Nigeria’s Federal Government has raised N748.64bn through its September 2026 FGN bond auction, as investors showed strong appetite for the government’s longer-term debt securities. The auction, conducted by the Debt Management Office (DMO), attracted total bids of N1.49tn across the 10-year and 15-year bonds, significantly exceeding the N1tn offered.
The DMO allotted N288.83bn from the N400bn offered on the 10-year FGN bond, with the instrument clearing at a marginal rate of 16.79 per cent. Investors submitted bids worth N546.90bn for the 10-year bond, representing demand that was 36.7 per cent above the amount put up for sale. The strong interest came alongside a moderation in borrowing rates compared with some recent government debt auctions.
Interest was even stronger for the 15-year FGN bond, which was offered as a N600bn reopening. Investors submitted bids totalling N947.83bn, while the DMO allotted N460.01bn at a marginal rate of 16.85 per cent. The rate represents a notable decline from the 17.79 per cent recorded for the same bond at the previous auction, pointing to lower required returns from investors on the longer-dated security.
Overall, the September auction shows that demand for Nigerian government securities remains substantial, with investors seeking almost 50 per cent more than the amount offered. However, the DMO accepted only N748.64bn of the N1.49tn bids submitted, indicating that the debt office maintained control over the volume of new borrowing despite the strong demand.
The latest auction comes as the Federal Government continues to rely on the domestic debt market to finance fiscal requirements and manage its debt portfolio. The movement in bond yields will also be closely watched in the secondary market, where government securities influence pricing across other fixed-income assets, including Treasury bills, corporate bonds and other debt instruments.
source: punch