Debt Management Office (DMO) has offered to auction ₦600 billion in Federal Government of Nigeria bonds on May 18, 2026, as it has continued to finance fiscal obligations and extend the maturity of domestic debt.

According to an offer circular released on Tuesday, the auction comprises two re-opened instruments of ₦300 billion each. 

The first was the 22.60% FGN January 2035 bond, a 10-year paper. The second was the 16.2499% FGN April 2037 bond, a 20-year paper.

Both are re-openings, meaning the coupon rates are fixed and investors will bid on yield-to-maturity. 

According to rates, interest will be paid semi-annually, with principal repaid in a single bullet payment at maturity. 

Also, units are priced at ₦1,000, with a minimum subscription of ₦50,001,000 and additional investments in multiples of ₦1,000. 

In addition, settlement for successful bids is scheduled for May 20, 2026.

The May offer is ₦100 billion smaller than April’s ₦700 billion auction, which included 5-, 7-, and 10-year bonds, according to the figures. 

DMO said the reduction reflects a more measured borrowing stance, aided by improved liquidity conditions from rising oil prices and ongoing efforts to manage debt service costs.

The bonds carry several incentives aimed at institutional investors. 

They qualify as trustee investment securities under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemptions for pension funds and other qualifying institutions. 

The securities also count as liquid assets for banks’ liquidity ratio calculations and are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange for secondary market trading.

Applications must be submitted through approved Primary Dealer Market Makers, including Access Bank, First Bank, Stanbic IBTC, GTBank, UBA, Zenith Bank, Ecobank, and Standard Chartered Bank Nigeria.

By re-opening the 2035 and 2037 maturities, the government is pushing to lengthen the average tenor of its domestic debt and lock in long-term funding at fixed rates. 

The 22.60% coupon on the 2035 bond underscores the elevated yield environment in the local fixed-income market.

The auction will take place amid sustained demand for naira-denominated government securities, as local investors seek higher returns and protection from currency volatility.