DMO Allocates N1.54 Trillion in January Bond Auction, Exceeding N900 Billion Target

The Federal Government of Nigeria (FGN) has successfully allotted N1.54 trillion during its bond auction for January 2026, exceeding the initially specified N900 billion.

Analysts suggest that this allocation indicates ongoing investor confidence in government securities in a challenging high-interest-rate environment.

The Debt Management Office (DMO) disclosed these figures following the auction conducted on January 26, 2026, which involved reopening three existing FGN bond instruments.

A strong demand from investors across all maturity periods resulted in total subscriptions and allotments significantly surpassing the set offer size, showcasing the continuing appeal of FGN bonds and current yields. Settlement for all accepted bids is set for January 28, 2026.

According to the DMO, all three bonds available for bid experienced notable oversubscription, particularly with the longer-term instruments drawing substantial interest despite the wide range of bids.

One of the offerings, the 18.50 percent FGN bond maturing in February 2031, had N300 billion available but attracted bids totaling N514.45 billion from 124 submissions, with N398.19 billion allotted, including N17.50 billion in non-competitive allocations.

Another bond, the 19.00 percent FGN bond due in February 2034, saw subscriptions totaling around N1.01 trillion against an offer of N400 billion, with N576.33 billion allotted, including N113.22 billion allocated on a non- competitive basis.

Lastly, the 22.60 percent FGN bond maturing in January 2035 recorded subscriptions of N731.40 billion for an offer size of N200 billion, culminating in a total allotment of N570.16 billion drawn from 176 successful bids.

Overall, the marginal rates for the three bonds fell within a tight range of 17.50% to 17.62%, even though bids extended as high as 25.90% for the longest- dated instrument.

The DMO emphasized that while allotments occurred at these marginal rates, the original coupon rates of 18.50%, 19.00%, and 22.60% would be preserved throughout the lifespan of the respective bonds.