Politics
DMO Targets ₦4trn In Q3 Bond Auctions To Finance Budget Deficit – THISAGE
By Ayo Kehinde
The Debt Management Office (DMO) has unveiled plans to raise ₦4 trillion through Federal Government of Nigeria (FGN) bond auctions in the third quarter of 2026 as it continues to finance the country’s widening budget deficit and refinance maturing debt obligations.
According to the provisional Q3 2026 FGN Bond Issuance Calendar released on June 29, the DMO will conduct bond auctions on July 20, August 17 and September 14. The programme will feature reopenings of three existing bond instruments rather than new issuances.
The July auction will offer the 22.60 percent FGN January 2035, 16.2499 percent FGN April 2037 and 15.45 percent FGN June 2038 bonds, with offer sizes ranging from ₦400 billion to ₦600 billion for each instrument. The August and September auctions will feature only the January 2035 and June 2038 bonds, with offer sizes increasing to between ₦600 billion and ₦800 billion per bond.
Based on the lower end of the offer ranges, the DMO plans to raise about ₦4 trillion during the quarter.
The continued reopening of existing bonds reflects the agency’s strategy of deepening liquidity in benchmark securities rather than introducing new instruments. Market analysts say the approach improves price discovery, enhances secondary market liquidity and supports more efficient trading.
Founder of Okwudili Ijezie & Co., Chief Blakey Ijezie, said the larger offer sizes suggest the DMO expects strong investor demand amid attractive yields in the domestic debt market. Meanwhile, Highcap Securities Chief Executive David Adonri said the issuance calendar points to sustained government borrowing and could keep bond yields elevated as the government competes with private issuers for investment funds.
The bond programme aligns with the Federal Government’s expanded 2026 borrowing plan of ₦29.2 trillion and underscores its strategy of extending debt maturities through medium- and long-term securities while reducing refinancing risks.
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