The Federal Government, through the Debt Management Office (DMO), raised a total of N929.32 billion at its July 2026 Federal Government bond auction after attracting subscriptions of N1.74 trillion, reflecting sustained investor appetite for sovereign debt despite a partial allotment strategy.
The auction, conducted on July 20, 2026, featured the re-opening of three existing instruments: the 22.60 per cent FGN January 2035, 16.2499 per cent FGN April 2037, and 15.45 per cent FGN June 2038 bonds. Settlement is scheduled for July 22, 2026.
The DMO had offered N400 billion on each of the three instruments, amounting to a total offer of N1.2 trillion.
However, investors submitted bids worth N555.47 billion for the 2035 bond, N665.19 billion for the 2037 bond and N518.00 billion for the 2038 bond, bringing the combined subscription to about N1.74 trillion, representing an overall subscription rate of about 145 per cent of the amount on offer.
Despite the strong demand, the DMO allotted a total of N929.32 billion to successful investors, indicating a measured borrowing approach.
A breakdown of the allotment showed that N245.73 billion was allotted on the 22.60 per cent FGN January 2035 bond, while the 16.2499 per cent FGN April 2037 bond accounted for the largest share with N381.46 billion allotted.
For the 15.45 per cent FGN June 2038 bond, the DMO allotted N302.13 billion, in addition to a N50 billion non-competitive bid, bringing total allocation under the instrument to N352.13 billion.
Investor participation remained robust across all maturities.
The 10-year January 2035 bond attracted 184 bids, of which 90 were successful.
The 20-year April 2037 bond recorded the highest level of participation with 211 bids, including 126 successful bids.
Meanwhile, the June 2038 bond received 161 bids, with 92 accepted.
The range of bids submitted reflected varying investor expectations on yields.
For the January 2035 bond, bids ranged from 16.00 per cent to 22.60 per cent, while the April 2037 instrument received bids between 16.00 per cent and 19.58 per cent.
The June 2038 bond attracted bids within a range of 17.00 per cent to 20.45 per cent.
The DMO allotted the successful bids at marginal rates of 18.34 per cent for the January 2035 bond, 18.35 per cent for the April 2037 bond and 18.40 per cent for the June 2038 bond.
According to the DMO, the original coupon rates of 22.60 per cent, 16.2499 per cent and 15.45 per cent on the respective bonds will be maintained.
The July auction underscores continued confidence in Federal Government securities, with institutional investors such as pension fund administrators, banks, insurance companies and asset managers remaining active participants in the domestic debt market.
The outcome also shows the government’s strategy of balancing its domestic borrowing programme with prudent debt management by raising less than the amount offered despite strong investor demand.
