The Federal Government, through the Debt Management Office (DMO), plans to raise N700 billion from the domestic debt market in April 2026. This aggressive borrowing stance is maintained as yields on long-term instruments remain elevated.
The offering will be conducted via auction on April 27, with settlement scheduled for April 29. The issuance comprises reopened bonds across three maturities: N300 billion in the 17.945% FGN August 2030 bond, N100 billion in the 17.95% FGN June 2032 bond, and N300 billion in the 22.60% FGN January 2035 bond. This strategy focuses on deepening liquidity in existing instruments.
Nigeria’s total debt service rose to about N16 trillion in 2025, driven by higher domestic interest payments and sustained external obligations. This figure represents an increase of N2.98 trillion or 22.9% from approximately N13.02 trillion recorded in 2024, highlighting growing fiscal pressure.
Domestic debt service rose to N8.61 trillion in 2025, compared to N5.87 trillion in 2024, an increase of N2.74 trillion or 46.6%. Domestic debt service accounted for 53.8% of total debt servicing in 2025.
Interest payments accounted for N8.24 trillion of the 2025 domestic debt service figure, approximately 95.7% of the total. This indicates that the government's burden is largely tied to servicing accumulated interest rather than repaying principal.
Within domestic instruments, FGN bonds alone accounted for about N5.35 trillion, representing roughly 65% of total domestic interest payments. Nigerian Treasury Bills contributed N2.55 trillion, or about 31%, reflecting the impact of tight monetary conditions on borrowing costs.
The April bond sale is a slight reduction from the N750 billion offered in March 2026. In March, the DMO offered N250 billion in a 5-year bond, N200 billion in a 7-year bond, and N300 billion in a 10-year bond.
The DMO noted that the bonds qualify as liquid assets for banks and are exempt from certain taxes, making them attractive in the current high-yield environment. The bonds will be sold in units of N1,000, with a minimum subscription of N50,001 million, targeting institutional investors.
