By Onu Okorie

The Debt Management Office (DMO) has unveiled plans to raise about N4 trillion from the domestic debt market in the third quarter of 2026 through Federal Government of Nigeria FGN bond auctions, signalling continued reliance on local borrowing to finance government obligations.

According to the DMO’s Q3 2026 FGN Bond Issuance Calendar, the borrowing programme will be executed through three monthly auctions scheduled for July 20, August 17 and September 14, 2026.

The issuance calendar shows that the DMO will reopen existing bond instruments rather than introduce new ones, a strategy analysts say is aimed at deepening liquidity in the secondary market and strengthening price discovery.

At the July 20 auction, investors will be offered three reopened bonds: the 22.60 per cent FGN January 2035 bond, the 16.2499 per cent FGN April 2037 bond and the 15.45 per cent FGN June 2038 bond.

The January 2035 bond, with a remaining maturity of eight years and six months, will have an offer size of between N500 billion and N600 billion. The April 2037 bond, which will have 10 years and nine months to maturity, will be offered in the range of N400 billion to N500 billion, while the June 2038 bond, with about 11 years and 11 months to maturity, will also be available to investors.

The August 17 auction will feature only the January 2035 and June 2038 bonds, with the offer size for each increased to between N600 billion and N800 billion.

The same two instruments and offer range will be maintained at the September 14 auction, bringing the total amount expected to be offered during the quarter to about N4 trillion based on the lower end of the announced ranges.

The calendar indicates that the DMO is maintaining its monthly auction pattern while focusing on medium- and long-term debt instruments. No short-term or new bond series was included in the programme, underscoring the government’s strategy of extending the maturity profile of its domestic debt.

Market analysts said the decision to reopen existing bonds instead of creating new issues would improve liquidity and make the bonds more attractive to investors.

Founder of Okwudili Ijezie & Co., Chief Blakey Ijezie, said the reopening strategy would consolidate liquidity and enhance price discovery in the market.

“The widening offer sizes from July to September suggest DMO expects strong demand due to elevated rates seen in recent primary market auctions, and the rates remain quite attractive,” he said.

According to him, investors generally prefer reopened bonds because they provide more predictable liquidity in the secondary market.

Also commenting, the Chief Executive Officer of Highcap Securities Limited, Mr. David Adonri, described the borrowing plan as an indication that the Federal Government would continue its aggressive domestic borrowing programme in the third quarter.

“With N3.4 trillion potentially on offer, this remains an aggressive domestic borrowing programme for Q3,” Adonri said.

He noted that sustained government borrowing could keep yields elevated as the government competes with corporate issuers for investment funds in the domestic capital market.

The latest issuance calendar comes as the government continues to rely on the domestic bond market to finance budget deficits while seeking to balance funding needs with debt sustainability objectives.