The Federal Government's March 2026 bond auction saw investor demand exceed supply by 4.28%, with bids totaling N931.5 billion for N750 billion worth of debt instruments. The Debt Management Office disclosed the figures in a statement on Tuesday, showing that despite strong interest, total allotments dropped to N485.49 billion from N524.28 billion in February. Three bonds were offered: the 17.945% FGN AUG 2030, the 17.95% FGN JUN 2032, and the 19.89% FGN MAY 2033. The 9-year MAY 2033 bond drew the highest demand, with N462.21 billion in bids from 154 successful investors, and received N332.71 billion in allotments. The AUG 2030 bond attracted N88.79 billion in bids and N118.79 billion in allotments, while the JUN 2032 bond had N63.99 billion allotted against N180.5 billion in bids. Clearing yields stood at 16% for AUG 2030, 16.15% for JUN 2032, and 16.64% for MAY 2033. Pricing ranges during the auction were between 14.8%–17% for AUG 2030, 15%–17.95% for JUN 2032, and 14%–19.89% for MAY 2033.
The DMO's decision to allot less than half the total bids signals tighter fiscal control, even as investors line up for Nigerian debt. With the MAY 2033 bond pulling in over half the total bids, demand is clearly skewed toward longer-term instruments offering higher yields. This suggests investors are pricing in sustained inflation and currency risk, betting on long-dated paper to lock in current returns. For Nigerians, it means the government can still access cash, but at a cost that keeps borrowing expensive and future debt burdens high.
