The federal government (FG) plans to raise N700bn from the domestic bond market in April 2026.
This is a continuation of its gradual reduction in its monthly borrowing programme amid persistently high interest rates.
According to the April 2026 federal government of Nigeria Bond Offer Circular released by the Debt Management Office (DMO), the auction is scheduled for April 27, with settlement expected on April 29.
The offer will be carried out through the re-opening of three existing bonds across different maturities, a structure designed to deepen liquidity in benchmark securities and support market stability.
The breakdown includes N300bn of the 17.945 per cent FGN August 2030 bond, N100bn of the 17.95 per cent FGN June 2032 bond, and N300bn of the 22.60 per cent FGN January 2035 bond.
The bonds are issued in units of N1,000, with a minimum subscription of N50.001m, targeting institutional investors such as pension fund administrators, banks, and asset managers.
The DMO noted that the instruments qualify as liquid assets for banks and remain tax-exempt, factors that continue to drive demand.
The latest issuance reflects a steady downward adjustment in the government’s monthly borrowing target, falling from N900bn in January to N800bn in February, N750bn in March, and now N700bn in April.
Officials say the pattern suggests a controlled recalibration rather than a major policy shift.
In March, the government raised N750bn through a mix of five-year, seven-year, and 10-year bonds, with allocations of N250bn, N200bn and N300bn respectively.
The latest offer also shows a shift in maturity structure, with a reduced allocation to mid-tenor instruments.
Yields remain high across the curve, reflecting sustained investor demand for inflation and risk compensation.
The five-year and seven-year bonds are priced at about 17.945 per cent and 17.95 per cent, while the 10-year paper carries a significantly higher rate of 22.60 per cent.
Final returns will be determined at the auction, where investors bid based on yield-to-maturity plus accrued interest.
The elevated borrowing costs align with the central bank of Nigeria’s tight monetary stance aimed at curbing inflation, but they continue to raise the government’s debt servicing burden.
Earlier data from the Debt Management Office showed that Nigeria’s total debt servicing cost rose to about N16tn in 2025, up from N13.02tn in 2024, underscoring increasing fiscal pressure on government finances.