DMO Raises ₦614.5bn Through May 2026 FGN Bond Auction

The Debt Management Office has allotted a total of N614.5 billion across two reopened instruments in the May 2026 Federal Government bond auction. 

The result was released by the Office on Tuesday.

The Federal Government offered two instruments during the auction held on May 18, 2026 — the 22.60% FGN JAN 2035 bond and the 16.2499% FGN APR 2037 bond — with each instrument carrying an initial offer size of N300 billion.

Settlement for both bonds has been scheduled for May 20, 2026.

The auction outcome showed stronger investor interest in the longer-dated APR 2037 bond, which attracted substantial non-competitive bids and accounted for the larger share of total allotments.

The 22.60% FGN JAN 2035 bond recorded total subscriptions of N262.23 billion from 130 investor bids, out of which 79 bids were successful.

While the DMO allotted N137.67 billion on the JAN 2035 bond, the instrument has a remaining tenor of 8 years and 8 months, and the bid rates ranged between 15.00% and 22.60%, while the marginal rate settled at 17.00%.

The DMO confirmed that successful bids for the bond were allotted at the marginal rate of 17.00%, while the original coupon of 22.60% remains unchanged.

Investor demand was stronger for the 16.2499% FGN APR 2037 bond, which drew significant participation from institutional investors.

The instrument received 135 bids, with 96 bids accepted by the DMO. Total subscriptions stood at N253.94 billion, alongside N280 billion in non-competitive bids, and total allotment on the bond reached N476.84 billion, significantly above the original offer size.

The APR 2037 bond, which has a remaining tenor of 10 years and 11 months, recorded bid rates ranging from 14.00% to 18.49%, while the marginal rate closed at 17.04%.

Successful bids for both instruments were allotted at marginal rates of 17.00% and 17.04%, respectively.

Despite the allotment rates, the original coupon rates of 22.60% for the JAN 2035 bond and 16.2499% for the APR 2037 bond remain unchanged.

FGN bond auctions remain one of the Federal Government’s key mechanisms for financing budget deficits and supporting public spending obligations.