Nigeria’s January 2026 bond auction demonstrated strong investor confidence, with allotments reaching ₦1.54 trillion.
The Debt Management Office (DMO) opened the auction on January 26, offering three existing bonds.
Strong Bond Demand Surpasses Offer
Immediately, investors exceeded the ₦900 billion offer, showing confidence in government securities and prevailing yields.
Consequently, settlement for successful bids is scheduled for January 28, 2026, following the oversubscribed auction.
Longer Bonds Attract Heavy Bids
Notably, longer-term bonds attracted particularly strong interest despite market uncertainty and wide bid ranges.
For example, the 18.50% FGN February 2031 bond offered ₦300 billion but drew ₦514.45 billion in bids.
Therefore, the DMO allotted ₦398.19 billion, including ₦17.50 billion for non-competitive investors.
Meanwhile, the 19.00% FGN February 2034 bond had ₦400 billion on offer and received about ₦1.01 trillion in bids.
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The DMO allotted ₦576.33 billion, including ₦113.22 billion to non-competitive investors.
Similarly, the 22.60% FGN January 2035 bond drew ₦731.40 billion in bids for a ₦200 billion offer.
As a result, total allotment reached ₦570.16 billion from 176 successful submissions.
Margins And Rates Hold Investor Confidence
Marginal rates settled between 17.50% and 17.62%, staying below original coupon rates despite wide bid ranges.
Moreover, investors chose to lock in longer tenors, confident in returns despite high interest rates.
Specifically, the February 2031 bond (5 years remaining) cleared at 17.62%, with bids ranging 15.85–18.50%.
The February 2034 bond (8 years remaining) cleared at 17.50%, with bids ranging 16.00–19.40%.
The January 2035 bond (9 years remaining) cleared at 17.52%, with bids ranging 16.00–25.90%.
The DMO confirmed that the original coupon rates remain fixed for the bonds’ entire lifetimes.
Previously, the December 2025 auction raised ₦596.465 billion, exceeding the ₦460 billion on offer.
Additionally, the January 2025 auction raised ₦669.94 billion, showing strong demand early in the year.
Overall, total FGN bond allotments for 2025 reached about ₦5.12 trillion, demonstrating enduring investor confidence.
FGN auctions remain central to domestic borrowing and serve as benchmarks for other fixed-income instruments.
Ultimately, the January oversubscription confirmed investors’ willingness to commit to long-term bonds despite macroeconomic uncertainty.
