DMO Unveils Nearly N4tn FGN Bond Auction Plan For Q3 2026 To Finance Budget Deficit
The Debt Management Office plans to raise about N4 trillion through reopened FGN bond auctions in the third quarter of 2026.
The Debt Management Office plans to raise about N4 trillion through reopened FGN bond auctions in the third quarter of 2026.
The Debt Management Office (DMO) has unveiled a provisional Federal Government of Nigeria (FGN) Bond Issuance Calendar for the third quarter of 2026, with planned bond auctions worth about N4 trillion aimed at financing the government’s budget deficit and refinancing maturing debt obligations.
The issuance calendar, obtained by Nairametrics on Monday, outlines three auction dates scheduled for July 20, August 17, and September 14, 2026. Rather than introducing new debt instruments, the DMO will reopen three existing FGN bonds, a strategy analysts say is designed to deepen liquidity and strengthen price discovery in the domestic bond market.
According to the calendar, which is marked provisional and subject to change at short notice, the July 20 auction will feature three reopened bonds: the 22.60% FGN JAN 2035, 16.2499% FGN APR 2037, and 15.45% FGN JUN 2038.
The 22.60% FGN JAN 2035 bond, which will have a remaining maturity of eight years and six months at the time of the auction, will be offered in the range of N500 billion to N600 billion.
The 16.2499% FGN APR 2037 bond, with a remaining tenor of 10 years and nine months, will carry an offer size of N400 billion to N500 billion.
Meanwhile, the 15.45% FGN JUN 2038 bond, which will have 11 years and 11 months left to maturity, will also be reopened as part of the July offering.
For the August 17 auction, the DMO will drop the April 2037 bond from the programme, retaining only the January 2035 and June 2038 instruments. Offer sizes for both bonds will increase significantly to between N600 billion and N800 billion each.
The same two-bond structure and offer range will be maintained during the September 14 auction.
Based on the lower end of the offer ranges disclosed, the DMO plans to raise approximately N4 trillion across the three auctions during the quarter.
The calendar indicates a continued preference for medium- and long-term debt instruments, with no short-tenor bonds included in the programme. Auction dates are spaced roughly four weeks apart, maintaining the DMO’s established monthly issuance pattern.
Market analysts said the reopening strategy demonstrates the DMO’s focus on consolidating liquidity in existing benchmark bonds instead of introducing new series.
Chief Blakey Ijezie, founder of Okwudili Ijezie & Co., said the approach would strengthen the domestic bond market.
“Reopening these three bonds consolidates liquidity and improves price discovery for investors,” Ijezie said.
He added that the progressively larger offer sizes suggest the DMO expects sustained investor demand.
“The widening offer sizes from July to September suggest DMO expects strong demand due to elevated rates seen in recent primary market auctions, and the rates remain quite attractive,” he said.
According to Ijezie, investors generally favour reopened bonds because they provide more predictable liquidity in the secondary market.
Similarly, the Chief Executive Officer of Highcap Securities Limited, David Adonri, said the issuance calendar reflects the Federal Government’s continued aggressive borrowing plans.
“With N3.4 trillion potentially on offer, this remains an aggressive domestic borrowing programme for Q3,” Adonri said.
He warned that the government’s borrowing programme could keep market yields elevated.”Investors should expect yields to stay elevated as government competes for funds alongside corporate issuers,” he added.
Both analysts, however, noted that the issuance calendar remains provisional, meaning the actual amounts offered could change depending on prevailing market conditions.
The DMO issues FGN bonds primarily to finance the Federal Government’s budget deficits and refinance maturing debt. The Federal Government recently increased its planned borrowing for 2026 to N29.20 trillion following an expansion of the proposed budget and fiscal deficit.
The continued emphasis on bonds with maturities ranging between 10 and 20 years also reflects the government’s strategy of extending Nigeria’s debt maturity profile, thereby reducing refinancing risks by spreading repayment obligations over a longer period.
The Q3 2026 bond issuance programme underscores the DMO’s continued reliance on reopening benchmark securities to meet the Federal Government’s financing needs while deepening the domestic bond market.
