Nigeria raises N5.08 trillion in bonds as yields stay high through 2026

The Federal Government of Nigeria lifted domestic borrowing to N5.08 trillion in the first half of 2026, a 78 % rise from the same period in 2025. Investor demand surged, with total subscriptions reaching N9.04 trillion, while the average marginal rate on the bonds fell to about 16.8 % from 19.8 % a year earlier. The Debt Management Office expanded its issuance, offering N4.95 trillion of bonds compared with N1.85 trillion in the prior year.

Analysts expect the high‑yield environment to continue until the fourth quarter of 2026. Persistent inflation at 15.9 % and a projected fiscal deficit of roughly ₦23.85 trillion are keeping the Central Bank of Nigeria’s monetary policy tight, with the policy rate held at 26.5 %. Treasury‑bill rates have topped 17 % and long‑term government‑bond yields are above 18 %, offering attractive returns for investors but raising borrowing costs for businesses and the broader economy.