FGN bond auction allots N1.56tn as bids hit N1.73tn, rates ease vs June
Nigeria’s Debt Management Office allotted N1.56 trillion across three FGN bond offerings at its August 17, 2026 auction, after investors submitted bids worth N1.73 trillion. The auction offered N1.10 trillion in the reopened 22.60% FGN January 2035, 16.2499% FGN April 2037 and 15.45% FGN June 2038 bonds. Settlement is set for Wednesday, August 19.
The 15.45% FGN June 2038 bond attracted the strongest demand, drawing N821.32 billion in bids. The DMO allotted N631.02 billion to competitive investors and a further N742.29 billion through the non‑competitive window, pushing the total allotment on that single instrument above N1.37 trillion. Marginal rates settled at 17.15% for the 2035 bond, 17.19% for the 2037 bond and 17.79% for the 2038 bond—each below the June auction levels of over 18%.
The heavy non‑competitive allotment, especially on the 2038 paper, drove the DMO to exceed its original N1.1 trillion offer. Compared with the July 20 auction, where N929.32 billion was allotted at marginal rates of 18.34‑18.40%, this month’s stop rates eased by more than 100 basis points while total allotment rose.
FGN bonds are long‑term debt instruments used to finance budget deficits and public spending, paying fixed coupons and repaying principal at maturity. They serve as a benchmark for Nigeria’s fixed‑income market and qualify for tax‑exempt status under the Companies Income Tax Act and Personal Income Tax Act.