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The short answer
FGN bonds are listed on the Nigerian Exchange and FMDQ, so you can sell before maturity through the stockbroker or dealer who holds them for you, at the market price on the day plus accrued interest. The price moves opposite to yields: if yields have risen since you bought, you will usually receive less than face value, and if they have fallen, more.
An FGN bond pays coupons until maturity and then repays face value. If you need the money earlier, perhaps for a house deposit abroad or an emergency, you do not have to wait. But selling early swaps a known outcome for a market price, and that price can be well below what you paid.
Where FGN bonds trade
The Debt Management Office's August 2026 offer, as reported by NAN, says FGN bonds are listed on the Nigerian Exchange and FMDQ, are priced at the clearing yield plus any accrued interest, pay coupons semi-annually and repay principal in a single bullet at maturity. The minimum subscription at auction was ₦50 million and multiples of ₦1,000 after that. FGN Savings Bonds, the smaller retail product, are also tradable on the secondary market, according to the DMO's subscription portal FAQ.
In practice, the secondary market is a dealer market: banks and dealers quote prices, and your stockbroker or the bank or dealer that bought the bond for you places the sale. FMDQ and NGX are the platforms behind the listing.
How the price is set
A bond's price is the value today of its remaining coupons and principal, discounted at the yield the market now demands. When yields rise, that value falls; when yields fall, it rises. Yields on FGN bonds do move: at the 19 October 2026 auction, Nairametrics reported a stop rate of 17.19% on the June 2038 bond, which carries a 15.45% coupon, against 16.85% in September.
Worked example
Example only, invented bond. You hold ₦50,000,000 face value of a bond with a 16% coupon paid semi-annually and exactly five years left, bought at par (100). Price per 100 of face value if the market yield is:
| Market yield when you sell | Price per 100 | Value of ₦50,000,000 face (excluding accrued interest) |
|---|---|---|
| 14% | 107.02 | ₦53,510,000 |
| 16% | 100.00 | ₦50,000,000 |
| 18% | 93.58 | ₦46,790,000 |
At 18%, each half-year coupon of 8 is discounted at 9%: 8 x 6.4177 + 100 x 0.4224 = 93.58. Selling then would mean a loss of ₦3,210,000 on the principal, offset by the coupons you already received. The buyer also pays you accrued interest since the last coupon date.
Steps to sell from abroad
- Confirm where the bond is held. Bonds bought at auction or through a dealer are usually in a CSCS account or a custodian account in your name. The DMO portal FAQ says an existing CSCS account is needed for savings bond subscriptions.
- Ask your broker or dealer for a bid. Request a firm price, the yield it implies, the accrued interest and all charges, in writing.
- Compare. If you can, ask a second dealer. Spreads can be wider on less traded bonds and smaller amounts.
- Instruct the sale in writing and confirm the settlement date and the bank account for proceeds.
- Keep the contract note. It records price, accrued interest and fees, which you may need for tax in your country of residence.
Tax points
Templars and KPMG both reported in late 2025 that interest on FGN bonds remains exempt from the withholding tax that now applies to short-term securities. The NAN report on the August 2026 offer says the bonds qualify as government securities under the tax laws. How a gain or loss on sale is treated in Nigeria and in your country of residence is a separate question; take advice where you live. This is information, not tax advice.
Before you sell
- Check when the next coupon falls; selling just before means the coupon is reflected in accrued interest rather than paid to you.
- Compare the loss from selling with the cost of borrowing against other assets.
- If the bond is close to maturity, the price is usually near par and price risk is small.
Selling compared with holding to maturity
Holding to maturity removes price risk: if the federal government pays as promised, you receive every coupon and the full face value, whatever yields do in between. Selling early gives you cash now at a price you cannot control. The longer the bond has left, the more its price moves for each change in yield, which is why a bond maturing in 2038 can move far more than one maturing next year. If you think you may need the money before maturity, consider shorter bonds or Treasury bills when you buy, rather than relying on the secondary market later. And if you must sell into a market where yields have jumped, selling part of the holding and keeping the rest spreads the timing risk.
For current auction yields see FGN bond yields today; for buying, the auction minimum for investors abroad; for coupons, coupon payments to diaspora holders. The Nigeria library explains how FGN bonds work.
Where Pryme fits
Sale proceeds and coupons are paid in naira. A Pryme multicurrency account can receive naira, and Swap shows the rate and the fee before you approve any conversion.
Questions people ask
Can I sell my FGN bond before maturity?
Yes. FGN bonds are listed on NGX and FMDQ and can be sold through your broker or dealer at the market price plus accrued interest.
Will I lose money selling an FGN bond early?
You may. If yields have risen since you bought, the price will usually be below what you paid. If yields have fallen, you may sell above it.
Who do I contact to sell an FGN bond from abroad?
The stockbroker, bank or dealer that bought or holds the bond for you. Ask for a written bid, the implied yield, accrued interest and all fees.
Is interest on FGN bonds taxed?
Templars and KPMG reported that FGN bond interest remains exempt from the withholding tax applied to short-term securities. Your home country may tax it; check locally.
Sources
- FG re-opens 3 bonds valued at N1.1trn for subscription for August (NAN) · accessed Oct 2026
- DMO subscription portal FAQ · accessed Oct 2026
- DMO allots N2.2 trillion at Oct 19 FGN bond auction (Nairametrics) · accessed Oct 2026
- Templars Transcripts: Tax, October 2025 · accessed Oct 2026
- KPMG TaxNewsFlash: Nigeria guidance on WHT on short-term securities · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.