The Federal Government has successfully raised N614.5 billion from the domestic bond market through its May 2026 FGN bond auction, driven largely by strong investor interest in long-term government securities.
According to results released by the Debt Management Office, the funds were raised from two reopened bonds: the 22.60% FGN January 2035 bond and the 16.2499% FGN April 2037 bond. Each instrument was initially offered at N300 billion.
Investor appetite was especially strong for longer maturities, showing confidence in Nigeria’s fixed-income market despite high interest rate conditions.
The January 2035 bond attracted total subscriptions of N262.23 billion from 130 bids, out of which 79 were successful. The government eventually allotted N137.67 billion to the instrument.
Bids for this bond ranged between 15.00% and 22.60%, while the final marginal rate settled at 17.00%. Although investors bid at different yield levels, successful allocations were made at the marginal rate, while the original coupon rate of 22.60% remains unchanged.
The bond still has about 8 years and 8 months left to maturity, making it attractive to investors seeking medium- to long-term stable returns.
The April 2037 bond recorded even stronger demand, particularly from institutional investors. It received 135 bids, with 96 bids accepted.
Total subscriptions stood at N253.94 billion, alongside an additional N280 billion in non-competitive bids. This pushed total allotment significantly higher to N476.84 billion, well above the initial offer of N300 billion.
Bid rates ranged from 14.00% to 18.49%, while the marginal rate closed at 17.04%. The bond has a longer maturity of about 10 years and 11 months, making it more appealing to investors looking for higher long-term yields.
In a related development, the Central Bank of Nigeria has opened a N650 billion Treasury Bills (NTB) auction as part of efforts to manage liquidity in the financial system.
The auction, scheduled for Wednesday, May 20, 2026, is part of the government’s short-term borrowing programme used to fund immediate fiscal obligations and regulate money supply.
The offer includes:
N100 billion in 91-day bills
N50 billion in 182-day bills
N500 billion in 364-day bills
The auction will be conducted using the Dutch auction system, and results are expected on the same day. Successful bidders are required to fund their accounts by 11:00 a.m. on the settlement date.
This issuance follows an earlier NTB auction conducted on May 7, 2026, where N700 billion worth of bills were offered across similar maturities.
Market analysts expect strong participation in the auction, especially for the 364-day bills, which typically offer more attractive yields compared to shorter tenors.
According to Cordros Research analysts, liquidity levels in the financial system remain high, which is expected to support robust demand across the fixed-income market. They also noted that yields may remain stable or slightly decline due to strong investor appetite.
Overall, the combination of strong bond demand and continued Treasury Bill issuance reflects sustained investor confidence in Nigeria’s debt market, even amid tight monetary conditions.
