The Federal Government raised N748.64 billion from its September 2026 domestic bond auction, with investors showing strong demand for both a newly issued 10-year instrument and a reopened 15-year bond.
The Debt Management Office allotted N288.83 billion of the N400 billion offered on the 10-year Federal Government of Nigeria bond at a marginal rate of 16.79 per cent. Investors submitted bids worth N546.90 billion for the paper, putting demand 36.7 per cent above the amount on offer.
The firmer appetite for the new 10-year security came with a moderation in the yield relative to recent borrowing levels, pointing to some improvement in investor interest in longer-dated government paper.
Fifteen-Year Reopening Clears at Lower Rate
For the 15-year FGN bond, offered as a N600 billion reopening, investors put in N947.83 billion in bids. The Debt Management Office allotted N460.01 billion at a marginal rate of 16.85 per cent, well below the 17.79 per cent recorded at the previous auction.
Across the two securities, total bids reached N1.49 trillion, about 49.5 per cent more than the N1 trillion offered. The office allotted N748.64 billion and left about N746.59 billion of the bids unaccepted.
Selective Issuance Despite Strong Demand
The results show that while demand for Nigerian government securities remained robust, the Debt Management Office was selective about the volume of debt it issued. The fall in the marginal rate on the 15-year bond also signals a gradual easing in the returns investors require on longer-term government debt, even though borrowing costs remain elevated.
The latest auction comes as the Federal Government continues to rely heavily on the domestic debt market to fund its fiscal needs and manage its debt portfolio. Secondary-market investors will watch the outcome closely, as movements in government bond yields influence pricing across fixed-income assets, including treasury bills, corporate bonds and other debt instruments.
