FGN Bond Auction Draws N948bn in Strong Investor Demand Across Three Maturities
Nigeria’s domestic debt market recorded a strong showing in April 2026 as the Federal Government’s latest bond auction attracted a total of N948 billion in investor bids, significantly higher than the N700 billion offered across three different maturities. The result highlights sustained investor confidence in government securities despite ongoing economic pressures.
According to a circular released by the Debt Management Office (DMO), the auction was conducted on April 27, 2026 and included re-openings of the 17.945% FGN August 2030 bond, the 17.95% FGN June 2032 bond, and the 22.60% FGN January 2035 bond. Settlement for the successful bids is scheduled for April 29, 2026.
Investor participation was broad, but demand clearly leaned toward longer-term instruments, reflecting a market preference for higher yields in a tight monetary environment. The 10-year 2035 bond dominated activity, attracting the bulk of subscriptions compared to the shorter-dated papers.
In total, the 2035 bond received N599.02 billion in bids, far exceeding its N300 billion offer. The 2032 bond attracted N167.04 billion against N100 billion offered, while the 2030 bond recorded N181.94 billion compared to N300 billion offered, indicating weaker demand at the shorter end of the curve. Across the auction, a total of 339 bids were received.
Pricing also revealed mixed investor expectations, with bid rates ranging between 15.00% and 22.60%, signaling uncertainty around inflation and future interest rate direction. However, the DMO ultimately cleared the bonds at tighter marginal rates of 16.30% for the 2030 bond, 16.50% for the 2032 bond, and 16.59% for the 2035 bond, demonstrating firm pricing discipline.
The strong outcome reinforces the government’s continued reliance on the domestic debt market to fund fiscal needs amid limited external financing options. It also reflects Nigeria’s ongoing strategy to deepen and strengthen its sovereign yield curve through regular bond re-openings across multiple tenors.
source: Business day