The Federal Government raised N5.08tn from the domestic bond market in the first six months of 2026, marking a 77.8 per cent increase from the N2.86tn raised during the corresponding period of 2025, an analysis of Debt Management Office auction results.
The increase came despite a decline in borrowing costs, with average marginal rates easing compared with last year, even as investor appetite remained strong, with subscriptions exceeding N9tn over the six-month period.
The DMO auction results showed that the Federal Government allotted N5.08tn worth of bonds between January and June 2026, compared with N2.86tn allotted during the same period in 2025, representing an increase of N2.22tn. The figures include both competitive and non-competitive allotments disclosed in the auction results.
The government also significantly increased the amount of bonds offered to investors during the review period. Between January and June 2026, it offered N4.95tn worth of bonds, compared with N1.85tn in the corresponding period of 2025. This represents an increase of N3.10tn, or 167.6 per cent, reflecting a more aggressive domestic borrowing programme.
Investor demand also strengthened in nominal terms. Total subscriptions rose to N9.04tn in the first half of 2026 from N4.37tn a year earlier, an increase of N4.67tn or about 107 per cent.
However, demand moderated when measured against the size of the government’s offer. While subscriptions were equivalent to 236.1 per cent of the amount offered in the first half of 2025, the ratio declined to 182.6 per cent in the corresponding period of 2026. This suggests that although investors committed substantially more money, the increase did not keep pace with the sharp expansion in borrowing requirements.
A further analysis of the auction data showed that investors submitted 2,823 bids across all bond auctions in the first six months of 2026, up from 1,621 bids in the corresponding period of 2025.
