FG Raises ₦7.62 Trillion in Bond Market Amid Demand

Between January and August 2026, the Federal Government of Nigeria raised ₦7.62 trillion from the domestic bond market, demonstrating its reliance on local fixed-income securities to meet financing needs. This funding was secured through eight bond auctions conducted by the Debt Management Office (DMO).

The latest auction in August allotted ₦805.2 billion across January 2035, April 2037, and June 2038 FGN bonds, which was below the ₦1.1 trillion offered. However, total allotments reached approximately ₦1.56 trillion after including ₦752.3 billion in non-competitive bids.

Investor demand remained robust, with total subscriptions hitting ₦1.7 trillion, resulting in a bid-to-cover ratio of 2.1 times. The June 2038 bond saw the highest demand, attracting ₦821.3 billion in subscriptions.

Despite strong demand, yields did not significantly increase, with the June 2038 bond yielding 17.79% and the January 2035 bond yielding 17.15%. This scenario indicates a tension in Nigeria's fixed-income market, as investors seek higher returns amid elevated inflation.