Nigerian Government Raises N19trn from T-Bills, Bonds in 6 Months
Nigeria raised about N19 trillion from Treasury bills and local bonds in six months across primary market auctions to support the country’s 2026 budget deficit of N31.46 trillion.
The amount raised via local debt instruments accounts for more than 65% of the domestic borrowing plan for the year, according to the research subsidiary of Coronation Merchant Bank Limited.
The Debt Management Office (DMO) was aggressive at the June bond auction, where N1.2 trillion was allotted to investors at higher spot rates.
FGN bond supply had been trending downward during the first five months of 2026, according to Coronation Research, with offers declining from ₦900 billion in January to ₦800 billion in February, ₦700 billion in April, and ₦600 billion in May.
Analysts said June marked a sharp reversal: the DMO doubled the offer size to ₦1.20 trillion, its largest single bond auction of the year and a clear signal of stepped-up domestic financing needs.
With investors asked to absorb twice the volume they had grown accustomed to, the market demanded a higher yield to clear the larger supply.
The marginal rate on the 10-Year benchmark (22.60% FGN JAN 2035) jumped to 18.34% in June, up 134bps from 17.00% in May and 175bps from 16.59% in April.
The 20-Year local bond (16.25% FGN APR 2037) moved up, settling at 18.35% versus 17.04% in May, a 131bp increase. “This is the sharpest single-month repricing on the 2035 line in 2026 to date, reversing the disinflation-driven rate compression seen between January (17.52%) and April (16.59%)”, Coronation Research said.
The market anticipates bond rates repricing to extend into the second half due to inflation pressures, an expectation anchored on pre-election spending and increased money supply.
Headline inflation has now risen for three straight months from 15.38% in March, 15.69% in April and 15.93% in May, reversing the 11-month disinflation trend that ran through 2025.
According to fixed-income market analysts, this materially weakens the case for near-term policy easing and raises the real-yield premium investors demand on longer paper.
Year-to-date, the Federal Government of Nigeria has raised approximately N19.03 trillion through Treasury bills and bond issuances, representing 65.17% of the N29.20 trillion budgeted for domestic borrowing in 2026. CBN Mops Up N4.8trn from Two High-Ticket OMO Bills Auctions
