The Federal Government allotted N7.15 trillion worth of FGN bonds between January and September 2026, representing a 106 per cent increase compared with the N3.48 trillion allotted during the corresponding period in 2025.
An analysis of monthly auction results released by the Debt Management Office (DMO) showed that the sharp increase was driven largely by higher allotments recorded in January, June, July, August and September.
The development highlights the Federal Government’s continued reliance on domestic borrowing to finance its activities, with FGN bonds accounting for the largest share of its domestic debt portfolio.
June records highest surge
The most significant year-on-year increase was recorded in June, when the DMO allotted N1.22 trillion in FGN bonds, compared with N100 billion in the same month of 2025.
January allotments also rose substantially, climbing to N1.54 trillion from N601.04 billion, representing a 157 per cent increase.
In July, the amount allotted increased by 401 per cent, from N185.93 billion in 2025 to N931.82 billion in 2026, while August recorded a 491 per cent increase, rising from N136.16 billion to N805.16 billion.
September allotments stood at N748.64 billion, up 29.8 per cent from the N576.62 billion recorded in September 2025.
The increases in these months more than offset declines recorded in February and April, when bond allotments fell by 42.4 per cent and 30.4 per cent, respectively.
Investors subscribe N13.72trn
Despite the substantial increase in allotments, investor demand was considerably higher, with total subscriptions reaching N13.72 trillion during the nine-month period.
February recorded the highest subscription at N2.70 trillion, accounting for 19.7 per cent of total subscriptions, while January followed with N2.25 trillion, representing 16.4 per cent.
March attracted N1.50 trillion, while June, July, August and September recorded N1.41 trillion, N1.70 trillion, N1.35 trillion and N1.36 trillion, respectively.
The wide gap between total subscriptions and allotments indicates that investors sought to purchase significantly more government bonds than the amount ultimately offered by the DMO at the auctions.
FGN bonds dominate domestic debt
The DMO’s data also showed that FGN bonds remained the largest component of the Federal Government’s domestic debt portfolio, with an outstanding value of N64.84 trillion, representing 74.53 per cent of total FGN domestic debt.
FGN Naira bonds accounted for N41.47 trillion, while securitised Ways and Means advances stood at N22.11 trillion.
The outstanding FGN domestic US dollar bond was valued at N1.27 trillion after conversion using the June 30 exchange rate.
Nigerian Treasury Bills accounted for N19.48 trillion, representing 22.39 per cent of domestic debt, while FGN Sukuk stood at N1.19 trillion and FGN savings bonds amounted to N122.45 billion.
The Federal Government’s green bond stock stood at N47.36 billion, while promissory notes totalled N1.22 trillion.
The promissory notes comprised N206.82 billion in naira-denominated instruments and N1.01 trillion in foreign-currency-denominated notes. The DMO also reported N100 billion under other instruments, specifically UFTF FGN securities.
Public debt continues to rise
The latest bond figures come amid a broader increase in Nigeria’s public debt.
According to previously released DMO data, total public debt stood at N159.35 trillion as of March 31, 2026, compared with N159.28 trillion at the end of December 2025.
The DMO had also reported that Nigeria’s total public debt stood at N87.38 trillion as of June 30, 2023.
Between December 2023 and December 2025, Nigeria’s external debt rose from $42.49 billion to $51.86 billion, while domestic debt increased from N59.1 trillion to N89.4 trillion.
The rising bond issuance underscores the Federal Government’s continued use of the domestic debt market as a major source of financing, while also reflecting the scale of investor demand for government securities.
