By Sandra Kenneth
The Debt Management Office (DMO) has officially opened subscriptions for two Federal Government of Nigeria (FGN) bonds valued at ₦1 trillion, aimed at financing national development and infrastructure projects.
According to a statement issued by the agency, the issuance comprises two tranches: a fresh 10-year FGN bond worth ₦400 billion maturing in September 2036, and a ₦600 billion reopening of an existing 15-year bond maturing in 2038, which carries a 15.45% annual coupon rate.
The offer opened on September 14, with settlement scheduled for September 16.
Each unit is offered at ₦1,000, subject to a minimum subscription threshold of ₦50 million and subsequent multiples of ₦1,000.
For the reopened 15-year bond, successful bidders will pay a price reflecting the clearing yield-to-maturity bid, along with any accrued interest.
Key Features & Tax Benefits
Repayment Terms: Interest payments will be made semi-annually, with a full principal (bullet) repayment due upon maturity.
Backing & Security: The instruments are fully backed by the full faith and credit of the Federal Government and charged against Nigeria’s general assets.
Tax Exemptions: Under the Company Income Tax Act and Personal Income Tax Act, the securities qualify for relevant tax exemptions and are approved investments under the Trustee Investment Act.
Liquidity: The bonds are listed on both the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, qualifying as liquid assets for commercial bank liquidity ratio compliance.
FGN bonds serve as primary fixed-income debt instruments used by the government to raise capital for critical infrastructure and public projects while providing institutional and high-net-worth investors with risk-free assets.
