The Federal Government of Nigeria has opened subscriptions for a ₦750 billion bond issuance for March 2026, as it continues to rely on domestic borrowing amid persistently high interest rates and fiscal pressures.
According to details released by the Debt Management Office (DMO), the offer consists of three reopened Federal Government of Nigeria
(FGN) bonds:₦250 billion – 17.945% FGN August 2030 bond ₦200 billion – 17.95% FGN June 2032 bond ₦300 billion – 19.89% FGN May 2033 bond
The bonds will be sold through an auction scheduled for March 30, 2026, with settlement expected on April 1, 2026. Investors will bid based on yield-to-maturity, while coupon rates remain fixed due to the re-opening structure of the instruments.
The March offer represents a slight reduction from the ₦800 billion issued in February, signaling a more calibrated borrowing approach.
This adjustment is linked to improving liquidity conditions, supported partly by rising oil prices, and ongoing efforts to manage increasing debt servicing costs.
Despite the marginal reduction, the continued high yields ranging between 17.9% and 19.9% reflect Nigeria’s elevated interest rate environment.
Analysts attribute this to persistent inflationary pressures, currency risks, and tighter monetary conditions, which have kept borrowing costs significantly above pre-pandemic levels.
The bond issuance underscores the government’s sustained dependence on the domestic debt market to finance budget deficits and refinance maturing obligations.
With Nigeria’s public debt burden rising and debt service consuming a large share of revenue, the cost of borrowing remains a critical concern for fiscal sustainability.
Overall, the offering presents a mixed outlook: while high yields may attract investors seeking returns, they also highlight underlying macroeconomic challenges facing the country.
Source : Nairametrics
