FG Raises N7.62tn from Bond Market in Eight Months

Between January and August 2026, the Federal Government of Nigeria raised N7.62 trillion from the domestic bond market, utilizing eight bond auctions conducted by the Debt Management Office (DMO). This funding is crucial for financing the government's budget and other fiscal obligations, especially with a projected budget deficit of approximately N31.5 trillion.

In the August bond auction, the DMO allotted N805.2 billion through competitive bids across the January 2035, April 2037, and June 2038 bonds. Although competitive bids were below the N1.1 trillion offered, total allotments reached about N1.56 trillion, including N752.3 billion from non-competitive bids.

Investor demand remained strong, with subscriptions totaling N1.7 trillion and a bid-to-cover ratio of 2.1 times. The June 2038 bond saw the highest demand, attracting N821.3 billion in bids.

Despite this demand, the DMO adopted a cautious pricing strategy, with the June 2038 bond yielding 17.79 percent and the January 2035 bond yielding 17.15 percent.