DMO eyes N5.8tn from FGN bond sales in Q4

The Debt Management Office is planning to raise N5.75tn through the Federal Government of Nigeria  bond offers in the final three months of 2026, extending the government’s borrowing programme after bond allotments more than doubled in the first nine months of the year.

The proposed issuance, outlined in the DMO’s provisional calendar, will take place through

auctions scheduled for 19 October, 16 November and 14 December.

The government plans to offer N1.75tn in October, followed by N2tn in November and another

N2tn in December.

The planned sales come after the Federal Government allotted N7.15tn in bonds between January and September 2026, compared with N3.48tn in the corresponding period of 2025.

The latest borrowing plan will add to the government’s domestic financing activities as Nigeria’s

public debt continues to rise.

The Q4 programme will focus on three existing FGN bonds maturing in February 2034, September

2036 and June 2038.

The February 2034 bond, which carries a coupon of 19 per cent, will have N500bn offered at each of the three auctions.

This will bring the total planned issuance under the instrument to N1.5tn.The September 2036 bond, with a coupon of 16.79 per cent, will account for the largest share of the programme. The DMO plans to offer N800bn in October and N1tn each in November and December, amounting to N2.8tn over the quarter.

The June 2038 bond, which carries a 15.45 per cent coupon, will have N450bn offered in October and N500bn in each of the following two months. The planned total for this instrument is N1.45tn.

Together, the three instruments account for the full N5.75tn issuance target.

The DMO noted that the calendar is provisional and could be adjusted at short notice.

The proposed Q4 sales follow a significant increase in government bond allotments in the first three quarters of 2026.

Between January and September, the Federal Government allotted N7.15tn, representing a 106 per cent increase from the N3.48tn recorded during the same period last year.

January allotments rose 157 per cent  year-on-year to N1.54tn from N601.04bn, while June recorded N1.22tn, compared with N100bn in the same month of 2025.

Issuance also increased sharply in the third quarter. July allotments climbed 401 per cent to N931.82bn from N185.93bn a year earlier. August recorded a 491 per cent increase to N805.16bn from N136.16bn, while September allotments rose 29.8 per cent to N748.64bn from N576.62bn.

However, the upward trend was not uniform throughout the period. Allotments declined by 42.4 per cent in February and 30.4 per cent in April compared with their respective levels a year earlier.

The overall increase points to a much larger volume of funds being raised through domestic government securities in 2026.

The planned bond programme comes amid a rise in Nigeria’s total public debt.

The country’s public debt stock reached N166.79tn at the end of June 2026, up from N159.35tn at

the end of March.

Domestic debt accounted for N91.59tn, representing 54.91 per cent of the total.

The additional N5.75tn in planned Q4 bond offers would form part of the government’s broader domestic borrowing programme. However, the amount ultimately raised will depend on the outcome of the auctions and any changes to the provisional issuance calendar.

Source:https://punchng.com/dmo-eyes-n5-8tn-from-fgn-bond-sales-in-q4/