By Seun Ibiyemi
The Federal Government, through the Debt Management Office (DMO), has opened subscriptions for N750 billion worth of Federal Government of Nigeria (FGN) bonds for March 2026, as it continues to tap the domestic debt market to finance fiscal needs.
According to details contained in the March bond offer circular, the issuance comprises three reopened instruments: N250 billion for the 17.945 per cent FGN August 2030 bond, N200 billion for the 17.95 per cent FGN June 2032 bond, and N300 billion for the 19.89 per cent FGN May 2033 bond.
The bonds will be auctioned on March 30, 2026, with settlement scheduled for April 1, 2026. As with previous issuances, the instruments will be sold via a yield-based auction system, while coupon rates remain fixed under the re-opening structure.
The latest offer reflects a slight reduction from the N800 billion raised in February, signalling what analysts describe as a more measured borrowing strategy by the government amid evolving market conditions.
In February, the DMO offered N400 billion for the 2032 bond, N300 billion for the 2033 bond, and N100 billion for the 2034 bond, bringing total issuance to N800 billion.
The marginal drop to N750 billion in March suggests efforts to balance borrowing needs with market realities, particularly as rising oil prices improve liquidity and authorities seek to contain debt service costs.
Analysts also note a shift in the composition of the instruments, with the March issuance focusing more on mid-tenor bonds, specifically the 2030 and 2032 maturities compared to February’s inclusion of a longer-tenor 2034 instrument.
This adjustment may help moderate upward pressure on yields, especially as sustained government borrowing continues to compete for liquidity in the domestic market.
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Despite the reduction in offer size, interest rates remain elevated, underscoring the high cost of domestic borrowing.
The March bonds carry coupon rates of 17.945 per cent for the 2030 instrument, 17.95 per cent for the 2032 bond, and 19.89 per cent for the 2033 bond largely unchanged from February levels.
The continued reliance on the bond market highlights ongoing fiscal pressures, with the government seeking to finance budget deficits and refinance maturing obligations while managing rising debt costs.
