FGN bond auction overshoots N900bn offer, allots N1.54trn in January 

The Federal Government of Nigeria (FGN) allotted a total of N1.54 trillion at its January 2026 bond auction, demonstrating sustained investor confidence in government securities despite a high-interest-rate environment.

The figures were published by the Debt Management Office (DMO) following the auction held on January 26, 2026.

The auction featured the re-opening of three existing bond instruments, with total allotments significantly exceeding the amount initially offered.

The DMO had put a combined N900 billion on offer across the three bonds, but investor appetite pushed total allotments well above that level, reflecting continued confidence in FGN securities and the attractiveness of prevailing yields.

Settlement for all successful bids is scheduled for January 28, 2026.

What the data is saying 

Investor demand was strong across all maturities on offer, with each of the three reopened bonds recording oversubscription.

The data show that longer-dated instruments attracted particularly robust interest, despite wide bid ranges.

• The 18.50 per cent FGN February 2031 bond had N300 billion on offer but attracted bids worth N514.45 billion from 124 submissions, with N398.19 billion allotted, including N17.50 billion in non-competitive allotments.
• The 19.00 per cent FGN February 2034 bond saw subscriptions surge to about N1.01 trillion against an offer of N400 billion, leading to an allotment of N576.33 billion, including N113.22 billion allotted on a non-competitive basis.
• The 22.60 per cent FGN January 2035 bond recorded subscriptions of N731.40 billion for an offer size of N200 billion, with total allotment reaching N570.16 billion from 176 successful bids.

Overall, marginal rates for the three bonds settled between 17.50 per cent and 17.62 per cent, even as bid ranges extended as high as 25.90 per cent on the longest-dated instrument.

More Insights 

The auction results point to strong demand across the yield curve, with investors willing to lock in longer tenors despite uncertainty in the broader macroeconomic environment.

Notably, marginal rates cleared well below the original coupon rates, reflecting aggressive bidding.

• The February 2031 bond, with a remaining term of 5 years and 1 month, cleared at a marginal rate of 17.62 per cent, with bids ranging from 15.85 per cent to 18.50 per cent.
• The February 2034 bond, which has about 8 years and 1 month left to maturity, recorded a marginal rate of 17.50 per cent, within a bid range of 16.00 per cent to 19.40 per cent.
• The January 2035 bond, with roughly 9 years to maturity, cleared at a marginal rate of 17.52 per cent, despite bids ranging widely between 16.00 per cent and 25.90 per cent.

The DMO clarified that while allotments were made at these marginal rates, the original coupon rates of 18.50 per cent, 19.00 per cent, and 22.60 per cent will be maintained over the life of the respective instruments.

Flashback 

This strong showing follows earlier signals of sustained investor appetite for FGN bonds in recent auctions.

Nairametrics previously reported that the Federal Government planned to raise N900 billion through the re-opening of three bonds at the January 2026 auction.

• In December 2025, the Federal Government raised a total of N596.465 billion at its December 15 bond auction.
• That auction involved the re-opening of the 17.945 per cent FGN August 2030 (5-year bond) and the 17.95 per cent FGN June 2032 (7-year bond).
• The DMO had earlier announced subscription openings totalling N460 billion for that December auction.

These earlier results set the stage for the strong oversubscription seen in January 2026.

What you should know 

FGN bond auctions remain a key component of Nigeria’s domestic borrowing strategy and an important benchmark for pricing other fixed-income instruments in the market.

• Between January and December 2025, total FGN bond allotments reached approximately N5.12 trillion, according to DMO data.
• In January 2025 alone, the Federal Government raised N669.94 billion against an offer size of N450 billion, also indicating strong demand early in the year.