FGN Bond Auction Overshoots N900 Billion, Allots N1.54 Trillion in January 2026
The Federal Government of Nigeria (FGN) exceeded expectations at its January 2026 bond auction, allotting a total of N1.54 trillion, well above the N900 billion originally offered. The Debt Management Office (DMO) reported the figures following the auction held on January 26, 2026, reflecting strong investor confidence in government securities despite the high-interest-rate environment.
The auction featured the re-opening of three existing FGN bonds, with all maturities oversubscribed. The data shows that longer-dated bonds attracted particularly robust demand, highlighting investors’ willingness to lock in attractive yields even amidst broader economic uncertainty. Settlement for all successful bids is scheduled for January 28, 2026.
Among the bonds on offer, the 18.50% FGN February 2031 bond attracted bids totaling N514.45 billion against an offer of N300 billion, leading to an allotment of N398.19 billion. The 19.00% FGN February 2034 bond saw bids surge to about N1.01 trillion versus a N400 billion offer, resulting in an allotment of N576.33 billion. The 22.60% FGN January 2035 bond recorded subscriptions of N731.40 billion for a N200 billion offer, with total allotment reaching N570.16 billion.
Marginal rates for the bonds settled between 17.50% and 17.62%, notably below their original coupon rates, reflecting competitive bidding. The DMO confirmed that coupon rates of 18.50%, 19.00%, and 22.60% will remain unchanged over the life of the instruments, ensuring steady returns for investors who participated in the auction.
This strong showing continues a trend of oversubscription in FGN bond auctions, which remain a cornerstone of Nigeria’s domestic borrowing strategy. Between January and December 2025, the government allotted approximately N5.12 trillion through bond sales, demonstrating persistent investor confidence in the country’s fixed-income market.
source: nairametrics