The Federal Government plans to raise N700bn from the domestic bond market in April 2026, continuing a gradual reduction in offer size as it navigates rising borrowing costs.
The plan was disclosed in a circular issued on April 22, 2026, by the Debt Management Office (DMO), which outlined details of the Federal Government of Nigeria Bond Offer for the month.
According to the circular, the auction is scheduled for April 27, 2026, with settlement expected on April 29, 2026.
The issuance will be executed through the re-opening of existing instruments across three maturities, a strategy aimed at boosting liquidity in benchmark securities.
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 issued 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 enjoy tax exemptions under existing laws, factors that continue to support investor demand.
Findings from recent issuances show that the April offer represents a continued decline in the government’s monthly borrowing target. The offer has reduced steadily from N900bn in January to N800bn in February, N750bn in March, and now N700bn in April, indicating a cautious adjustment rather than a shift in overall borrowing strategy.
In March, the government offered N750bn, comprising N250bn in a five-year bond, N200bn in a seven-year bond, and N300bn in a 10-year bond. The latest plan trims the total by N50bn and adjusts the maturity mix, with a notable reduction in the seven-year component.
The coupon structure for the April issuance highlights the prevailing high-yield environment. While the five-year and seven-year bonds carry rates of about 17.945 per cent and 17.95 per cent, the 10-year bond is priced significantly higher at 22.60 per cent.
Analysts say the elevated yields reflect investor demand for higher returns amid inflationary pressures, exchange rate volatility, and global economic uncertainty. Final yields will be determined at the auction, where successful bidders pay based on their yield-to-maturity bids alongside accrued interest.
The sustained high-interest-rate environment aligns with the tight monetary policy stance of the Central Bank of Nigeria, which has maintained elevated rates to curb inflation. This has continued to push up domestic borrowing costs and increase pressure on the government’s debt servicing obligations.
Recent data show that Nigeria’s total debt service rose to about N16tn in 2025, up from N13.02tn in 2024, underscoring mounting fiscal pressure as debt servicing consumes a growing share of government revenue.
