The Federal Government of Nigeria has successfully raised N1.22 trillion through its June 2026 bond auction, highlighting strong investor confidence in government securities despite current economic challenges.
According to information released by the Debt Management Office (DMO), the auction attracted significant interest from investors, with total subscriptions exceeding the amount initially offered. The development demonstrates the continued demand for Federal Government of Nigeria (FGN) bonds as investors seek secure investment opportunities.
For the June auction, the DMO offered two reopened bond instruments valued at N600 billion each, bringing the total offer size to N1.2 trillion. The bonds included the 22.60 per cent FGN January 2035 bond and the 16.2499 per cent FGN April 2037 bond.
Investor response surpassed expectations, with total subscriptions reaching N1.413 trillion. This represented an oversubscription of approximately N213.49 billion above the amount offered, indicating strong market appetite for long-term government debt instruments.
The FGN January 2035 bond, which has about eight years and seven months remaining before maturity, attracted substantial interest. The DMO received 179 bids for the instrument, with investors seeking to invest a combined N705.22 billion.
Out of the total bids received for the January 2035 bond, 135 were accepted. The government eventually allotted N600.90 billion worth of the bond. The instrument cleared at a marginal rate of 18.34 per cent, while investor bids ranged from 16.00 per cent to 22.60 per cent.
Similarly, the FGN April 2037 bond also recorded strong participation. The bond attracted 215 bids from investors, with subscriptions totaling N708.27 billion.
The DMO approved 181 successful bids for the April 2037 bond and allotted N621 billion to investors. The bond cleared at a marginal rate of 18.35 per cent, with bid rates ranging from 16.00 per cent to 21.75 per cent.
In total, the federal government allotted N1.2219 trillion across both bond instruments, slightly exceeding the original offer size of N1.2 trillion. The outcome reflects investors’ confidence in government-backed securities and the ability of the debt market to attract large volumes of capital.
The DMO also confirmed that the original coupon rates attached to both bonds remain unchanged. Investors in the January 2035 bond will continue to earn a coupon rate of 22.60 per cent, while holders of the April 2037 bond will receive 16.2499 per cent.
Financial analysts say the strong demand for the bonds reflects investors’ preference for relatively safe and stable investment options. It also highlights the government’s ability to access funding from the domestic debt market to support budgetary and developmental needs.
The successful auction is expected to strengthen government financing efforts while providing investors with attractive long-term investment opportunities in the Nigerian capital market.
