The Federal Government issued N7.15 trillion worth of bonds in the first nine months of 2026, significantly increasing its borrowing through the domestic bonds market.
An analysis of monthly auction results released by the Debt Management Office (DMO) showed that the figure represents a 106 per cent increase from the N3.48 trillion allocated during the same period in 2025.
The sharp increase reflects the Federal Government’s growing reliance on the domestic capital market to meet its financing needs and the larger volume of government securities allocated to investors.
Exceptionally high bond allotments in January, June, July and August drove the growth, more than offsetting declines recorded in several other months.
The DMO allocated N1.22 trillion in FGN bonds in June, marking the largest year-on-year increase during the period, compared with N100 billion allocated in the same month in 2025.
The government also significantly increased its January allotment from N601.04 billion to N1.54 trillion, representing a 157 per cent rise. In July, the government allocated N931.82 billion, up 401 per cent from N185.93 billion recorded in the same month the previous year.
Allotments experienced a notable surge in August, rising by 491% from N136.16 billion to N805.16 billion. In September, allocations reached N748.64 billion, reflecting a 29.8% increase compared to N576.62 billion recorded in the corresponding period of 2025.
Nigeria’s total public debt stood at N166.79 trillion as of June 30, 2026, with domestic debt accounting for N91.59 trillion, or 54.91 per cent.
Federal Government of Nigeria (FGN) bonds accounted for the largest share of the Federal Government’s domestic debt, with an outstanding value of N64.84 trillion.
The amount represented 74.53 per cent of the Federal Government’s total domestic debt.
Backstory…
Historically, savings bonds served as a safe, accessible refuge for small-scale investors seeking steady quarterly income.
The pressure has been particularly significant because debt servicing consumes a large portion of government revenue.
This has made the government’s ability to raise more revenue a central issue in its fiscal reforms. The administration has therefore been pursuing measures to increase tax collection and widen the revenue base while continuing to borrow to meet immediate financing needs.
The domestic bond market has provided a ready source of funding because banks, pension funds, asset managers and other investors routinely buy government securities.
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