By Seun Ibiyemi
The Federal Government allotted N7.15 trillion worth of FGN bonds between January and September 2026, representing a 106 per cent increase from the N3.48 trillion allotted during the corresponding period in 2025.
An analysis of monthly auction results released by the Debt Management Office (DMO) showed that the sharp increase was driven largely by higher bond allotments recorded in January, June, July, August and September.
The development highlights the Federal Government’s continued reliance on the domestic debt market to finance its activities, with FGN bonds remaining the dominant component of its domestic debt portfolio.
June recorded the most significant year-on-year increase in bond allotments, with the DMO allotting N1.22 trillion, compared with N100 billion in the same month of 2025.
January also recorded a substantial increase, with allotments rising to N1.54 trillion from N601.04 billion, representing a 157 per cent increase.
In July, allotments jumped by 401 per cent, from N185.93 billion in 2025 to N931.82 billion in 2026.
August recorded an even sharper increase of 491 per cent, as allotments rose from N136.16 billion in 2025 to N805.16 billion in 2026.
September allotments stood at N748.64 billion, representing a 29.8 per cent increase from the N576.62 billion recorded in the corresponding month of 2025.
The increases recorded in these months more than offset declines in February and April, when allotments fell by 42.4 per cent and 30.4 per cent, respectively.
Despite the sharp increase in government bond allotments, investor demand remained significantly higher, with total subscriptions reaching N13.72 trillion during the nine-month period.
February recorded the highest subscription at N2.70 trillion, accounting for 19.7 per cent of total subscriptions.
January followed with N2.25 trillion, representing 16.4 per cent of the total.
March attracted N1.50 trillion, while subscriptions stood at N1.41 trillion in June, N1.70 trillion in July, N1.35 trillion in August and N1.36 trillion in September.
The wide gap between the N13.72 trillion subscribed and N7.15 trillion allotted indicates that investors sought to purchase substantially more government securities than the amount offered at the auctions.
The DMO’s data also showed that FGN bonds remained the largest component of the Federal Government’s domestic debt portfolio.
The outstanding value of FGN bonds stood at N64.84 trillion, representing 74.53 per cent of total FGN domestic debt.
FGN Naira bonds accounted for N41.47 trillion, while securitised Ways and Means advances stood at N22.11 trillion.
The outstanding FGN domestic US dollar bond was valued at N1.27 trillion after conversion using the June 30 exchange rate.
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Nigerian Treasury Bills accounted for N19.48 trillion, representing 22.39 per cent of domestic debt.
FGN Sukuk stood at N1.19 trillion, while FGN savings bonds amounted to N122.45 billion.
The Federal Government’s green bond stock stood at N47.36 billion, while promissory notes totalled N1.22 trillion.
The promissory notes comprised N206.82 billion in naira-denominated instruments and N1.01 trillion in foreign-currency-denominated notes.
The DMO also reported N100 billion under other instruments, specifically UFTF FGN securities.
The surge in FGN bond allotments comes against the backdrop of a broader increase in Nigeria’s public debt stock.
According to previously released DMO data, total public debt stood at N159.35 trillion as of March 31, 2026, compared with N159.28 trillion at the end of December 2025.
The figure was substantially higher than the N87.38 trillion total public debt recorded as of June 30, 2023.
Between December 2023 and December 2025, Nigeria’s external debt increased from $42.49 billion to $51.86 billion, while domestic debt rose from N59.1 trillion to N89.4 trillion.
The latest bond auction figures underscore the Federal Government’s continued dependence on the domestic capital market as a major source of financing, while the strong subscription levels also point to sustained demand for government securities among investors.
