Nigeria’s Debt Management Office (DMO) has allotted N1.56 trillion worth of Federal Government of Nigeria (FGN) bonds at its August 17, 2026 auction, following strong investor demand totalling N1.73 trillion.
The auction, which offered N1.10 trillion across three reopened bonds, attracted 595 bids, of which 226 were successful. Settlement is scheduled for Wednesday, August 19.
The securities comprised the 22.60% FGN January 2035 bond, the 16.2499% FGN April 2037 bond and the 15.45% FGN June 2038 bond.
The 2038 bond recorded the strongest demand, attracting 225 bids valued at N821.32 billion. The DMO accepted 161 of the bids, allotting N631.02 billion through the competitive window and another N742.29 billion through the non-competitive window.
The 2035 bond received 199 bids worth N513.61 billion, with 31 successful bids. The DMO allotted N64.13 billion through the competitive market and N10 billion through the non-competitive window.
The 2037 bond attracted 171 bids valued at N392.48 billion, with 34 successful bids. A total of N110.01 billion was allotted at a marginal rate of 17.19%.
The marginal rates for the three instruments stood at 17.15% for the 2035 bond, 17.19% for the 2037 bond and 17.79% for the 2038 bond.
The latest rates represent a decline of more than 100 basis points from the July auction, when the corresponding marginal rates were 18.34%, 18.35% and 18.40%.
The lower rates indicate easing yields in the government securities market, even as investors continued to show strong appetite for long-term sovereign debt.
The DMO attributed the significantly higher total allotment, compared with the N1.10 trillion initially offered, largely to the heavily subscribed non-competitive window, particularly for the 2038 bond.
The August auction also marked a sharp increase in the amount allotted compared with July, when the DMO allotted N929.32 billion after receiving N1.74 trillion in bids.
FGN bonds are long-term debt instruments issued by the DMO on behalf of the Federal Government to finance budget deficits and other public expenditure. Investors receive periodic coupon payments, while the principal is repaid at maturity.
The latest auction forms part of the DMO’s third-quarter 2026 bond programme, which includes reopenings of the three securities in July, August and September.
