The Debt Management Office (DMO) has announced that Nigeria’s May 2026 Federal Government bond auction attracted total subscriptions of N796.17 billion, highlighting sustained investor appetite for sovereign debt securities despite changing market conditions.
According to the auction result released on Monday, the DMO offered N600 billion across two re-opened instruments, the 22.60 percent FGN JAN 2035 bond and the 16.2499 percent FGN APR 2037 bond.
Market subscriptions for the two instruments stood at N516.17 billion, while non-competitive bids accounted for an additional N280 billion, bringing total demand to N796.17 billion.
The 2035 bond, which has a remaining term-to-maturity of eight years and eight months, recorded market subscriptions of N262.23 billion from 130 bids, out of which 79 were successful. The DMO eventually allotted N137.67 billion at a marginal rate of 17 percent.
Meanwhile, the 2037 bond, with a remaining tenor of 10 years and 11 months, attracted stronger investor interest with subscriptions of N253.94 billion from 135 bids. The instrument also received N280 billion in non-competitive bids, pushing total allotment to N476.84 billion. A total of 96 bids were successful, while the marginal rate settled at 17.04 percent.
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The auction results showed bid ranges of 15 percent to 22.60 percent for the 2035 paper and 14 percent to 18.49 percent for the 2037 bond.
The DMO said the original coupon rates of 22.60 percent for the January 2035 bond and 16.2499 percent for the April 2037 bond would be maintained.
This strong turnout reflects continued demand from pension funds, banks and institutional investors seeking relatively high-yield fixed income instruments amid moderating inflation expectations and improved liquidity conditions in the domestic debt market.
The result also highlights the government’s reliance on the domestic bond market to finance fiscal obligations, even as borrowing costs remain elevated.
“The outcome of the auction highlights the continued role of the domestic bond market in supporting the Federal Government’s financing needs,” the DMO said in the statement.
Settlement for the auction is scheduled for May 20, 2026.