President Bola Tinubu’s government will raise N600 billion through a new bond auction scheduled for Monday as Nigeria continues to rely on the domestic debt market to finance its fiscal deficit.

Specifically, in an offer circular issued on Tuesday, the Debt Management Office said the offer comprised two re-opened bond instruments valued at N300 billion each. Settlement for successful bidders is expected on Wednesday.

The instruments on offer are a N300 billion, 22.60 per cent January 2035 bond and a N300 billion, 16.2499 per cent April 2037 bond. The bonds are offered at N1,000 per unit, with a minimum subscription of N50.001 million and additional bids in multiples of N1,000.

Because the instruments are re-openings of previously issued bonds, the coupon rates remain fixed. However, investors will pay a price determined by the yield-to-maturity that clears the auction, together with accrued interest.

Interest payments will be made semi-annually, while the principal will be repaid in full at maturity under a bullet repayment structure.

The DMO said the bonds were backed by the “full faith and credit” of the federal government, making them one of the safest fixed-income instruments in the domestic market.

The latest offer comes amid continued reliance on domestic borrowing to fund budget deficits, refinance maturing obligations and support government spending, at a time of elevated financing pressures.

Nigeria’s total public debt stood at N159.28 trillion as of December 2025, according to the DMO, driven by new borrowings, currency depreciation as the government leaned on the local debt market to limit foreign exchange risk and deepen domestic capital market participation.

The May issuance is lower than the N700 billion offered in April, when the DMO conducted an auction of three instruments spanning 2030, 2032 and 2035 maturities.

The instruments will be listed on both the Nigerian Exchange Limited and the FMDQ Securities Exchange, allowing investors to trade them in the secondary market.

Interested investors are expected to participate through authorised Primary Dealer Market Makers, including Access Bank, First Bank of Nigeria, Guaranty Trust Bank, United Bank for Africa, Zenith Bank, Stanbic IBTC Bank, Ecobank Nigeria and Standard Chartered Bank Nigeria.