The Federal Government plans to raise N600 billion through a bond auction on Monday as it continues to rely on the domestic debt market to finance its 2026 budget deficit.

In a circular released on Tuesday, the Debt Management Office said the auction will feature two re-opened Federal Government bonds valued at N300 billion each.

The instruments are the 22.60 per cent FGN January 2035 bond and the 16.2499 per cent FGN April 2037 bond. Both are offered at N1,000 per unit, with a minimum subscription of N50.001 million.

The DMO said the final price for each bond will be determined by the yield that clears the auction, while investors will also pay accrued interest.

Interest on the bonds will be paid every six months, while the principal will be repaid in full at maturity.

The agency noted that the bonds are backed by the full faith and credit of the Federal Government, making them one of the safest fixed-income investments in the local market.

The bonds will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, allowing investors to buy and sell them in the secondary market.

Nigeria’s total public debt stood at N159.28 trillion as of December 2025, according to the DMO, underscoring the government’s continued dependence on borrowing to fund its fiscal obligations.