The Federal Government raised N748.64bn from its September 2026 domestic bond auction, with investors submitting almost N1.5tn in bids for the two securities offered by the Debt Management Office.
The auction featured a new 10-year Federal Government of Nigeria bond maturing in September 2036 and a reopening of the 15-year bond maturing in June 2038.
The DMO offered a combined N1tn across the two instruments.
For the new 10-year bond, investors submitted N546.90bn in bids against the N400bn offered.
The debt office allotted N288.63bn at a marginal rate of 16.79 per cent.
Demand for the instrument was therefore about 37 per cent above the amount offered, although the DMO accepted significantly less than the total bids received.
The reopened 15-year bond attracted stronger demand, with investors submitting N947.83bn against the N600bn offered.
The DMO allotted N460.01bn at a marginal rate of 16.85 per cent.
The rate represented a sharp decline from the 17.79 per cent marginal rate recorded for the same bond at the previous auction in August.
Across the two securities, total subscriptions stood at about N1.49tn, compared with the N1tn offered by the DMO.
The result means the debt office allotted N748.64bn through the competitive auction, leaving a substantial portion of the bids unaccepted.
The September auction also differed from the previous month’s exercise, which featured three instruments and produced N805.16bn in competitive allotments.
The strongest movement in September came from the reopened June 2038 bond, whose marginal rate fell by 94 basis points from August’s 17.79 per cent.
The comparison is more direct for the 2038 bond because it was previously offered by the DMO. The 10-year September 2036 instrument was newly issued, making a direct month-on-month yield comparison less straightforward.
The auction outcome comes as the Federal Government continues to rely on the domestic debt market to meet part of its financing requirements.
The latest figures also provide a fresh reference point for participants in Nigeria’s fixed-income market, where government securities play an important role in determining pricing for other naira-denominated debt instruments.
With investors bidding significantly above the amounts offered on both securities, the auction showed continued demand for longer-dated government debt. At the same time, the DMO’s decision to allot less than the total amount sought resulted in lower clearing rates on the securities.
The September auction will consequently remain relevant to investors monitoring the direction of bond yields and the government’s domestic borrowing costs in the coming weeks.
