Nigeria: DMO Allots N1.54trn in January Bond Auction, Overshoots N900bn

The Federal Government of Nigeria (FGN) has allotted a total of N1.54 trillion at its January 2026 bond auction, significantly exceeding the N900 billion initially offered.

This, analysts say, underscores sustained investor confidence in government securities despite a high-interest-rate environment.

The figures were released by the Debt Management Office (DMO) following the auction held on January 26, 2026, which involved the re-opening of three existing FGN bond instruments.

Strong investor demand across all maturities pushed total subscriptions and allotments well above the offer size, reflecting the continued attractiveness of FGN bonds and prevailing yields. Settlement for all successful bids is scheduled for January 28, 2026.

According to the DMO, all three bonds on offer recorded significant oversubscription, with longer-dated instruments attracting particularly robust interest despite wide bid ranges.

The 18.50 per cent FGN February 2031 bond had N300 billion on offer but attracted bids worth N514.45 billion from 124 submissions, with N398.19 billion allotted, including N17.50 billion in non-competitive allotments.

The 19.00 per cent FGN February 2034 bond saw subscriptions hitting about N1.01 trillion against an offer of N400 billion while N576.33 billion was allotted, including N113.22 billion allotted on a non-competitive basis.

The 22.60 per cent FGN January 2035 bond recorded subscriptions of N731.40 billion for an offer size of N200 billion, with total allotment reaching N570.16 billion from 176 successful bids.

Overall, marginal rates for the three bonds settled within a narrow band of 17.50% to 17.62%, even though bid ranges extended as high as 25.90% on the longest-dated instrument.

The DMO clarified that while allotments were made at these marginal rates, the original coupon rates of 18.50%, 19.00%, and 22.60% will be maintained over the life of the respective bonds.

Read the original article on Daily Trust.