Investors Flood FG Bond Auction as July Subscriptions Hit ₦1.74tn

The Debt Management Office (DMO) recorded heavy investor demand during its July 2026 Federal Government bond auction, drawing total subscriptions of ₦1.74 trillion against the ₦1.2 trillion originally offered across three reopened instruments.

Official results released on Tuesday show that the auction was oversubscribed by approximately ₦538.66 billion, underscoring strong appetite for government debt securities.

The DMO offered ₦400 billion under each of the three reopened instruments: the January 2035, April 2037, and June 2038 bonds. Out of the ₦1.74 trillion submitted in total bids, the agency ultimately allotted ₦929.32 billion across the instruments.

Key highlights from the auction include:

16.2499% FGN APR 2037: Attracted the highest demand with 211 bids worth ₦665.19 billion. The DMO accepted 126 successful bids and allotted ₦381.46 billion at a marginal rate of 18.3500%.

22.60% FGN JAN 2035: Recorded 184 bids totaling ₦555.47 billion. A total of 90 bids were accepted, with ₦245.73 billion allotted at a marginal rate of 18.3400%.

 15.45% FGN JUN 2038: Received 161 bids valued at ₦518 billion. The agency accepted 92 bids, allotting ₦302.13 billion along with a ₦50 billion non-competitive bid at a marginal rate of 18.4000%.

Despite the varying marginal allotment rates, the original coupon rates of 22.60%, 16.2499%, and 15.45% will be maintained. Settlement for the newly allotted bonds is scheduled for July 22, 2026.

Federal Government bonds serve as long-term debt tools used by the DMO to finance key infrastructure projects and manage budget deficits, while offering fixed-income investors structured avenues for portfolio returns.