FG raises N748.6bn as bond rates ease

Abimbola Joseph

The Federal Government raised N748.64bn from its September 2026 domestic bond auction as investors placed N1.49tn in bids for the two securities on offer, signalling strong demand amid easing borrowing rates.

The Debt Management Office allotted N288.83bn of the N400bn offered in the 10-year FGN bond at a marginal rate of 16.79 per cent.

Investors submitted bids worth N546.90bn for the 10-year instrument, exceeding the amount offered by 36.7 per cent.

The 15-year FGN bond, offered as a N600bn reopening, attracted even stronger demand, with investors submitting N947.83bn in bids.

The DMO allotted N460.01bn from the 15-year reopening at a marginal rate of 16.85 per cent, down sharply from the 17.79 per cent recorded at the previous auction.

Across the two securities, investors sought N1.49tn, about 49.5 per cent above the N1tn offered by the DMO.

Despite the strong demand, the debt office accepted N748.64bn, leaving about N746.59bn of the bids unallotted.

The auction results point to sustained investor appetite for Nigerian government securities, while the lower marginal rate on the 15-year bond suggests some easing in the returns investors are demanding for holding longer-term government debt.

The moderation in borrowing rates comes as the Federal Government continues to rely on the domestic debt market to finance its fiscal needs and manage its debt portfolio. The latest auction is also likely to influence activity in the secondary bond market, where movements in government bond yields affect pricing across other fixed-income instruments, including Treasury bills and corporate bonds.