Nigeria’s Federal Government of Nigeria (FGN) bonds attracted N1.74 trillion in demand during the first half of 2026, according to data from the Debt Management Office (DMO).
The government allotted N929.3 billion across FGN bonds, reflecting robust investor appetite despite elevated borrowing costs.
Top issuers in the market paid yields of up to 20% to raise debt during the period, signaling persistent pressure on sovereign financing costs.
Top issuers in the market paid yields of up to 20% to raise debt during the period, signaling persistent pressure on sovereign financing costs.
The high yield environment underscores the challenging conditions for Nigerian sovereign debt.
While demand remained strong, the cost of capital for the government and other top issuers has risen significantly.
This dynamic suggests that investors are demanding higher compensation for risk, even as they continue to participate in primary market auctions.