The Debt Management Office (DMO) has announced the outcome of the Federal Government’s May 2026 bond auction, with total allotments rising to approximately N614.5 billion across two re-opened instruments.
According to results released after the auction held on May 18, 2026, the Federal Government offered two bonds: the 22.60% FGN JAN 2035 and the 16.2499% FGN APR 2037, each with an initial offer size of N300 billion.
Settlement for both instruments is scheduled for May 20, 2026.
The auction reflected stronger investor appetite for the longer-dated 2037 bond, which attracted higher demand and a larger share of total allocations, including substantial non-competitive bids.
For the 22.60% FGN JAN 2035 bond, the DMO recorded total subscriptions of N262.23 billion from 130 bids, out of which 79 were successful.
A total of N137.67 billion was allotted to the instrument, which has a remaining tenor of 8 years and 8 months. Bid rates ranged between 15.00% and 22.60%, while the marginal rate settled at 17.00%.
The DMO confirmed that successful bids were allotted at the marginal rate of 17.00%, while the original coupon rate of 22.60% remains unchanged.
Investor interest was significantly stronger in the 16.2499% FGN APR 2037 bond, which attracted robust participation from institutional investors.
The instrument received 135 bids, with 96 accepted. Total subscriptions stood at N253.94 billion, alongside N280 billion in non-competitive bids.
This pushed total allotment for the 2037 bond to N476.84 billion, well above its original offer size.
The bond, which has a remaining tenor of 10 years and 11 months, recorded bid rates between 14.00% and 18.49%, with a marginal rate of 17.04%.
Successful bids for both instruments were ultimately allotted at marginal rates of 17.00% and 17.04% respectively, while coupon rates remained unchanged.
The strong demand underscores continued investor confidence in Federal Government securities despite evolving interest rate dynamics in the domestic economy.
The May auction is part of a series of regular bond issuances conducted by the DMO to finance budget deficits and support government spending obligations.
In recent months, Nigeria’s bond market has witnessed fluctuating demand patterns, with previous auctions recording significant oversubscriptions, particularly for long-dated instruments.
In January 2026, total allotments reached N1.54 trillion, driven by heavy demand across re-opened bonds, including the JAN 2035 instrument.
By February 2026, issuance size moderated to N800 billion as yields eased slightly, while April’s N700 billion auction continued the trend of re-opening existing benchmark bonds.
FGN bonds remain a key domestic borrowing tool for the Federal Government, attracting pension funds, banks, and asset managers seeking relatively secure fixed-income investments.
Market participants are now closely watching inflation trends and Central Bank policy direction, which are expected to influence yield movements in subsequent auctions.
