The Debt Management Office (DMO) has announced plans to raise approximately N4 trillion through Federal Government of Nigeria (FGN) bond auctions in the third quarter (Q3) of 2026, underscoring the government’s continued reliance on the domestic debt market to finance its fiscal operations.
According to the provisional Q3 2026 FGN Bond Issuance Calendar, the auctions will take place on July 20, August 17, and September 14, 2026, with all offerings consisting of reopened existing bond instruments rather than new issuances.
The calendar indicates that the DMO will reopen three benchmark bonds in July: the 22.60% FGN JAN 2035, 16.2499% FGN APR 2037, and 15.45% FGN JUN 2038.
The January 2035 bond, which will have a remaining tenor of eight years and six months at the time of the auction, will be offered in amounts ranging from N500 billion to N600 billion. The April 2037 bond, with about 10 years and nine months to maturity, will have an offer size of N400 billion to N500 billion, while the June 2038 bond will also be available as part of the July auction.
For the August and September auctions, the DMO will retain only the January 2035 and June 2038 bonds, increasing the offer range to between N600 billion and N800 billion for each instrument.
Based on the lower end of the proposed offer sizes, the total value of bonds scheduled for issuance during the quarter is estimated at around N4 trillion.
Focus on benchmark liquidity
The absence of new bond series suggests the DMO is prioritising the reopening of existing benchmark securities to deepen liquidity in the domestic bond market. Reopening outstanding bonds typically increases their trading volume, improves price discovery, and enhances liquidity in the secondary market.
The issuance calendar also reflects the government’s continued preference for medium- and long-term borrowing, with bond maturities ranging between 10 and 20 years. Market observers say this strategy helps extend Nigeria’s debt maturity profile while reducing refinancing risks.
Government borrowing strategy
FGN bonds remain one of the Federal Government’s primary funding instruments for financing budget deficits and refinancing maturing debt obligations.
Earlier this year, the Federal Government increased its planned borrowing for 2026 to N29.20 trillion following an expansion of the national budget and widening fiscal deficit.
By concentrating issuance on reopened benchmark bonds, the DMO aims to improve market depth while ensuring efficient execution of its domestic borrowing programme throughout the year.SEO Assets
