Nigeria’s government securities auction allotments declined by 55.86% to N9.501 trillion in October 2026 from N21.527 trillion in September, as demand ratios weakened and monetary authorities left substantial investor bids unallotted.
According to the Financial Markets Dealers Association’s (FMDA) October 2026 market report, the combined figure covers Nigerian Treasury Bills (NTBs), Open Market Operations (OMO) bills and Federal Government of Nigeria (FGN) bonds.
The N12.026 trillion decline was driven mainly by lower OMO issuance, while FGN bonds were the only instrument to record an increase in allotments during the month.
According to FMDA, OMO issuance declined by 64.69% to N6.182 trillion in October from N17.510 trillion in September, accounting for most of the reduction in total auction allotments.
Secondary-market turnover across the three instruments also declined by 37.19% to N25.754 trillion from N41.002 trillion, with OMO accounting for N16.755 trillion.
Nigeria’s 10-year government bond yield increased by 40 basis points to 16.63% in October, contrasting sharply with declines across several international markets.
In Nigeria’s secondary market, average Treasury Bills yields increased by 28 basis points to 18.02%, led by the nine-month instrument, which rose to 18.71%.
Average FGN bond yields increased by 23 basis points to 16.18%, while average OMO yields declined to 18.88% from 19.81%.
At the October 19 FGN bond auction, the DMO allotted approximately N1.2 trillion, compared with N748.64 billion in September. The stop rate on the 16.79% FGN September 2036 bond increased to 17.29% from 16.79%, indicating higher borrowing costs for that instrument.
The reduction in October’s OMO allotments came after substantial liquidity withdrawals in September when the CBN sold approximately N17.51 trillion in OMO securities.
Those September sales exceeded maturities of N10.89 trillion, resulting in a net withdrawal of approximately N6.62 trillion.
The moderation in October coincided with substantial unallotted subscriptions at the final OMO and Treasury Bills auctions.
According to the FMDA, maintaining attractive returns for foreign investors holding OMO securities remains an important consideration in the CBN’s interest-rate strategy.
The shift in issuance volumes also highlights the relationship between maturing securities, fresh allotments and available banking-system liquidity.
The naira depreciated by 0.87% to N1,338.99 per dollar in the Nigerian Foreign Exchange Market during October, despite CBN dollar sales exceeding $3 billion, according to FMDA.
Investors will be monitoring the CBN’s policy stance, exchange-rate developments and oil-price risks linked to the Middle East. The combination of lower securities allotments, rising domestic bond yields and substantial projected inflows makes subsequent auctions important indicators of Nigeria’s fixed-income market direction.
