FGN bond auction attracts N948 billion bids across three maturities

The Federal Government’s April 2026 bond auction attracted a total of N948 billion in bids—well above the N700 billion offered—across three maturities.

This is according to the latest circular published on the Debt Management Office’s (DMO) website on Monday.

According to the DMO, the auction was conducted on April 27, 2026 and covered the re-opening of the 17.945% FGN August 2030 bond, the 17.95% FGN June 2032 bond, and the 22.60% FGN January 2035 bond.

Settlement is scheduled for April 29, 2026.

Investor participation was broad-based, but demand was heavily skewed toward the long end of the curve, reflecting continued preference for higher yields in a tight monetary environment.

What the data is saying 

The auction results show strong but selective demand across the three instruments, with the 10-year paper dominating subscriptions.

• Total subscriptions stood at about N948 billion across all instruments
• The 10-year 2035 bond attracted N599.02 billion in bids versus N300 billion offered
• The 7-year 2032 bond recorded N167.04 billion against N100 billion offered
• The 5-year 2030 bond drew N181.94 billion against N300 billion offered
• A total of 339 bids were received across the auction

The data shows that investor demand was strongest at the long end, while shorter tenors saw relatively softer participation, particularly the 5-year bond which was under-subscribed relative to its offer size.

More insights and market context 

The widespread bid rates, ranging from 15.00% to 22.60%, also point to divergent investor expectations around inflation, monetary policy direction, and future interest rate movements.

However, marginal rates ultimately cleared at 16.30% for the 2030 bond, 16.50% for the 2032 bond, and 16.59% for the 2035 bond, indicating the Debt Management Office maintained tighter pricing discipline than peak bids suggested.

The auction comes against a backdrop of sustained government reliance on the domestic debt market to fund fiscal obligations amid constrained external financing conditions. It also reflects the ongoing strategy to deepen Nigeria’s sovereign yield curve through regular re-openings across multiple maturities.

What you should know 

Nairametrics earlier reported that the Federal Government is expected to raise N700 billion through a Federal Government Bond (FGN) auction scheduled for Monday, April 27, 2026.

• The offer circular indicates that the Federal Government will raise the N700 billion through three bond re-openings across different maturities.
• Recently, DMO increased borrowing costs at its latest Federal Government (FGN) bond auction conducted on Monday, March 30, while significantly cutting allotments to N485.50 billion.
• The reissued FGN bonds were originally offered at much higher stop rates than the current prevailing rates.

For instance, the AUG 2030 Bond was originally issued at 17.94% stop rate; the JUN 2033 Bond was originally offered at 17.95% stop rate, while MAY 2033 Bond was originally offered at 19.89% stop rate.