Nigeria’s Debt Management Office (DMO) allotted N929.32 billion across three Federal Government of Nigeria (FGN) bond offerings at its July 2026 bond auction after investors submitted bids worth N1.74 trillion.

This reflects sustained appetite for government securities despite lower allotments than the total amount subscribed

This is contained in DMO’s circular issued on Monday.

The auction, held on July 20, 2026, featured the re-opening of the 22.60% FGN January 2035, 16.2499% FGN April 2037, and 15.45% FGN June 2038 bonds, with settlement scheduled for July 22.

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Although theDMO initially offered N1.2 trillion across the three instruments, it allotted about 77.4% of the amount offered following strong investor demand.

What the DMO is saying

The DMO said investors submitted a combined 556 bids valued at N1.74 trillion, with 308 bids accepted across the three bond tenors.

  • The 22.60% FGN January 2035 bond attracted subscriptions of N555.47 billion, with N245.73 billion allotted at a marginal rate of 18.34%.
  • The 16.2499% FGN April 2037 bond recorded the highest demand, receiving N665.19 billion in subscriptions, while N381.46 billion was allotted at a marginal rate of 18.35%.
  • The 15.45% FGN June 2038 bond received N518.00 billion in subscriptions, with N302.13 billion allotted to investors, including a N50 billion non-competitive allotment, at a marginal rate of 18.40%.

The DMO noted that while successful bids were allotted at the respective marginal rates, the original coupon rates of 22.60%, 16.2499%, and 15.45% would be maintained.

The July auction highlights continued investor confidence in Federal Government securities, with total subscriptions exceeding the amount offered by more than N540 billion.

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Demand remained strongest for the longer-dated April 2037 bond, reflecting investors’ willingness to lock in attractive yields amid expectations around interest rate movements.

What you should know

The July auction follows a similar exercise conducted in June 2026, when the DMO reopened two FGN bonds to raise a combined N1.2 trillion.

  • FGN bonds are long-term debt instruments issued by the Debt Management Office on behalf of the Federal Government to finance budget deficits and support public spending.
  • Investors receive fixed coupon payments throughout the life of the bond, while the principal is repaid at maturity.
  • FGN bonds remain one of Nigeria’s benchmark fixed-income instruments because they are backed by the full faith and credit of the Federal Government.

The bonds qualify as trustee investments under the Trustee Investment Act and are recognised as government securities for tax-exempt investment purposes under the Company Income Tax Act and Personal Income Tax Act.

Under that offer, the Debt Office made available N600 billion each in a 10-year and a 20-year bond reopening, with settlement completed on June 24, 2026.