FGN Bond Subscription Reaches N6.8 Trillion in 2026

In the first four months of 2026, subscription to Federal Government of Nigeria (FGN) bonds hit N6.8 trillion, representing an 87% increase compared to N3.7 trillion in the same period of 2025. This surge reflects sustained government reliance on the domestic debt market to fund fiscal obligations amid constrained external financing conditions.

The Debt Management Office (DMO) aimed to raise N3.15 trillion to bridge a budget deficit, which is a 117% increase from the N1.45 trillion offered in the first four months of 2025. The DMO's monthly bond auctions indicated strong demand, particularly for long-term bonds, with total demand settling at N2.25 trillion in January 2026 and N2.69 trillion in February 2026.

The stop rates for various bonds showed fluctuations, with the February 2034 bond declining by 200 basis points to 15.50%. The DMO's strategy to reopen bonds across multiple maturities has attracted significant interest from investors, particularly pension fund administrators, reflecting a preference for risk-free instruments.