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By Ayo Kehinde
The Debt Management Office (DMO) has unveiled plans to raise ₦4 trillion through Federal Government of Nigeria (FGN) bond auctions in the third quarter of 2026 as it continues to finance the country’s growing budget deficit and refinance maturing debt obligations.
According to the provisional FGN third quarter 2026 bond issuance calendar released on June 29, the DMO will conduct bond auctions on July 20, August 17 and September 14. The program will involve the reopening of three existing bond instruments rather than new issues.
The July auction will offer bonds at 22.60% FGN January 2035, 16.2499% FGN April 2037 and 15.45% FGN June 2038, with offering sizes ranging from ₦400 billion to ₦600 billion for each instrument. The August and September auctions will only include January 2035 and June 2038 bonds, with offering sizes increasing to between ₦600 billion and ₦800 billion per bond.
Based on the lower end of the supply ranges, the DMO expects to raise around ₦4 trillion during the quarter.
The continued reopening of existing bonds reflects the agency’s strategy of increasing liquidity in benchmark securities rather than introducing new instruments. Market analysts say the approach improves price discovery, increases secondary market liquidity and supports more efficient trading.
Okwudili Ijezie & Co. founder Blakey Ijezie said the larger size of the offering suggests the DMO expects strong demand from investors amid attractive yields in the domestic debt market. Meanwhile, David Adonri, managing director at Highcap Securities, said the issuance timetable points to sustained government borrowing and could keep bond yields high as the government competes with private issuers for investment funds.
The bond program is in line with the federal government’s expanded 2026 borrowing plan of ₦29.2 trillion and underlines its strategy of extending debt maturities through medium- and long-term securities, while reducing refinancing risks.
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