The latest Federal Government of Nigeria bond auction for March 2026 has shown a notable surge in investor appetite, with the Debt Management Office revealing a 4.28% oversubscription. investors showed a strong preference for government-backed debt, placing total bids of 931.5 billion Naira against the 750 billion Naira initially offered. Despite this high demand, the total amount actually allotted to investors saw a slight dip, falling to 485.49 billion Naira compared to the 524.28 billion Naira recorded in February.
During this recent outing, the government presented three different investment instruments to the public. These included a five-year reopening of the 17.945% bond due in August 2030, a seven-year reopening of the 17.95% bond due in June 2032, and a nine-year reopening of the 19.89% bond due in May 2033. The variety of these offers allowed both short-term and long-term investors to participate, though one particular category clearly stole the show.
The nine-year MAY 2033 bond emerged as the clear favorite among the participants. Reports gathered that this specific instrument attracted a massive 462.21 billion Naira in bids from over 150 successful applicants. This enthusiasm translated into the largest share of allotments, with 332.71 billion Naira being soaked up by the market for this bond alone. In comparison, the shorter-term August 2030 bond saw 88.79 billion Naira in allotments, while the June 2032 bond recorded 63.99 billion Naira.
Investors also kept a close eye on the clearing yields during the auction. The August 2030 bond cleared at 16%, the June 2032 bond at 16.15%, and the highly sought-after May 2033 bond settled at 16.64%. Throughout the bidding process, prices fluctuated within specific ranges for each category, showing the competitive nature of the market as investors sought the best possible returns. This trend highlights a growing confidence in the Nigerian debt market, even as the government remains selective in its final allotments.
