The Federal Government is set to raise N700 billion from the domestic bond market in April 2026, continuing a steady reduction in its monthly borrowing as it navigates rising interest rates.
According to details from the April bond offer circular released by the Debt Management Office, the auction will take place on April 27, with settlement scheduled for April 29.
The offering will be done through the re-opening of existing bonds across three maturities, a strategy aimed at boosting liquidity in already established securities. The breakdown includes N300 billion for the 17.945% FGN August 2030 bond, N100 billion for the 17.95% FGN June 2032 bond, and another N300 billion for the 22.60% FGN January 2035 bond.
Each bond will be issued in units of N1,000, with a minimum subscription set at N50.001 million, targeting institutional investors such as banks, pension funds, and asset managers. The instruments also qualify as liquid assets for banks and come with tax exemptions, factors that typically sustain investor interest.
This latest offer reflects a gradual decline in borrowing levels over recent months. The government had initially offered N900 billion in January, followed by N800 billion in February and N750 billion in March, before reducing it further to N700 billion in April. The trend suggests a cautious adjustment rather than a major shift in borrowing strategy.
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Interest rates on the bonds highlight the current high-yield environment. While the shorter-term bonds carry rates just under 18%, the 10-year bond stands significantly higher at 22.60%, indicating investor demand for stronger returns amid inflation, exchange rate concerns, and global economic uncertainty.
Final yields, however, will be determined at the auction, where investors bid based on their preferred returns.
The high interest rates are closely tied to the Central Bank of Nigeria’s tight monetary policy, aimed at controlling inflation. This has, in turn, increased the government’s cost of borrowing and placed additional pressure on debt servicing.
Recent data shows Nigeria’s debt servicing rose to about N16 trillion in 2025, up from N13.02 trillion in 2024, underscoring the growing fiscal burden facing the government.
