Nigeria’s bond market recorded strong investor interest in April as subscriptions exceeded the Federal Government’s offer, despite a sharp reduction in actual allotments.
Data released by the Debt Management Office showed that investors submitted bids worth about N948 billion against the N700 billion offered during the auction.
However, the government allocated only N276.79 billion, representing a significant drop from the N485.49 billion issued in March.
The auction covered three re-opened instruments with varying tenors, including five-year, seven-year and 10-year bonds.
Market activity was largely driven by demand for the longer-tenor instrument, with the 10-year bond attracting the highest level of subscriptions and accounting for the bulk of successful allotments.
The shorter-tenor bonds recorded comparatively modest demand and allocations.
Yields across the instruments settled within mid-teen ranges, reflecting prevailing market conditions and investor expectations.
The latest auction outcome indicates sustained confidence in government securities, even as authorities appear to be tightening supply.
Analysts say the pattern suggests a cautious debt strategy by the government, balancing funding needs with cost considerations, while investors continue to favour relatively stable fixed-income assets.
