The Federal Government is set to raise N700 billion from the domestic bond market in April 2026, continuing a gradual reduction in its monthly borrowing size amid persistently high interest rates.
According to the April bond offer circular issued by the Debt Management Office (DMO), the auction is scheduled for April 27, with settlement expected on April 29. The issuance will be carried out through the re-opening of existing bonds across multiple maturities, a strategy aimed at boosting liquidity in benchmark securities.
The offer includes N300 billion of the 17.945% FGN August 2030 bond, N100 billion of the 17.95% FGN June 2032 bond, and N300 billion of the 22.60% FGN January 2035 bond. These instruments will be issued in units of N1,000, with a minimum subscription set at N50.001 million, largely targeting institutional investors such as pension funds, banks, and asset managers.
The DMO noted that the bonds qualify as liquid assets for banks and benefit from tax exemptions under existing regulations, factors that have continued to sustain investor interest.
A review of recent issuances shows a steady decline in the government’s borrowing target, from N900 billion in January to N800 billion in February, N750 billion in March, and now N700 billion in April. This trend reflects a cautious adjustment strategy rather than a major shift in fiscal direction.
The structure of the April issuance also underscores the current high-yield environment. While the five- and seven-year bonds carry interest rates of about 17.9%, the 10-year bond is priced significantly higher at 22.60%, indicating investor demand for stronger returns amid inflationary pressures and currency volatility.
Final yields will be determined at the auction, based on investors’ yield-to-maturity bids, along with accrued interest.
The elevated borrowing costs are closely tied to the tight monetary stance of the Central Bank of Nigeria (CBN), which has maintained high interest rates to combat inflation. This has, however, increased the government’s debt servicing burden.
Recent data from the DMO shows that Nigeria’s total debt service rose to about N16 trillion in 2025, up from N13.02 trillion in 2024, highlighting growing fiscal pressure as a larger share of public revenue is now devoted to servicing debt.
