The Federal Government of Nigeria significantly increased its borrowing through the domestic bond market in the first nine months of 2026, allotting N7.15tn worth of Federal Government of Nigeria bonds. This represents a 106 per cent increase compared with the N3.48tn allotted during the corresponding period of 2025. The sharp rise indicates a substantial increase in the volume of government securities allocated to investors as the Federal Government continues to utilise the domestic capital market to meet its financing requirements.
The growth in bond allotments was driven largely by exceptionally high allotments recorded in January, June, July and August. June recorded the most pronounced year-on-year increase during the period, with the Debt Management Office allotting N1.22tn in FGN bonds, compared with N100bn in the corresponding month of 2025. January also recorded a major increase, with allotments rising to N1.54tn from N601.04bn, representing a 157 per cent increase.
July and August also recorded substantial jumps in bond allotments. In July, the government allotted N931.82bn, compared with N185.93bn a year earlier, translating to a 401 per cent increase. August recorded another substantial jump, with allotments rising to N805.16bn from N136.16bn, an increase of 491 per cent. These increases more than offset declines recorded in some other months, such as February and April.
Despite weaker performances in February and April, when bond allotments fell by 42.4 per cent and 30.4 per cent, respectively, compared with the corresponding months of the previous year, the large increases recorded in other months pushed cumulative allotments more than twice above the 2025 level. The upward movement came amid substantial investor demand for government securities.
Total subscriptions for FGN bonds reached N13.72tn between January and September 2026, significantly exceeding the volume eventually allotted by the government. February recorded the highest subscription during the period at N2.70tn, followed by January with N2.25tn. Demand remained relatively strong during the middle and latter parts of the year.
The increased bond issuance comes as FGN bonds continue to dominate the Federal Government’s domestic debt structure. As of June 30, 2026, Nigeria’s total public debt stood at N166.79tn, while domestic debt accounted for N91.59tn, representing 54.91 per cent of the total debt stock. FGN bonds accounted for the largest portion of the Federal Government’s domestic debt.
FGN bonds accounted for N64.84tn, representing 74.53 per cent of the Federal Government’s domestic debt portfolio. Other domestic debt instruments included FGN Sukuk, savings bonds, green bonds and promissory notes, with FGN Sukuk accounting for N1.19tn, savings bonds at N122.45bn, green bonds at N47.36bn, and promissory notes at N1.22tn.
Key points
- The Federal Government allotted N7.15tn worth of bonds in the first nine months of 2026.
- The allotments represent a 106 per cent increase from the corresponding period of 2025.
- FGN bonds dominate the Federal Government’s domestic debt structure, accounting for 74.53 per cent of the domestic debt portfolio.
