Nigeria’s Debt Management Office (DMO) has allotted a combined N1.56 trillion across three Federal Government of Nigeria (FGN) bond offerings at its August 17, 2026 auction, after investors submitted bids worth N1.73 trillion.
The settlement of the debt instruments is scheduled for Wednesday, August 19.
The auction, which offered a combined N1.10 trillion across the reopened 22.60% FGN January 2035, 16.2499% FGN April 2037 and 15.45% FGN June 2038 bonds, recorded strong demand for long-dated government securities, with the 15.45% FGN June 2038 bond attracting the largest subscription and allocation.
The Office offered a combined N1.1 trillion across the three instruments: N250 billion on the 22.60% FGN January 2035 bond, N100 billion on the 16.2499% FGN April 2037 bond and N750 billion on the 15.45% FGN June 2038 bond.
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According to the data shared on the performance of the auction, investors submitted a total of 595 bids, valued at approximately N1.73 trillion, with 226 bids eventually successful.
A further analysis of the data reflected that the 22.60% FGN January 2035 bond attracted 199 bids worth N513.61 billion, out of which 31 bids were successful and that the Office allotted N64.13 billion to the competitive market and a further N10 billion on a non-competitive basis, at a marginal rate of 17.15%.
Also, the 16.2499% FGN April 2037 bond drew 171 bids worth N392.48 billion, with 34 bids successful out of which N110.01 billion was allotted to the market at a marginal rate of 17.19%, with no non-competitive allotment recorded.
The DMO data further reflected that the 15.45% FGN June 2038 bond recorded the strongest demand by far, pulling in 225 bids worth N821.32 billion, of which 161 were successful and the Office allotted N631.02 billion to the competitive market, alongside a bumper N742.29 billion in non-competitive allotments, at a marginal rate of 17.79% — pushing total allotment on that single instrument above N1.37 trillion.
Overall, in the three tenors, the DMO accepted 226 bids out of 595 submitted, with the original coupon rates of 22.60%, 16.2499% and 15.45% maintained even as successful bids were priced at the higher marginal rates.
Based on the above data, the FGN bond auction was heavily skewed toward the 15-year paper, the 15.45% FGN June 2038 bond, which accounted for almost half of total investor subscriptions and the bulk of total allotments while the bond cleared at a marginal rate of 17.79%, the highest among the three instruments, compared with 17.15% for the 2035 bond and 17.19% for the 2037 paper.
Investment experts believe that the DMO’s decision to allot substantially above the advertised N1.1 trillion offer was primarily informed by the non-competitive window, especially on the 2038 instrument which turned out the dominant auction.
The FGN bond marginal rates settled at 17.15% for the 2035 bond, 17.19% for the 2037 bond and 17.79% for the 2038 bond, reflecting a shift from the June 2026 auction in which the 2035 and 2037 bond issuance were cleared at 18.34% and 18.35% respectively.
