The Debt Management Office has officially launched an offering of three Federal Government bonds totaling N1.1 trillion. Investors can participate at a rate of N1,000 per unit. The auction features three specific re-opened bonds: a 10-year January 2035 bond worth N250 billion at a 22.60 percent annual rate, a 20-year April 2037 bond valued at N100 billion at 16.2499 percent, and a 15-year June 2038 bond worth N750 billion at 15.45 percent interest.
Scheduled for August 17, the auction will settle on August 19. While the unit price is N1,000, participants must commit to a minimum subscription of N50 million. Winners will pay the yield-to-maturity price along with any applicable accrued interest. These bonds provide semi-annual interest payments, with the principal returned at maturity.
These debt instruments are supported by the credit and assets of Nigeria. They are recognized under the Trustee Investment Act and offer tax exemptions under current income tax regulations for pension funds and other qualified investors. Furthermore, the bonds are listed on the Nigerian Exchange Ltd. and the FMDQ OTC Securities Exchange, serving as liquid assets for banking liquidity ratios. As debt instruments, these securities are aimed at major entities such as banks, insurance firms, and pension managers who seek secure, government-backed investments.
