FG Targets ₦900bn Capital In Jan 2026 Bond Auction

The Federal Government plans to raise ₦900 billion through the reopening of three federal bonds in its January 2026 auction.

Reopened bonds allow the government to tap into existing instruments with known coupon rates, offering certainty for investors and reducing the administrative costs of issuing new securities.

The auction, according to a Debt Management Office (DMO) circular issued on Monday, is scheduled for January 26, 2026, with settlement set for January 28, 2026.

The January auction is part of the FGN’s broader domestic borrowing strategy aimed at financing budgetary obligations while providing investors with stable, long-term investment opportunities and supporting the growth of the domestic debt market.

Offering spans medium- and long-term bonds, providing investors with opportunities across multiple maturities.

The January offer comprises three reopened instruments targeting subscriptions of ₦300 billion from the 18.50 per cent FGN February 2031 bond, ₦400 billion from the 19.00 per cent FGN February 2034 bond, and ₦ 200 billion from the 22.60 per cent FGN January 2035 bond.

Each bond is offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and subsequent increments in multiples of ₦ 1,000.

Coupon rates for the reopened bonds are fixed, with successful bidders paying a price that reflects the yield-to-maturity clearing the auction volume, plus any accrued interest.

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Interest is paid semi-annually, and principal is repaid in full at maturity under a bullet repayment structure.

According to DMO records, total bond allotments in 2025 reached approximately ₦5.12 trillion, indicating strong market participation and demand for government securities.