Nigeria's March 2026 FGN Bond Auction Sees 4% Oversubscription

Nigeria's March 2026 Federal Government bond auction recorded robust investor demand, with total subscriptions exceeding the initial offer by 4.28 per cent, according to a statement released on Tuesday, March 31, by the Debt Management Office. This outcome underscores sustained investor confidence in Nigerian sovereign debt, even as the government moderated allotments compared to previous months.

Strong Investor Demand Despite Lower Allotments

Investors submitted bids totalling N931.5 billion for bonds initially offered at N750 billion. However, total allotments stood at N485.49 billion, representing a 7.4 per cent decline from the N524.28 billion allocated in February. This moderation in allotments reflects strategic adjustments by the government while maintaining strong market interest.

Instruments Offered and Subscription Details

Three instruments were offered during the auction: the 17.945% FGN AUG 2030 (5-year reopening) with N250 billion on offer; the 17.95% FGN JUN 2032 (7-year reopening) with N200 billion; and the 19.89% FGN MAY 2033 (9-year reopening) with N300 billion.

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Investor appetite was strongest for the 9-year MAY 2033 bond, which attracted N462.21 billion in bids from 154 successful applicants. This instrument also accounted for the bulk of allotments, receiving N332.71 billion. The AUG 2030 bond recorded subscriptions of N88.79 billion, while the JUN 2032 bond attracted N63.99 billion.

Clearing Yields and Pricing Ranges

Clearing yields for the instruments were set at 16 per cent for the AUG 2030 bond, 16.15 per cent for the JUN 2032 bond, and 16.64 per cent for the MAY 2033 bond. During the auction, pricing ranged between 14.8 per cent and 17 per cent for the AUG 2030 bond, 15 per cent to 17.95 per cent for the JUN 2032 bond, and 14 per cent to 19.89 per cent for the MAY 2033 bond.

The auction results highlight the continued attractiveness of Nigerian government securities to investors, driven by competitive yields and stable economic indicators. The Debt Management Office's management of the auction process ensures efficient capital raising for national development projects.