Debt Management Office (DMO) is back in the domestic market today Monday, 18 with a N600 billion bond reopening, led by the government’s most active long-dated security, the 22.60 percent FGN January 2035 bond.
According to the DMO announcement, the offer is split into two tranches of N300 billion each. One is a reopening of the 22.60 percent bond maturing in January 2035. The other is the 16.2499 percent bond due April 2037. Settlement for both is scheduled for May 20, 2026.
Investors will bid on yield-to-maturity, while coupon rates remain fixed. The bonds pay interest twice a year and return principal at maturity.
For the January 2035 paper, this is the fifth time it has been reopened since December 2025. Strong demand in earlier rounds has made it the key pricing reference for long-term government debt.
The structure of today’s sale highlights how investor expectations have shifted. The 10-year bond carries a 22.60 percent coupon, while the 20-year bond offers 16.2499 percent.
In normal markets, longer maturities pay higher yields to offset duration risk. Persistent rate hikes, inflation pressure, and elevated funding costs have flipped that pattern in Nigeria.
Subscription is open to institutional buyers with a minimum of N50.001 million at N1,000 per unit. The bonds carry several regulatory advantages. They qualify as trustee investments, count as government securities for tax purposes, and are exempt for pension funds. They also trade on the Nigerian Exchange and FMDQ OTC, and banks can use them to meet liquidity requirements.
The auction continues the government’s reliance on domestic borrowing to cover fiscal gaps. Recent sales have been sizable: N1.54 trillion in January 2026, N800 billion in February, and N700 billion in April. Each time, the 22.60 percent January 2035 bond anchored demand.
Pension funds, banks, asset managers, and insurers are expected to drive participation today. The clearing rates and subscription levels will give the market a read on liquidity and rate expectations going forward.
