FGN Bond Subscription Surpasses N13tn Amid Strong Demand

From January to September 2026, total subscription to Federal Government of Nigeria (FGN) Bonds surpassed N13 trillion, reaching N13.72 trillion. This surge was attributed to significant demand from institutional investors such as pension funds, banks, and insurance companies, drawn by relatively attractive rates.

The Debt Management Office (DMO) aimed to raise N8.35 trillion to address budget deficits but managed to secure N7.14 trillion during this period. The DMO's September 2026 auction included a new 10-year bond at a rate of 16.79% and a re-opening of a 12-year bond at 15.45%, with total demand at N1.49 trillion against an offer of N1 trillion.

Although the amount allotted decreased from N805.16 billion in August to N748.64 billion in September, the proportion of the amount offered that was allotted increased from 73.2% to 74.9%. The auction remained oversubscribed despite a decline in subscriptions from N1.727 trillion in August to N1.495 trillion in September.