FG Raises ₦748.64bn Through FGN Bond Auction

FG raises ₦748.64bn through its latest FGN bond auction, with investors submitting bids worth ₦1.49 trillion for the two securities offered by the Debt Management Office (DMO). The September 2026 auction involved a new 10-year FGN bond maturing in September 2036 and the reopening of the 15-year FGN June 2038 bond. The government had offered a combined ₦1 trillion through the auction.

Investors Submit ₦1.49tn in Bids

The latest result means FG raises ₦748.64bn from the auction, despite offering ₦1 trillion in bonds. For the 10-year bond, the DMO received ₦546.90 billion in bids against the ₦400 billion offered. It eventually allotted ₦288.83 billion at a marginal rate of 16.79 per cent. The 15-year bond attracted even stronger demand, receiving ₦947.83 billion in bids against the ₦600 billion offered. The DMO allotted ₦460.01 billion at a marginal rate of 16.85 per cent.

Borrowing Rates Show Signs of Easing

The latest auction also recorded a decline in the marginal rate for the reopened 15-year bond. Its rate fell to 16.85 per cent, compared with 17.79 per cent at the previous auction. The result comes as the Federal Government continues to rely on the domestic debt market to raise funds for its fiscal requirements. The strong level of subscriptions shows continued demand for government securities, although the DMO allotted less than the total amount investors offered. According to the DMO, the September auction results are part of its ongoing debt management efforts. They also support the Federal Government’s domestic borrowing programme. The strong demand also highlights investor interest in FGN securities. Investors often consider government bonds for their relatively predictable returns and sovereign backing. The latest auction therefore provides another indication of activity in Nigeria’s domestic debt market. The auction also reflects the government’s continued use of bonds to finance its spending needs. FGN bonds provide the government with funds while giving investors an opportunity to earn returns over the maturity period. The level of demand recorded at the auction highlights the continued role of the domestic debt market in government financing.