The planned issuance, outlined in a revised bond calendar released by the Debt Management Office (DMO), will involve ₦2 trillion in government securities at each auction. The November auction is scheduled for 16 November, with a further ₦2 trillion offer planned for 14 December.
The fundraising programme will comprise four existing Federal Government of Nigeria bond instruments with maturities extending from 2028 to 2033.
The November and December offers will each include ₦700 billion in the March 2028 bond, ₦250 billion in the April 2029 instrument, ₦750 billion in the August 2030 bond and ₦300 billion in the May 2033 security.
The August 2030 instrument represents the largest component of the planned issuance, accounting for ₦1.5 trillion across both auctions.
The government's borrowing plans come against a backdrop of elevated interest rates in the domestic fixed-income market. Average Federal Government bond yields increased to 16.37% in the week ended 6 November, from 16.17% in the preceding week, according to figures reported by BusinessDay.
The seven-year bond recorded a particularly sharp increase, with its yield rising by 104 basis points to 17.77%, indicating stronger returns demanded by investors on selected longer-dated government securities.
At the same time, liquidity within Nigeria's banking system remains elevated despite aggressive monetary tightening and liquidity-management operations by the Central Bank of Nigeria.
The CBN raised ₦5.667 trillion through Open Market Operations auctions conducted on 3 and 6 November, highlighting the scale of its efforts to manage excess liquidity in the financial system.
For the Federal Government, domestic bond issuance provides an established mechanism for accessing institutional and private-sector capital while financing budgetary requirements.
However, sustained reliance on domestic borrowing raises important considerations for debt-servicing costs and the availability of credit to businesses. Higher government yields can increase competition for investment funds, potentially influencing private-sector financing conditions.
The latest fundraising programme also comes as Nigeria continues to pursue a broader borrowing strategy to finance its 2026 budget deficit. The government has separately sought legislative approval for an external borrowing programme of approximately ₦10.79 trillion already provided for in the budget.
The success of the bond auctions will depend on investor appetite, prevailing yields and broader financial market conditions.
For policymakers, the challenge will be to secure the financing required to support public expenditure while maintaining debt sustainability and avoiding excessive pressure on private-sector investment.
