FGN Bond Sale Surpasses ₦900bn Offer, Records ₦1.54trn Allotment

The Federal Government of Nigeria has allotted ₦1.54 trillion at its January 2026 bond auction, significantly exceeding the ₦900 billion initially offered, underscoring strong investor appetite for sovereign debt instruments despite elevated interest rates.

Data released by the Debt Management Office showed that the auction, conducted on January 26, recorded heavy subscriptions across all maturities, with demand cutting across institutional and long-term investors. Settlement for successful bids is scheduled for January 28.

The auction involved the re-opening of three existing Federal Government bonds, all of which were oversubscribed. Investor interest was particularly strong in longer-dated instruments, reflecting confidence in the government’s debt profile and the attractiveness of yields across the curve.

The 18.50 per cent February 2031 bond attracted bids exceeding ₦514 billion against an offer of ₦300 billion, with total allotment standing at ₦398.19 billion. The February 2034 bond, carrying a coupon of 19.00 per cent, recorded subscriptions of about ₦1.01 trillion for an offer size of ₦400 billion, leading to an allotment of ₦576.33 billion. Meanwhile, the 22.60 per cent January 2035 bond drew bids worth over ₦731 billion against an offer of ₦200 billion, with ₦570.16 billion allotted.

Marginal rates across the three instruments cleared between 17.50 per cent and 17.62 per cent, despite wide bid ranges, particularly on the longest tenor. The DMO confirmed that while the bonds were allotted at marginal rates, their original coupon rates would remain unchanged over the life of the instruments.

Market analysts say the outcome reflects sustained confidence in government securities, with investors willing to lock in longer maturities even amid macroeconomic uncertainty