The Debt Management Office (DMO) has announced the re-opening of Federal Government of Nigeria (FGN) bonds valued at N200 billion for subscription in September.
According to the DMO, the re-opening covers two instruments: an August 2030 FGN bond valued at N100 billion with a coupon rate of 17.945 percent, and a June 2032 FGN bond also valued at N100 billion with a coupon rate of 17.95 percent. The two bonds represent five-year and seven-year tenors respectively.
The auction is scheduled for September 29, with settlement on October 2. Bonds are offered at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
Successful bidders will pay a price corresponding to the yield-to-maturity that clears the volume on offer, in addition to accrued interest.
Interest on the instruments will be paid semi-annually, while principal will be repaid in full at maturity. The DMO reaffirmed that all FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the nation.
The agency noted that the securities qualify as trustee investments under the Trustee Investment Act, and enjoy recognition under the Company Income Tax Act and the Personal Income Tax Act for tax exemption purposes.
They are also approved for pension fund investments and qualify as liquid assets in banks’ liquidity ratio calculations.
In addition, the bonds are listed on the Nigerian Exchange Limited (NGX), providing transparency and liquidity for investors through secondary market trading.
The re-opening underscores the Federal Government’s continued reliance on the domestic debt market to raise funds for fiscal operations while offering institutional investors attractive fixed-income opportunities.