2026: DMO targets $5.75 trillion in Q4 bond issuance

The Debt Management Office (DMO) plans to raise $5.75 trillion through Federal Government of Nigeria (FGN) bonds in the fourth quarter of 2026.

According to the provisional calendar, the auctions will be held on October 19, November 16 and December 14. The DMO will offer N1.75 trillion in October and N2 trillion in each of the following two months.

The offers are spread across three existing instruments. The September 2036 16.79% FGN bond represents the largest share at N2.8 trillion, made up of N800 billion in October and N1 trillion each in November and December.

It follows the June 2038 15.45% bond with 1.45 trillion naira, including 450 billion naira in October and 500 billion naira in each of the last two months. The 19.00% bond maturing in February 2034 will be offered at 500 billion naira per auction, or 1.5 trillion naira for the quarter.

The DMO warned that the timetable was provisional and could be revised at short notice.

The plan follows a sharp increase in allocations between January and September 2026, which reached 7.15 trillion naira, 106% higher than the 3.48 trillion naira in the same period in 2025. The fourth quarter target equates to about 80% of the nine-month total. If fully allocated, the bond issue for the year would reach about N12.9 trillion.

Monthly data show strong fluctuations. January allocations increased by 157% to N1.54 trillion from N601.04 billion. June reached $1,220 billion, up from $100 billion the previous year. July rose 401% to N931.82 billion, while August rose 491% to N805.16 billion.

September awards increased 29.8%. N748.64 billion from N576.62 billion. February and April recorded a counter-trend trend, falling by 42.4% and 30.4% respectively.

Analysts differ on the implications. Uche Uwaleke, professor and founding director of the Institute of Capital Market Studies, said domestic borrowing can finance government projects and offers an alternative when international borrowing is expensive.

“Government projects will also require financing. So instead of going to the International Monetary Fund for loans, the government can resort to domestic loans, which are cheaper,” he said.