[REVISION HISTORY]

Nigeria domestic government bond market activity

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-14 07:26 UTC → 2026-10-18 22:04 UTC · added ~~removed~~

In 2026, the Nigerian Federal Government significantly increased its domestic borrowing through the bond market. During the first nine months of the year, the Debt Management Office (DMO) allotted ₦7.15 trillion in FGN bonds, a 106 per cent increase compared to the ₦3.48 trillion allotted during the same period in 2025. This surge was primarily driven by high volumes in January (₦1.54 trillion), June (₦1.22 trillion), July (₦931.82 billion), and August (₦805.16 billion). Investor demand remained robust, with total subscriptions reaching ₦13.72 trillion over the nine-month period, nearly double the amount actually allotted. While borrowing costs showed signs of easing—with recent 10-year and 2038 bonds clearing at approximately 16.79 per cent and 16.85 per cent respectively—analysts suggest monitoring interest-rate directions and disinflation trends. Looking toward As the fourth quarter of ~~2026,~~ 2026 begins, the DMO ~~has set a target~~ is moving to ~~raise~~ meet its target of raising ₦5.75 trillion through bond issuances, representing approximately 80 per cent of the total allotments from the first nine months. This provisional plan includes ₦1.75 trillion in October, followed by ₦2 trillion each in November and December. issuances. An auction scheduled for October 19, 2026, will offer ₦1.75 trillion in reopened FGN ~~bonds, comprising~~ bonds. This offering includes ₦500 billion in 10-year bonds at 19 per cent, ₦800 billion in 10-year bonds at 16.79 per cent, and ₦450 billion in 15-year bonds at 15.45 per cent. These instruments include the reopening of 10-year bonds from February 2034 and September 2036, alongside a 15-year bond from June 2038. Parallel to bond market activity, recent Treasury bills auctions conducted by the Central Bank of Nigeria on behalf of the Federal Government showed a tightening of credit; the DMO accepted only ₦269.06 billion out of ₦1.032 trillion in submitted bids, rejecting ₦763 billion. During this period, the 364-day T-bill stop rate rose to 15.90 per cent from 15.85 per cent, marking the first increase since August. Additionally, the Federation Account Allocation Committee (FAAC) distributed ₦2.428 trillion in revenue for September 2026. While statutory revenue increased compared to August, Value Added Tax (VAT) revenue declined by approximately ₦17.972 billion.

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