The Debt Management Office (DMO) has released its provisional Federal Government of Nigeria (FGN) Bond Issuance Calendar for the third quarter of 2026, outlining plans to raise approximately N4 trillion through a series of monthly bond auctions.
The issuance schedule covers auctions slated for July 20, August 17, and September 14, 2026, with the agency opting to reopen existing bond instruments rather than introduce new debt securities. According to the DMO, the calendar remains provisional and may be adjusted in response to prevailing market conditions.
July Auction to Feature Three Reopened Bonds
The first auction of the quarter, scheduled for July 20, will comprise three reopened FGN bonds:
- 22.60% FGN January 2035
- 16.2499% FGN April 2037
- 15.45% FGN June 2038
The January 2035 bond, which will have approximately 8 years and 6 months remaining to maturity, is expected to attract subscriptions ranging between N500 billion and N600 billion.
The April 2037 instrument, with a remaining tenor of about 10 years and 9 months, will be offered within a range of N400 billion to N500 billion.
Meanwhile, the June 2038 bond, carrying nearly 12 years to maturity, will also be reopened as part of the auction.
Larger Offer Sizes Planned for August and September
Beginning in August, the DMO will streamline the offering by removing the April 2037 bond from the auction schedule.
Both the January 2035 and June 2038 instruments will remain available during the August 17 and September 14 auctions, with planned offer sizes increasing to between N600 billion and N800 billion for each bond.
Based on the lower end of the proposed issuance ranges, the government is expected to raise approximately N4 trillion during the third quarter.
Focus on Existing Benchmark Bonds
The decision to reopen existing securities instead of issuing new bonds reflects the DMO’s continued strategy of strengthening liquidity in benchmark instruments.
By concentrating issuance around established bond lines, the agency aims to improve secondary market trading, enhance price discovery, and provide investors with deeper and more liquid securities.
The issuance calendar also maintains the government’s preference for medium- and long-term borrowing, with no short-tenor bonds included in the quarter’s programme. Monthly auctions remain spaced roughly four weeks apart, consistent with the DMO’s established issuance pattern.
Analysts See Strong Investor Demand
Market analysts believe the reopening strategy is designed to deepen liquidity while taking advantage of robust investor appetite for government securities.
According to market participants, larger issuance volumes in the later months of the quarter suggest confidence that demand will remain resilient, particularly as elevated interest rates continue to make FGN bonds attractive to institutional investors.
The use of reopened benchmark bonds is also expected to support more active secondary market trading, as investors generally prefer securities with higher outstanding volumes and stronger liquidity.
However, analysts caution that the final auction sizes could be revised depending on prevailing market conditions and government financing requirements.
Investment Perspective
The Q3 bond issuance programme aligns with the Federal Government’s broader financing strategy for 2026, which includes funding budget deficits and refinancing maturing debt obligations.
With planned borrowing for the year rising to N29.20 trillion following an expanded national budget, domestic debt markets are expected to remain active throughout the second half of the year.
For investors, the continued issuance of longer-dated benchmark bonds presents opportunities to secure relatively attractive yields while benefiting from improved market liquidity. At the same time, sustained government borrowing may keep yields elevated as sovereign issuances compete with corporate debt offerings for available investment capital.
