Investors subscribed N13.72tn to FGN bond auctions between January and September, far exceeding the amount ultimately allotted…..
The Federal Government significantly increased its reliance on domestic bond financing in the first nine months of 2026, allocating N7.15tn through FGN bond auctions between January and September.
The figure represents a 106 per cent increase from the N3.48tn allotted during the corresponding period in 2025, according to an analysis of monthly auction results published by the Debt Management Office.
The sharp year-on-year increase was driven by substantial allotments recorded in several months, particularly January, June, July and August.
June posted the most notable jump, with the DMO allotting N1.22tn in FGN bonds, compared with N100bn in the same month of 2025.
January also recorded a significant increase, with allotments rising to N1.54tn from N601.04bn, representing a 157 per cent increase.
The upward trend continued in July, when the government allotted N931.82bn, compared with N185.93bn a year earlier, marking a 401 per cent rise.
August recorded an even larger year-on-year increase, with allotments climbing to N805.16bn from N136.16bn, representing a 491 per cent jump.
In September, the DMO allotted N748.64bn, up 29.8 per cent from the N576.62bn recorded in the corresponding month of 2025.
These increases more than offset declines recorded earlier in the year. February’s allotment fell by 42.4 per cent year-on-year, while April recorded a 30.4 per cent decline.
The sharp increase in government bond allotments came against the backdrop of substantial investor demand.
Data from the DMO showed that investors submitted subscriptions worth N13.72tn across FGN bond auctions between January and September, almost twice the amount ultimately allotted.
February recorded the highest monthly subscription at N2.70tn, accounting for 19.7 per cent of the nine-month total. January followed with N2.25tn, representing 16.4 per cent.
Investors subscribed N1.50tn in March, N1.41tn in June and N1.70tn in July.
August and September recorded subscriptions of N1.35tn and N1.36tn respectively.
The gap between the total amount investors offered and the value eventually allotted reflects the strong demand for the government’s debt instruments during the period.
The increased bond issuance comes as the Federal Government continues to use domestic debt instruments as a major source of financing.
FGN bonds remain the largest component of the government’s domestic debt portfolio.
As of June 30, 2026, Nigeria’s total public debt stood at N166.79tn, up from N159.35tn at the end of March, according to data from the Debt Management Office.
Domestic debt accounted for N91.59tn, representing 54.91 per cent of the total public debt stock.
Of the Federal Government’s domestic debt, FGN bonds accounted for N64.84tn, or 74.53 per cent, making them by far the largest instrument in the portfolio.
Other domestic debt instruments included FGN Sukuk worth N1.19tn, savings bonds valued at N122.45bn and green bonds amounting to N47.36bn. Promissory notes stood at N1.22tn.
The latest auction figures underline the growing role of FGN bonds in financing government requirements, with allotments in the first three quarters of 2026 already more than doubling the amount recorded during the same period last year.
The DMO had reported total public debt of N87.38tn as of June 30, 2023, shortly after President Bola Tinubu assumed office.
