The Debt Management Office (DMO) recorded a significant decline in the volume of sovereign debt instruments issued in June 2025, as total treasury bills (T-bills) sold during the month were valued at N612.02 billion.

The figure reflects a sharp 49.6 per cent month-on-month decline compared to the N1.21 trillion worth of T-bills sold in May 2025. Similarly, the DMO conducted FGN bond auctions worth N100 billion in June, marking a 66.74 per cent decrease from the N300.69 billion sold in the previous month.

Despite the drop in issuance volumes, investor appetite remained strong, as evidenced by the robust oversubscription levels recorded across both instruments.

T-bills were oversubscribed by 315.44 per cent, while FGN bonds saw an even higher oversubscription rate of 502.86 per cent during the review period, underscoring sustained demand for sovereign debt amid shifting market dynamics.

The Central Bank of Nigeria (CBN) also scaled back on Open Market Operations (OMO) sales in June 2025, issuing a total of N1.51 trillion worth of OMO bills.

This represented a 36.12 per cent drop from the N2.37 trillion sold in May. Nonetheless, demand remained strong, with OMO instruments oversubscribed by 154.92 per cent, indicating that liquidity conditions in the financial system remained supportive of fixed-income investments.

On the corporate debt side, activity in the non-sovereign segment of the capital market remained muted. There were no new listings or redemptions of non-sovereign bonds on the FMDQ Exchange in June, keeping the total outstanding value of non-sovereign bonds unchanged at N2.25 trillion.

However, the commercial paper (CP) market experienced a slowdown in fresh issuances. The total value of CPs quoted on the FMDQ Exchange in June declined sharply by 60.85 per cent to N144.89 billion, down from N370.1 billion in May. A total of 13 CPs were quoted during the month, with seven of these issuances coming from firms in the financial services sector.

Despite the lower volume of new CP quotations and CP maturities totalling N113.2 billion in the period, the total outstanding value of commercial papers on the FMDQ platform increased slightly by 2.42 per cent or N31.6 billion, rising to N1.34 trillion.

This modest growth in outstanding CPs suggests continued interest from corporate issuers seeking short-term funding amid evolving macroeconomic conditions.