Investors kept chasing Federal Government of Nigeria bonds in May 2026, as the month’s auction ended with a 32.8% oversubscription.
The Debt Management Office said the auction drew ₦797.17 billion in total bids, including a ₦280 billion non-competitive bid, for bonds worth ₦600 billion.
Allotments rose sharply to ₦614.51 billion, up 122% from ₦276.8 billion in April.
The result shows that demand for Nigerian government debt stayed strong, even with tighter allotments than in some earlier months.
Strong Demand For Long Bonds
The auction offered two reopened instruments on May 2026. They were the 22.6% FGN JAN 2035 bond, with ₦300 billion on offer, and the 16.25% FGN APRIL 2037 bond, also with ₦300 billion on offer.
The 20-year April 2037 paper drew the strongest interest. It attracted ₦533.94 billion in bids from 96 successful applicants.
Meanwhile, the bond took the biggest share of the allotment, with ₦476.84 billion allotted to investors.
The JAN 2035 bond received ₦137.67 billion.
The DMO said the clearing yield for the JAN 2035 bond was 17%, while the APRIL 2037 bond cleared at 17.04%.
What The Numbers Show
The bonds were priced within specific ranges during the auction. The JAN 2035 instrument was priced between 15% and 22.6%, while the APRIL 2037 bond ranged from 14% to 18.49%.
That pattern suggests investors were willing to lock money into longer-dated Nigerian debt, even as the government kept borrowing through the local bond market.
The May auction also showed that appetite for sovereign debt remains firm among banks and other institutional buyers.
For readers tracking Nigeria’s debt market, the latest result gives a clear view of how investors are pricing government securities in a period of high yield demand.
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