By Mariam Abeeb
The Debt Management Office has unveiled plans to raise about N4tn through Federal Government bond auctions in the third quarter of 2026, as the government continues efforts to finance its obligations while extending the maturity profile of its debt.
According to the DMO’s provisional Q3 2026 Federal Government Bond Issuance Calendar obtained on Monday, the auctions will hold on July 20, August 17 and September 14, with all offerings comprising reopenings of existing bonds rather than fresh issuances.
The July auction will feature 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.
The DMO plans to offer between N500bn and N600bn of the January 2035 bond, N400bn to N500bn of the April 2037 bond and N400bn to N500bn of the June 2038 bond.
For the August and September auctions, only the January 2035 and June 2038 bonds will be offered, with each instrument carrying an offer size of between N600bn and N800bn.
Based on the lower end of the offer ranges, the DMO is expected to raise about N4tn during the three-month period.
The issuance calendar indicates that the agency is focusing on reopening existing bond lines to improve market liquidity instead of introducing new debt instruments.
The auction dates, scheduled roughly four weeks apart, also maintain the DMO’s monthly bond issuance pattern, while the absence of shorter-tenor securities underscores the government’s preference for longer-term borrowing.
Market analysts said the strategy would deepen liquidity in the domestic bond market and improve price discovery for investors.
Founder of Okwudili Ijezie & Co., Chief Blakey Ijezie, said reopening existing bonds would strengthen trading activity in the secondary market.
“Reopening these three bonds consolidates liquidity and improves price discovery for investors,” he said.
He added, “The widening offer sizes from July to September suggest DMO expects strong demand due to elevated rates seen in recent primary market auctions, and the rates remain quite attractive.”
According to him, investors generally prefer reopened bonds because they provide more predictable liquidity in the secondary market.
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