Nigeria’s Debt Management Office (DMO) has recorded overwhelming investor interest in its July 2026 Federal Government of Nigeria (FGN) bond auction, attracting bids worth N1.74 trillion. Despite the strong demand, the agency allotted N929.32 billion across three bond offerings, underscoring continued confidence in government-backed securities and the growing appetite for fixed-income investments among investors.
According to a circular released by the DMO on Monday, the auction featured the re-opening of the 22.60% FGN January 2035 bond, the 16.2499% FGN April 2037 bond, and the 15.45% FGN June 2038 bond. While the agency initially offered N1.2 trillion worth of bonds, it ultimately allotted about 77.4% of that amount, with settlement scheduled for July 22, 2026.
The auction attracted a total of 556 bids valued at N1.74 trillion, out of which 308 bids were successful. The 16.2499% FGN April 2037 bond emerged as the most sought-after instrument, drawing subscriptions worth N665.19 billion and securing allotments of N381.46 billion at a marginal rate of 18.35%. The January 2035 bond received N555.47 billion in subscriptions with N245.73 billion allotted, while the June 2038 bond attracted N518 billion and recorded allotments of N302.13 billion, including a N50 billion non-competitive allotment.
Although investors accepted marginal rates ranging from 18.34% to 18.40%, the DMO confirmed that the original coupon rates for all three bonds would remain unchanged. The strong response means total subscriptions exceeded the amount offered by more than N540 billion, highlighting sustained investor trust in Federal Government securities even as market participants closely monitor future interest rate movements.
The latest auction follows a similar exercise in June 2026, when the DMO reopened two FGN bonds to raise N1.2 trillion. As one of Nigeria’s most trusted investment instruments, FGN bonds continue to attract institutional and retail investors due to their government backing, fixed coupon payments, and tax-related benefits. The strong turnout at the July auction signals that investors remain eager to lock in attractive long-term yields while positioning for potential shifts in the economic and interest-rate environment.
source: nairametrics
