ABUJA — The Debt Management Office (DMO) has officially opened subscriptions for the September 2026 Federal Government of Nigeria (FGN) bond offer, seeking to raise ₦1 trillion across multi-tenor reopening tranches to finance critical national infrastructure deficits and fund the 2026 federal budget deficit.
In a departure from traditional retail-friendly debt issuances, the debt authority introduced a ₦50 million minimum subscription requirement per applicant, with subsequent increments in multiples of ₦1,000. Market analysts interpret the high entry threshold as an intentional liquidity management strategy designed to absorb excess institutional liquidity—particularly from Pension Fund Administrators (PFAs), insurance firms, and money deposit banks—while leaving smaller retail liquidity dedicated to the ongoing ₦2.15 trillion Dangote Refinery IPO window.
The multi-tranche sovereign debt offer—backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria—opened on Monday, September 14, 2026, and will close for applications on Friday, September 18, 2026, with settlement scheduled for Wednesday, September 23, 2026.
Key Structuring & Tranche Terms
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Total Offer Size: ₦1 trillion total capital target across three reopened benchmark instruments maturing between 2029 and 2038.
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Subscription Thresholds: Minimum entry set at ₦50,000,000, restricting direct participation primarily to corporate treasuries, institutional investors, and high-net-worth individuals (HNIs).
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Multi-Tenor Offer Breakdown:
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5-Year Reopening (APRIL 2029): Coupon rate set at 19.30% per annum.
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7-Year Reopening (FEBRUARY 2031): Coupon rate set at 19.85% per annum.
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12-Year Reopening (MAY 2038): Coupon rate set at 20.75% per annum.
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Tax Status & Yield Payment: Interest payouts are made semi-annually directly to investor account details, with income tax exemptions applied pursuant to statutory tax relief provisions on sovereign debt instruments.
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Secondary Market Liquidity: The bonds will be listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, ensuring post-allotment secondary market liquidity for trading and portfolio restructuring.
