The Federal Government is set to raise ₦700bn from the domestic bond market in April 2026, extending its gradual reduction in monthly borrowing as elevated interest rates continue to shape debt issuance strategy.

According to the April 2026 Federal Government of Nigeria Bond Offer Circular released by the Debt Management Office, the auction is scheduled for April 27, with settlement fixed for April 29.

The offer will be carried out through the re-opening of three existing benchmark bonds, a structure aimed at boosting liquidity in key maturities while sustaining strong investor participation in the domestic debt market.

Specifically, the issuance comprises ₦300bn of the 17.945% FGN August 2030 bond, ₦100bn of the 17.95% FGN June 2032 bond, and ₦300bn of the 22.60% FGN January 2035 bond.

The bonds will be issued in ₦1,000 units, with a minimum subscription of ₦50.001m, targeting institutional investors including pension fund administrators, banks, and asset managers.

The Debt Management Office noted that the instruments remain eligible as liquid assets for banks and retain tax-exempt status under existing regulations—key factors that continue to underpin strong demand in the market.

A review of recent auctions indicates a consistent downward adjustment in monthly borrowing: ₦900bn in January, ₦800bn in February, ₦750bn in March, and now ₦700bn in April, reflecting a more measured issuance approach.

In March, the government raised ₦750bn through a mix of five-year, seven-year, and 10-year instruments, highlighting sustained investor appetite despite rising yields.

The latest offer also reflects a rebalancing of maturities, with a reduced allocation to the seven-year segment, while maintaining significant supply in both short- and long-dated papers.

Coupon rates remain elevated, underscoring the high-yield environment: the five-year and seven-year bonds are priced at 17.945% and 17.95% respectively, while the 10-year bond carries a notably higher yield of 22.60%.

This increase compared to earlier issuances reflects heightened risk premiums amid inflationary pressures, currency volatility, and global financial uncertainty.

Final yields will be determined at the auction, with successful bids allocated on a yield-to-maturity basis, alongside accrued interest.

Nigeria’s tight monetary stance—anchored by the Central Bank of Nigeria’s inflation-control efforts—continues to support high interest rates, but also raises the cost of domestic borrowing and intensifies pressure on debt servicing.

Data from the Debt Management Office shows that total debt service rose to about ₦16tn in 2025, up from ₦13.02tn in 2024, marking a 22.9% increase and highlighting the growing strain on fiscal revenues.