The Federal Government has raised N748.64bn through its September 2026 domestic bond auction, with investors submitting bids worth N1.49tn for the two securities offered by the Debt Management Office.
The strong demand came as borrowing rates showed signs of easing, particularly on the reopened 15-year Federal Government of Nigeria bond.
The DMO offered N1tn through a N400bn 10-year bond and a N600bn reopening of the 15-year bond. Investors submitted N546.90bn in bids for the 10-year instrument and N947.83bn for the 15-year paper.
The DMO eventually allotted N288.83bn on the 10-year bond at a marginal rate of 16.79 per cent, while N460.01bn was allotted on the 15-year bond at 16.85 per cent.
The rate on the 15-year bond represents a decline from the 17.79 per cent recorded at the previous auction, indicating some moderation in investors’ required returns on longer-term government securities.
Overall, investors sought about 49.5 per cent more than the N1tn offered by the government, although the DMO accepted only N748.64bn of the total bids.
The auction comes as the Federal Government continues to rely on the domestic debt market to finance its fiscal requirements and manage its debt portfolio.
