Kayode Tokede
In a bid to bridge its funds deficit, the federal authorities by way of the Debt Management Office (DMO), raised an estimated N8.4 trillion via the FGN Bond between January 2026 and October 2026.
According to the FGN bond public sale end result obtained by THISDAY, the federal government throughout the interval, provided to lift N10.1 trillion by way of the market with the intention of economic vital initiatives in Nigeria’s economic system.
The excessive demand for the FGN Bond noticed subscription hit N15.5 trillion, heled by giant institutional buyers demand on the again of excessive rates of interest.
The FGN Bond public sale comes in opposition to a backdrop of sustained authorities reliance on the home debt market to fund fiscal obligations amid constrained exterior financing circumstances.
Investor participation was broad-based, however demand was closely skewed towards the lengthy finish of the curve, reflecting continued choice for greater yields in a decent financial surroundings.
However, the most recent public sale outcomes present sturdy however selective demand throughout the three devices, with the 15-year paper dominating subscriptions.
At the FGN bond public sale for the month of October 2026, the DMO reopened the FEB 2034, SEP-2036 and JUN-2038 bonds, providing a complete of N1.75 trillion.
Total demand settled at N1.75 trillion (bid-to-offer: 1.0x), with the DMO ultimately allotting N1.21 trillion (bid-to-cover: 1.4x).
The cease charges on the SEP-2036 and JUN-2038 bonds, which had been on-the-run on the earlier public sale, expanded by 50basis factors and 34 foundation factors to settle at 17.29 per cent and 17.19 per cent, respectively. The FEB-2034 bond settled at 16.99 per cent.
The quantity provided by DMO elevated from N1trillion in September 2026 to N1.75 trillion reported in October 2026, about 75 per cent which is a part of a N5.75 trillion fourth‑quarter (This fall) 2026 bond programme.
DMO deliberate presents can be performed throughout three public sale dates in October, November and December, with the biggest month-to-month quantity scheduled for November and December at N2 trillion every.
The FGN Bond recorded a subscription of N1.74 trillion in in October 2026, representing a rise of 16.9 per cent from N1.49 trillion in September 2026, whereas complete quantity allotted moved from N748.64billion in September 2026 to N1.22trillion in October 2026.
The N15.5 trillion complete subscription within the 10 months of 2026 by buyers is a mirrored image that buyers, most particularly the Pension Fund Administrators (PFAs) are inclined to spend money on risk-free devices, of which FGN Bond and Nigerian Treasury Bills (NTB) supply to the investing public.
PFAs have performed a vital position in partaking within the FGN bond market. Since the start of the yr, the DMO regularly re-opened some FGN Bonds amid modest rates of interest in its strikes to draw buyers.
Analysts attributed the sturdy demand for FGN bonds to modest yields, stressing that the over-subscription additionally revealed that buyers trust within the federal authorities’s skill to satisfy its debt obligations.
The urge for food for FGN bonds signifies that PFAs, and Nigerian buyers desire funding devices with much less volatility that assures them of their capital returns albeit with low yield on funding.
Finance analysts attributed the sturdy demand for FGN bonds to modest yields, stressing that the over-subscription additionally revealed that buyers trust within the federal authorities’s skill to satisfy its debt obligations.
In current years, Nigeria’s rising debt profile has been a subject of concern, as Vice President, Highcap Securities Limited, Mr. David Adnori, warned that the nation’s debt ranges are unsustainable.
Nigeria’s public debt inventory stood at N166.79 trillion as of June 30, 2026, up from N159.35 trillion on the finish of March, in keeping with figures by DMO.
Domestic debt accounted for N91.59 trillion, representing 54.91per cent of the overall debt portfolio.
The deliberate N5.75 trillion in fourth-quarter bond presents would add to the federal authorities’s borrowing programme, though the provisional calendar stays topic to revision.
