Federal Government's bond sales draw in N1.74 trillion, exceed target by 45%

The Federal Government of Nigeria's bond auction in July 2026 garnered an overwhelming response, with subscriptions exceeding the offered amount by 45 percent, or N540 billion, to reach a total of N1.74 trillion, surpassing the N1.2 trillion offered by the Debt Management Office.

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This notable oversubscription underscores the robust demand for Federal Government of Nigeria debt instruments among investors, as evidenced by the strong turnout for the auction.

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According to the Debt Management Office's release of the July FGN Bond Auction results, investors placed bids worth N1.74 trillion for bonds valued at N1.2 trillion, while the total allotments saw a decline of 23.8 percent to N929.32 billion in July, compared to N1.22 trillion in June.

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The auction featured three bond instruments: the 22.6 percent FGN JAN 2035, the 16.25 percent FGN APRIL 2037, and the 15.45 percent FGN JUN 2038 bonds, with each instrument having N400 billion on offer.

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The APRIL 2037 bond drew the most interest from investors, attracting N665.19 billion in bids from 122 successful applicants, and also received the largest share of allotments, totalling N381.46 billion.

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The JAN 2035 bond garnered N245.73 billion in subscriptions, while the JUN 2038 bond secured N302.13 billion in bids from investors.

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The clearing yields for the bonds were recorded as follows: 18.34 percent for the JAN 2035 bond, 18.35 percent for the APRIL 2037 bond, and 18.40 percent for the JUN 2038 bond.

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During the auction, the bonds were priced within specific ranges: 16 percent to 22.6 percent for the JAN 2035 bond, 16 percent to 19.58 percent for the APRIL 2037 bond, and 17 percent to 20.45 percent for the JUN 2038 bond.

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The auction results demonstrate the sustained and growing appetite among investors for Nigerian government debt, despite the tightening of allotments compared to previous months.