The Debt Management Office (DMO) has announced its plan to auction approximately N4 trillion in FGN Bonds during the third quarter (Q3) of 2026. This borrowing program will be executed across three auction dates: July 20, August 17, and September 14, 2026.
The Q3 2026 FGN Bond Issuance Calendar, released on Monday, June 29, indicates a strategy of reopening existing instruments rather than introducing new bond series. The DMO noted that the calendar is provisional and subject to change at short notice.
The July 20 auction will feature three bonds: the 22.60% FGN JAN 2035, the 16.2499% FGN APR 2037, and the 15.45% FGN JUN 2038. Each bond will be reopened, with amounts ranging from N400 billion to N600 billion per instrument.
Specifically, the 22.60% FGN JAN 2035 will have 8 years and 6 months left to maturity, with an offer between N500 billion and N600 billion. The 16.2499% FGN APR 2037 will carry 10 years and 9 months to maturity, offering N400 billion to N500 billion. The 15.45% FGN JUN 2038 will run for 11 years and 11 months.
For the August 17 auction, the calendar excludes the April 2037 paper, retaining only the January 2035 and June 2038 bonds. Offer ranges will widen significantly at this auction, with N600 billion to N800 billion available for both instruments. The September 14 auction will repeat this two-bond structure, also ranging from N600 billion to N800 billion per bond.
Across the entire quarter, the total bond offers are projected to be approximately N4 trillion, based on the lower ranges of the disclosed amounts. No new bond series are listed, indicating the DMO's focus on consolidating liquidity around existing benchmarks.
This strategy shows a clear preference for medium and long-dated instruments throughout the three months. Auction dates are spaced roughly four weeks apart, maintaining the DMO’s typical monthly issuance pattern, and the absence of shorter-tenor bonds points to a continued government preference for extending the debt maturity profile.
Analysts view the reopening strategy as an effort by the DMO to deepen existing bond lines and avoid market fragmentation. Chief Blakey Ijezie, founder of Okwudili Ijezie & Co., stated that “Reopening these three bonds consolidates liquidity and improves price discovery for investors.”
Ijezie added, “The widening offer sizes from July to September suggest DMO expects strong demand due to elevated rates seen in recent primary market auctions, and the rates remain quite attractive.” He also noted that investors typically favour reopened bonds due to their more predictable secondary market liquidity.
Mr. David Adonri, Chief Executive of Highcap Securities Limited, commented that the calendar signals continued heavy government borrowing through the third quarter. “With N3.4 trillion potentially on offer, this remains an aggressive domestic borrowing programme for Q3,” the investment banking expert said.
Adonri further advised that “Investors should expect yields to stay elevated as government competes for funds alongside corporate issuers.” Both analysts acknowledged that the calendar’s provisional nature means actual amounts offered could shift based on market conditions.
The DMO issues FGN bonds primarily to fund the government’s substantial budget deficits for 2026 and to refinance maturing obligations. The Federal Government increased its planned borrowing for 2026 to N29.20 trillion following an expansion in the proposed budget size and fiscal deficit.
Reopening existing bonds allows the government to build larger, more liquid benchmark issues over time, which typically results in tighter bid-ask spreads and improved price transparency for investors. The bond tenors, ranging from 10 to 20 years, reflect the government’s strategy of extending its debt maturity profile.
Longer-dated bonds also serve to reduce refinancing risk by spreading repayment obligations further into the future. The Q3 2026 calendar thus underscores the DMO’s continued reliance on reopened benchmark bonds to meet financing needs while supporting market depth.
