Date: April 23, 2026 l Reporter: Usman Adebayo
Nigeria’s Federal Government has announced plans to raise ₦700 billion from the domestic bond market in April 2026, continuing its borrowing strategy amid rising interest rates and economic pressures.
According to details from the Debt Management Office (DMO), the bond auction is scheduled for April 27, with settlement expected on April 29. The funds will be raised through the re-opening of existing Federal Government bonds across multiple maturities, a move aimed at improving liquidity in the market.
The bond offering will consist of three instruments: ₦300 billion for the 17.945 percent FGN August 2030 bond, ₦100 billion for the 17.95 percent FGN June 2032 bond, and another ₦300 billion for the 22.60 percent FGN January 2035 bond.
These bonds will be issued at a unit price of ₦1,000, with a minimum subscription requirement of ₦50.001 million, indicating that the offering is primarily targeted at institutional investors such as banks, pension funds, and asset managers.
The April borrowing plan reflects a gradual reduction in the government’s monthly bond issuance. Data shows that the offer has declined steadily from ₦900 billion in January to ₦800 billion in February, ₦750 billion in March, and now ₦700 billion in April.
Officials say the strategy is part of a broader effort to manage borrowing costs while maintaining access to funding needed for budgetary obligations and public spending. However, analysts note that interest rates on government securities remain elevated, particularly for long-term bonds, which increases the overall cost of borrowing.
The bonds are backed by the full faith and credit of the Federal Government of Nigeria and are considered secure investment instruments. They also qualify as liquid assets for banks and enjoy certain tax exemptions, factors that continue to attract investor interest despite market uncertainties.
Economic experts say the government’s continued reliance on domestic borrowing reflects the need to finance budget deficits and sustain public expenditure. However, they also warn that rising debt levels and higher interest costs could pose challenges for fiscal sustainability if not carefully managed.
As Nigeria navigates inflation pressures and global economic uncertainties, the outcome of the April bond auction will be closely watched by investors and policymakers alike, as it provides insight into market confidence and the government’s financing strategy.