FG Raises N2.7 Trillion via Bond Market to Address Deficit

In the first quarter of 2026, the Federal Government of Nigeria, through the Debt Management Office (DMO), raised N2.7 trillion via bond auctions, marking a 38.76% increase from N1.94 trillion in Q1 2025. The DMO offered N2.45 trillion against N1.1 trillion in the previous year, aiming to bridge the budget deficit.

Investor subscriptions reached N5.88 trillion, a 107.7% increase compared to N2.83 trillion in the same period of 2025. The DMO's bond auctions included reopenings for bonds maturing in February 2031, February 2034, and January 2035, with total allotments of N1.7 trillion and N524.28 billion at varying stop rates.

The DMO anticipates raising N5.26 trillion through the bond market in 2025, a decrease from N5.84 trillion in 2024. Analysts attribute the strong demand for bonds to investor confidence in the government's capacity to meet its debt obligations, despite modest yields and rising fiscal pressures.