The Federal Government has raised ₦748.64 billion from the domestic bond market following its September 2026 Federal Government of Nigeria (FGN) bond auction.

The Debt Management Office (DMO) said investors submitted bids worth approximately ₦1.49 trillion for the two bonds offered at the auction, exceeding the government’s initial offer of ₦1 trillion.

The September auction featured a new 10-year FGN bond maturing in September 2036 and a reopening of the 15-year bond maturing in June 2038.

Investors Submit ₦1.49tn in Bids

For the 10-year bond, the DMO offered ₦400 billion, while investors submitted bids worth ₦546.90 billion.

The government eventually allotted ₦288.63 billion on the instrument at a marginal rate of 16.79 per cent.

The 15-year bond attracted stronger demand, with investors submitting ₦947.83 billion in bids against the ₦600 billion offered.

The DMO allotted ₦460.01 billion on the 15-year instrument at a marginal rate of 16.85 per cent.

Combined, the two instruments generated ₦1.49 trillion in investor subscriptions, while total allotments stood at ₦748.64 billion.

15-Year Bond Rate Falls by 94 Basis Points

One of the notable developments from the September auction was the decline in the marginal rate of the 15-year bond.

The rate fell to 16.85 per cent from 17.79 per cent recorded at the August auction, representing a decline of 94 basis points.

The movement means the government secured funds through the 15-year instrument at a lower marginal yield than in the previous auction.

The new 10-year bond, however, had no previous auction rate for a direct comparison.

Strong Demand for Government Securities

The level of subscriptions recorded during the auction indicates continued investor interest in FGN securities.

The ₦1.49 trillion in bids was significantly higher than the ₦1 trillion initially offered, although the DMO ultimately allotted ₦748.64 billion across the two instruments.

The September auction comes as the Federal Government continues to use the domestic debt market to raise funds for its financial obligations and manage its debt portfolio.

The reduction in the 15-year bond’s marginal rate also comes amid efforts to moderate domestic borrowing costs.

However, the government continues to pay relatively high yields on long-term naira-denominated debt, with the September 15-year instrument clearing at 16.85 per cent.

The latest auction therefore provides a fresh indication of investor demand for Nigerian government securities and the prevailing cost of domestic borrowing.