The Federal Government is set to raise N700bn from the domestic bond market in April 2026, continuing a gradual reduction in its monthly offer size as borrowing costs remain elevated.
According to the April 2026 Federal Government of Nigeria Bond Offer Circular released by the Debt Management Office, the auction will take place on April 27, with settlement scheduled for April 29.
The issuance will involve the re-opening of existing bonds across three maturities, a move designed to boost liquidity in benchmark securities.
Details in the circular show that the offer includes N300bn of the 17.945 per cent FGN August 2030 bond, N100bn of the 17.95 per cent FGN June 2032 bond, and N300bn of the 22.60 per cent FGN January 2035 bond.
The bonds will be sold in units of N1,000, with a minimum subscription of N50.001m, targeting institutional investors such as pension funds, banks, and asset managers.
The DMO noted that the instruments qualify as liquid assets for banks and are exempt from certain taxes under existing laws, factors that continue to sustain investor interest.
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An analysis of recent issuances shows a steady decline in the government’s monthly borrowing target. The offer has dropped from N900bn in January to N800bn in February, N750bn in March, and now N700bn in April, indicating a cautious adjustment rather than a major policy shift.
In March, the government raised N750bn through a mix of N250bn in a five-year bond, N200bn in a seven-year bond, and N300bn in a 10-year bond.
The April plan reduces the total size by N50bn and adjusts the maturity mix, with a notable cut in the seven-year segment.
The coupon rates for the April issuance underline the current high-yield environment. While the five-year and seven-year bonds carry rates of about 17.945 per cent and 17.95 per cent respectively, the 10-year bond is priced much higher at 22.60 per cent.
This marks a significant rise compared to similar long-term instruments offered in recent months, reflecting investor demand for stronger returns amid inflation concerns, exchange rate pressures, and global economic uncertainty.
However, final yields will be determined at the auction, where successful bidders will pay based on their yield-to-maturity bids along with accrued interest.
The persistent high-interest-rate environment mirrors the tight monetary policy of the Central Bank of Nigeria, which has kept rates elevated in a bid to control inflation. This has continued to drive up domestic borrowing costs and increase pressure on government debt servicing.
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Earlier reports indicated that Nigeria’s total debt servicing rose to about N16tn in 2025, based on data from the Debt Management Office.
This represents an increase of N2.98tn, or 22.9 per cent, from the N13.02tn recorded in 2024, underscoring mounting fiscal pressure as debt obligations consume a growing share of government revenue.
