FGN bonds record 32% oversubscription in May auction

By Elizabeth Adegbesan

Strong investors demand for the Federal Government of Nigeria (FGN) debt instrument continues in May as the government’s bond auction in May 2026 recorded a 32.8% oversubscription.

The Debt Management Office (DMO) disclosed this today.

Investors bid N797.17 billion (including a N280 billion non-competitive bid) for bonds worth N600 billion with total allotments rising sharply by 122 percent to N614.51 billion in May, down from N276.8 billion in April.
Two instruments were offered during the auction consisting 22.6 % FGN JAN 2035 (10-year reopening) with N300 billion offered and 16.25 percent FGN APRIL 2037 (20-year reopening) with N300 billion offered.

Investor interest was strongest for the 20-year April 2037 bond, which attracted N533.94 billion in bids from 96 successful applicants.
The bulk of allotments also went to this bond, totaling N476.84 billion.
The JAN 2035 bond received N137.67 billion.
Clearing yields for the bonds were as follows: JAN 2035: 17 percent and APRIL 2037 at 17.04 percent.
During the auction, the bonds were priced within these ranges: JAN 2035: 15 percent – 22.6 percent and 14 percent – 18.49 percent for the APRIL 2037 bond.
The results reflect growing appetite among investors for Nigerian government debt, even as allotments tightened compared with previous months.

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