscoring the Federal Government’s heavy reliance on existing bond lines to consolidate domestic debt rather than introduce new instruments.
