The federal government is seeking to raise N1tn from domestic investors on Monday, September 14, relying heavily on a familiar debt instrument to meet its long-term funding requirements. According to the auction schedule released by Debt Management Office (DMO) director-general Patience Oniha, the offering is split between a major reopening of an established long-dated paper and the issuance of a new 10-year benchmark bond.
The bulk of the borrowing will be driven by the reopening of the 15.45 percent FGN June 2038 bond, through which the DMO aims to raise N600bn. The remaining N400bn will be offered via a newly introduced bond maturing in September 2036. This allocation strategy means that 60 percent of the total targeted funds for the Monday auction will come from an existing paper that has been repeatedly reopened since its launch in June 2023.
Reopening previous bond series allows debt managers to build market liquidity in benchmark instruments while minimising administrative costs, rather than creating new maturities with every auction. The June 2038 paper has increasingly turned into a focal point for government borrowing, serving as a vital channel for financing budget deficits and funding critical national infrastructure programs throughout 2026.
The upcoming issuance reflects the government’s strategy to balance its debt portfolio by tapping into institutional long-term funds, particularly pension fund administrators and insurance companies that actively seek long-duration, high-yielding assets to match their liability profiles. The N400bn September 2036 paper also offers the market a fresh 10-year yield reference point, catering to portfolio managers seeking medium-to-long-term sovereign exposure.
As the government continues to navigate its fiscal demands, market watchers will closely monitor subscription levels and final clearing yields at Monday’s session to gauge investor appetite and market expectations around domestic interest rates.
