MORGANABLE BUSINESS / MARKETS
Nigeria’s Debt Management Office (DMO) plans to offer Federal Government bonds worth ₦5.75 trillion in the fourth quarter of 2026.
Akure —
Debt Management Office (DMO) plans to offer Federal Government bonds worth ₦5.75 trillion in the fourth quarter of 2026.
The proposed sales would take place between October and December, according to the office’s provisional issuance calendar published on October 12.
The plan includes ₦1.75 trillion in bond offers in October, followed by ₦2 trillion in November and another ₦2 trillion in December.
However, these figures represent the value of bonds the government intends to offer, not money it has already raised. The final amounts may differ because the calendar remains provisional and subject to change.
DMO SETS OUT THE Q4 SCHEDULE
The October auction is expected to offer ₦1.75 trillion across three existing Federal Government of Nigeria (FGN) bonds.
The November and December auctions are each scheduled to offer ₦2 trillion. Together, the three planned sales add up to ₦5.75 trillion.
The first instrument is the FGN February 2034 bond, which carries a coupon rate of 19 per cent. The DMO plans to offer ₦500 billion of this bond at each of the three auctions. As a result, the planned total for this instrument is ₦1.5 trillion.
The second instrument is the FGN September 2036 bond, with a coupon rate of 16.79 per cent. The proposed offer is ₦800 billion in October, followed by ₦1 trillion in November and another ₦1 trillion in December. This brings the planned total for the bond to ₦2.8 trillion.
The third instrument is the FGN June 2038 bond, which carries a 15.45 per cent coupon rate. The DMO plans to offer ₦450 billion in October and ₦500 billion in each of the following two months. Therefore, the total planned offer for this bond is ₦1.45 trillion.
BOND ALLOTMENTS HAVE RISEN SHARPLY
The Q4 plan follows a significant increase in bond allotments during the first nine months of 2026. The Federal Government allotted ₦7.15 trillion in FGN bonds between January and September, compared with ₦3.48 trillion during the same period in 2025.
In January, bond allotments reached ₦1.54 trillion, up from ₦601.04 billion a year earlier. June allotments rose to ₦1.22 trillion, compared with ₦100 billion in June 2025.
The upward trend continued in parts of the third quarter. July allotments increased to ₦931.82 billion from ₦185.93 billion in the same month of 2025. In August, allotments reached ₦805.16 billion, compared with ₦136.16 billion a year earlier.
September also recorded higher allotments, rising to ₦748.64 billion from ₦576.62 billion in September 2025. However, the DMO’s reported figures showed year-on-year declines in February and April, of 42.4 per cent and 30.4 per cent respectively. The overall increase therefore reflects different outcomes across the months.
PUBLIC DEBT AND INTEREST COSTS
The planned bond sales come as Nigeria’s public debt remains under scrutiny. Figures cited in recent reports put the country’s total public debt at ₦166.79 trillion at the end of June 2026, compared with ₦159.35 trillion at the end of March.
Domestic debt accounted for ₦91.59 trillion, or 54.91 per cent of the total. The Q4 bond programme would form part of the government’s domestic financing activity.
However, the effect on total debt will depend on the amount actually raised, repayments and other changes in the government’s debt position.
Nevertheless, borrowing also creates future obligations. Interest payments compete with other spending priorities, while principal repayments must be managed when bonds mature.
Therefore, the cost and purpose of borrowing matter alongside the headline amount offered at auction.
The planned ₦5.75 trillion should not be treated as an automatic ₦5.75 trillion increase in public debt. The figure represents planned offers, and the amount ultimately allotted may be different.
Debt totals can also change because of repayments, exchange-rate movements and other financing activities.
WHAT INVESTORS WILL WATCH
Investors are likely to focus on demand at each auction, the amount the DMO accepts and the yields attached to successful bids.
Inflation expectations, monetary policy and returns available on other investments can all influence demand for government securities.
A bond’s yield also depends on the price paid and the cash flows remaining until maturity. Consequently, investors will consider both the bond’s stated coupon and the price at which they can buy it.
Market interest rates can also affect bond prices. When yields on new securities rise, existing fixed-rate bonds may become less attractive unless their prices adjust. Conversely, expectations of lower rates can support demand for existing bonds with relatively high coupons.
The November and December offers account for ₦4 trillion of the planned quarterly total, or about 69.6 per cent. Their results will therefore provide an important indication of demand during the final two months of the year.
PROVISIONAL PLAN, NOT FINAL BORROWING
The DMO’s calendar provides investors with a timetable, but it does not guarantee that every auction will proceed at the planned size. The office has stated that the calendar is provisional and may change at short notice. Any revised dates or offer amounts should be checked against the DMO’s official notices.
The distinction between offers, subscriptions and allotments is also important.
An offer is the amount made available for investors to buy. Subscriptions represent bids received, while allotments show how much the issuer accepts.
These figures can differ, depending on investor demand and the DMO’s decisions.
The October auction will be the first test of demand under the schedule, followed by the November and December sales.
Overall, the DMO’s proposed ₦5.75 trillion in fourth-quarter bond offers follows ₦7.15 trillion in allotments during the first nine months of 2026.
Investors should consult the DMO’s official calendar, offer circulars and published results for the latest information as the quarter progresses.
