By Kehinde Ibrahim, Lagos
THE Debt Management Office, DMO, has unveiled plans to raise nearly N4 trillion through Federal Government of Nigeria, FGN, bond auctions in the third quarter of 2026, as the government continues its domestic borrowing programme to finance budgetary obligations and strengthen liquidity in the sovereign debt market.
According to the DMO’s provisional FGN Bond Issuance Calendar for the third quarter, the bond auctions will be conducted on July 20, August 17, and September 14, 2026. The calendar, released to investors on Monday, indicated that the agency will rely entirely on the reopening of existing bond instruments rather than introducing new issues during the period.
The issuance calendar, which is subject to change at short notice depending on market conditions and government funding requirements, outlined a strategy aimed at deepening liquidity in existing benchmark securities while maintaining the Federal Government’s established borrowing pattern.
The first auction, scheduled for July 20, will feature three reopened bond instruments: the 22.60 per cent FGN January 2035 bond, the 16.2499 per cent FGN April 2037 bond, and the 15.45 per cent FGN June 2038 bond.
Under the July offering, the DMO plans to raise between N500 billion and N600 billion through the January 2035 bond, which will have a remaining tenor of eight years and six months. The April 2037 bond, with a remaining maturity of 10 years and nine months, is expected to attract between N400 billion and N500 billion, while the June 2038 bond, which will have approximately 11 years and 11 months left to maturity, will also form part of the offering.
The issuance programme changes slightly in August and September as the DMO drops the April 2037 bond from subsequent auctions. Instead, only the January 2035 and June 2038 bonds will be offered during the August 17 and September 14 auctions.
For both auctions, the planned offer size has been increased significantly, with each bond expected to attract between N600 billion and N800 billion, reflecting the government’s intention to mobilise larger volumes of domestic funding during the latter part of the quarter.
Based on the minimum amounts indicated in the issuance calendar, the Federal Government could raise approximately N4 trillion across the three auctions, although the final amount will depend on investor demand and the volume eventually allotted.
The continued reliance on reopened bonds instead of new issuances, signaled the DMO’s strategy of consolidating liquidity around established benchmark securities. Market participants noted that reopening existing bonds helps improve trading activity in the secondary market, enhances price discovery and reduces fragmentation within the domestic bond market.
The issuance plan also underscored the government’s preference for medium- and long-term borrowing, as no short-tenor instruments are included in the third-quarter calendar. This approach aligns with the DMO’s long-standing objective of extending the country’s debt maturity profile while reducing refinancing risks associated with short-term obligations.
The three auction dates are scheduled roughly four weeks apart, maintaining the DMO’s traditional monthly bond issuance cycle. The original maturities of the securities remain unchanged, covering benchmark tenors of 10, 15 and 20 years.
Financial market analysts believed that the strategy reflected confidence in sustained investor appetite for government securities despite evolving macroeconomic conditions.
Founder of Okwudili Ijezie & Co., Chief Blakey Ijezie said that the decision to reopen existing bonds rather than introduce fresh instruments would strengthen liquidity in the domestic debt market and make the securities more attractive to investors.
According to him, consolidating existing bond lines enhances market efficiency by improving price discovery and facilitating more active secondary market trading.
He added that the increase in planned offer sizes from July through September suggests that the DMO anticipates continued robust investor demand, supported by the relatively high yields recorded at recent primary market auctions.
Ijezie noted that reopened bonds generally enjoy stronger investor patronage as they provide better liquidity in the secondary market, making them easier to trade and more attractive to institutional investors seeking flexibility in managing their fixed-income portfolios.
The third-quarter issuance programme comes as the Federal Government continues to depend on the domestic debt market to finance fiscal deficits while balancing debt sustainability objectives amid evolving economic and monetary conditions.
