Following the Federal Government’s first monthly bond sale of the year, which raised N1.5 trillion, Nigeria’s domestic bond market began 2026 on a strong note, reflecting strong investor confidence and good liquidity.
Conducted by the Debt Management Office, the auction included N900 billion inoadeder the February 2031, February 2034 and January 2035 FGN bonds.
Investor demand far surpassed forecasts, with aggregate bids reaching roughly N2.3 trillion—a bid cover ratio of 2.5 times and a significant increase over the last 2025 auction.
The News Chronicle notes that the government’s decision to accept N1.5 trillion from the oversubscription indicates a front-loaded borrowing approach aimed at meeting early-year funding needs while leveraging favorable market conditions.
Longer-dated instruments had the most demand, with the majority of subscriptions going for the February 2034 and January 2035 bonds.
Stop rates landed inside the 17 to 18 per cent band, therefore strengthening the attraction of government securities at present yield levels.
Supported by reinvestment flows and ongoing domestic demand, secondary market activity reflected the optimistic auction result.
But in the Eurobond sector, sentiment was more circumspect as offshore investors considered world risks and external debt worries, causing Nigerian sovereign yields to nudge upward.
Although foreign markets remain sensitive to global events, market analysts predict that domestic bonds will remain well supported in the short term.
