The Debt Management Office (DMO) has published a provisional Federal Government of Nigeria (FGN) bond issuance calendar for the third quarter of 2026, outlining plans to raise approximately N4 trillion through three auctions to finance the budget deficit and refinance maturing obligations.
According to the calendar obtained by Nairametrics, auctions are scheduled for July 20, August 17, and September 14. Rather than issuing new instruments, the DMO will reopen three existing benchmark bonds to enhance liquidity and improve price discovery in the domestic bond market.
For the July 20 auction, the DMO will reopen the 22.60% FGN JAN 2035 (remaining tenor: 8 years, 6 months), the 16.2499% FGN APR 2037 (10 years, 9 months), and the 15.45% FGN JUN 2038 (11 years, 11 months). Offer sizes are set between N500–600 billion for the 2035 bond and N400–500 billion for the 2037 bond, with the 2038 bond also included in the programme.
In August and September, the DMO will streamline the offering to the January 2035 and June 2038 bonds only, significantly increasing the offer size for each to between N600 billion and N800 billion per auction. Based on the lower end of the disclosed ranges, the three auctions are expected to generate around N4 trillion.
The calendar reflects the government’s continued preference for medium- to long-term instruments, with no short-tenor bonds included. Auctions will be held roughly four weeks apart, consistent with the DMO’s monthly issuance rhythm.
Market analysts welcomed the strategy of reopening existing bonds. Chief Blakey Ijezie, founder of Okwudili Ijezie & Co., said the approach would consolidate liquidity and strengthen price discovery.
“Reopening these three bonds consolidates liquidity and improves price discovery for investors,” Ijezie noted. He added that the progressively larger offer sizes signal expectations of sustained demand amid attractive yields in the primary market.
David Adonri, CEO of Highcap Securities Limited, described the programme as aggressive. “With N3.4 trillion potentially on offer, this remains an aggressive domestic borrowing programme for Q3,” he said, warning that heavy government borrowing could keep market yields elevated as the FGN competes with corporate issuers for funds. Both analysts cautioned that the calendar is provisional and subject to change based on market conditions.
The DMO’s strategy of reopening benchmark bonds aims to create larger, more liquid securities with tighter spreads and better secondary market efficiency. It also supports the government’s broader goal of extending the debt maturity profile to reduce near-term refinancing risks. The Federal Government recently raised its 2026 borrowing target to N29.20 trillion following an upward review of the budget and fiscal deficit.
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