Skip to main content

The Traffic NG

  • info@thetraffic.ng
  • 7 Nasir El Rufai Crescent, Guzape
THE TRAFFIC NG LOGO
THE TRAFFIC NG LOGO
ADVERTISE WITH US
bonds

The Federal Government aggressively expanded its borrowing footprint within the domestic capital market between January and September 2026, allotting a staggering N7.15 trillion in Federal Government of Nigeria (FGN) bonds.

According to an analysis of monthly auction results published by the Debt Management Office (DMO), total allotments surged by 106 percent compared to the N3.48 trillion recorded during the corresponding period in 2025.

This sharp upward trajectory highlights the federal administration’s heavy reliance on local securities to finance national fiscal obligations.

The exponential growth in total borrowing was propelled by exceptionally high allotments during specific months, easily offsetting more modest figures or temporary dips earlier in the year.

June registered the most dramatic year-on-year surge, with the DMO allotting N1.22 trillion in FGN bonds compared to just N100 billion in June 2025. January also witnessed massive capital mobilization, jumping 157 percent to N1.54 trillion from N601.04 billion year-on-year.

Subsequent quarters maintained a brisk pace. In July, the government allotted N931.82 billion, representing a 401 percent spike over the previous year’s N185.93 billion, while August followed closely with an allotment of N805.16 billion, representing a 491 percent increase.

READ ALSO: Oil Prices Fall As G7 Plans 100m-Barrel Reserve Release

September rounded out the third quarter with N748.64 billion allotted, up 29.8 percent from N576.62 billion in September 2025.

These massive inflows heavily outweighed weaker performances recorded in February and April, when bond allotments fell by 42.4 percent and 30.4 percent, respectively, relative to the prior year.

Despite the massive volume of government securities flooded onto the market, investor appetite remained exceptionally robust. Total subscriptions for FGN bonds reached a towering N13.72 trillion between January and September 2026, significantly outstripping the actual volume accepted by the government at auction.

February recorded the highest individual monthly subscription at N2.70 trillion, closely trailed by January at N2.25 trillion. Mid-year participation remained vibrant, with investors pitching N1.70 trillion in July, N1.50 trillion in March, and sustained bidding through June, August, and September hovering between N1.35 trillion and N1.41 trillion per month.

The wide gap between total bids submitted and amounts ultimately allotted indicates that the government exercised selective borrowing limits, even as institutional investors displayed profound liquidity and continued confidence in sovereign debt instruments.

The surge in bond issuance reinforces the dominant position of conventional FGN bonds within Nigeria’s wider debt structure.

Official figures show that as of June 30, 2026, Nigeria’s total public debt stood at N166.79 trillion. Domestic debt accounted for N91.59 trillion, representing 54.91 percent of the entire national debt stock. Within the federal domestic portfolio alone, FGN bonds commanded the lion’s share, boasting an outstanding value of N64.84 trillion, equivalent to 74.53 percent of total federal domestic obligations.

Other auxiliary instruments across the domestic portfolio included FGN Sukuk at N1.19 trillion, promissory notes at N1.22 trillion, savings bonds at N122.45 billion, and green bonds standing at N47.36 billion. As the federal administration navigates ongoing macroeconomic reforms, the domestic bond market remains the primary engine driving government capital mobilization.

The Traffic NG
bonds
Hibbatullah Shittu
The Traffic NG

Categories

Search
Recent Post
airlines
Nigerian Airlines Receive 749 Million Litres of
  • October 5, 2026
  • 4 min read
bonds
Federal Government Raises N7.15 Trillion Through Domestic
  • October 5, 2026
  • 3 min read
Small Businesses
How Small Businesses Are Turning to Community
  • October 5, 2026
  • 4 min read
    Featured Videos
    All Tags
    ADC AFCON Alhaji Atiku Abubakar Aliko Dangote Anthony Joshua APC Atiku Abubakar aviation CBN Court Customs Dangote EFCC FIFA First Lady First Lady Senator Oluremi Tinubu FRSC Gov. Hope Uzodimma Governor Hope Uzodimma INEC JAMB Lagos Lionel Messi NDLEA Nigeria NSC Nyesom Wike NYSC Oil PDP Peter Obi Police President Bola Ahmed Tinubu President Bola Tinubu Senate Senator Oluremi Tinubu sports Sunday Dare Super Eagles Taiwo Oyedele Tax Troops United Nigeria Airlines Vice President Kashim Shettima Victor Osimhen

    Related Posts

    airlines
    Business
    Nigerian Airlines Receive 749 Million Litres of Jet Fuel Amid Severe Supply Volatility
    Small Businesses
    Business
    How Small Businesses Are Turning to Community Ties to Boost Sales
    NMDPRA
    Business
    NMDPRA to Launch Digital Licensing Round for Gas Distribution Areas Before End of 2026
    Senator Abubakar Bagudu,
    Business
    Bagudu: Nigeria’s Development Needs Outpace Available Budget

    © 2025. All rights reserved  - Developed by ICS.