The Federal Government, through the Debt Management Office (DMO), has opened subscriptions for N750 billion worth of Federal Government of Nigeria (FGN) bonds in its March 2026 issuance.
According to the official bond offer circular published on the DMO’s website on March 25, 2026, the auction comprises three re-opened instruments:
– N250 billion of the 17.945% FGN August 2030 bond
– N200 billion of the 17.95% FGN June 2032 bond
– N300 billion of the 19.89% FGN May 2033 bond
The auction is scheduled for Monday, March 30, 2026, with settlement on April 1, 2026. Bidding will be conducted on a yield-to-maturity basis through a competitive auction process, while the coupon rates remain fixed as these are re-openings of existing bonds.
This March issuance represents a N50 billion reduction from the N800 billion offered in February 2026. The previous month’s offer included N400 billion of the June 2032 bond, N300 billion of the May 2033 bond, and N100 billion of the February 2034 bond. The shift toward mid-tenor instruments (2030 and 2032) in March suggests a more measured borrowing strategy focused on balancing the debt maturity profile.
The offer comes against the backdrop of ongoing fiscal pressures and the government’s continued reliance on the domestic debt market to finance budget deficits and refinance maturing obligations. However, the slight reduction in size may reflect improved liquidity conditions supported by higher oil prices and efforts to moderate rising debt service costs.
Coupon rates on the March bonds remain elevated at 17.945% for the 2030 tenor, 17.95% for the 2032 tenor, and 19.89% for the 2033 tenor, broadly consistent with February levels. While final borrowing costs will be determined by stop-out yields at the auction, current coupon benchmarks indicate that yields are likely to stay around recent levels unless there is a significant improvement in liquidity or a shift in inflation expectations.
This borrowing activity underscores the Federal Government’s strategy to manage its growing debt profile through the domestic market while navigating high interest costs and the need for fiscal sustainability in 2026.
