The Federal Government is set to raise N700 billion from the domestic debt market in April 2026, sustaining its borrowing strategy amid rising interest rates.
The issuance, to be conducted by the Debt Management Office, will take place through an auction scheduled for April 27, with settlement expected on April 29.
According to details from the April bond offer circular, the planned issuance will consist of reopened Federal Government bonds across three maturities, reflecting a strategy to deepen liquidity in existing instruments rather than introduce new ones.
The offer includes N300 billion in the 17.945% FGN August 2030 bond, N100 billion in the 17.95% FGN June 2032 bond, and another N300 billion in the 22.60% FGN January 2035 bond.
The structure indicates a continued preference for longer-dated securities, allowing the government to secure funding over an extended period while managing refinancing risks.
Analysts note that the relatively lower allocation to the seven-year instrument signals cautious investor demand across the yield curve, as concerns around inflation, exchange rate volatility, and global financial conditions persist.
The bonds will be issued in units of N1,000, with a minimum subscription of N50.001 million, targeting institutional investors such as pension funds, banks, and asset managers.
The DMO also noted that the instruments qualify as liquid assets for banks and enjoy tax exemptions under existing regulations, enhancing their appeal in the current high-yield environment.
A comparison with March figures shows a slight reduction in the government’s borrowing target from N750 billion to N700 billion, representing a marginal adjustment rather than a shift in overall strategy.
Despite the lower total offer, the allocation mix changed, with an increase in the five-year component and a significant cut in the seven-year offering, while the ten-year bond remained unchanged.
The coupon rates attached to the instruments highlight sustained pressure in Nigeria’s fixed-income market, particularly on long-term securities.
While the five-year and seven-year bonds carry rates around 17.9%, the ten-year bond offers a significantly higher yield of 22.60%, underscoring investor demand for greater returns on longer-duration assets.
Market observers attribute the elevated yields to macroeconomic uncertainties, including inflation risks and tight monetary conditions maintained by the Central Bank of Nigeria.
The high-rate environment has continued to increase the cost of borrowing for the government, with implications for debt servicing and fiscal sustainability
