FG Plans ₦5.75tn Bond Sales as Oil Production Struggles to Sustain Growth
By Reloaded News Desk
ABUJA — The Federal Government plans to raise ₦5.75 trillion through domestic bond sales between October and December 2026, extending its borrowing programme as fresh oil production figures highlight the challenge of sustaining growth in Nigeria’s main source of export revenue.
The Debt Management Office (DMO) has scheduled bond auctions for October 19, November 16 and December 14, with ₦1.75 trillion planned for October and ₦2 trillion each for November and December.
The proposed offers follow the allotment of ₦7.15 trillion in government bonds between January and September, more than double the ₦3.48 trillion recorded during the same period in 2025.
The three bonds on offer carry annual coupon rates of 19 per cent, 16.79 per cent and 15.45 per cent, reflecting the financing costs attached to the government’s domestic borrowing programme. The issuance calendar remains provisional and may be revised.
Meanwhile, figures released by the Nigerian Upstream Petroleum Regulatory Commission show that Nigeria’s average daily production of crude oil and condensates rose by 2.34 per cent to approximately 1.717 million barrels in September.
Production peaked at 1.84 million barrels on the best-performing day of the month. However, average crude oil production excluding condensates stood at 1.53 million barrels per day.
The country produced 450.17 million barrels of crude oil and condensates between January and September, down from 457.65 million barrels during the corresponding period last year.
The figures underline the difficulty of translating occasional improvements in daily production into sustained output growth. Oil receipts remain important to government revenue, foreign exchange earnings and the financing of public expenditure.
The Federal Government’s 2026 budget projected total revenue of ₦34.33 trillion and expenditure of ₦58.18 trillion, including ₦15.52 trillion for debt servicing. The projected deficit was ₦23.85 trillion.
The planned bond sales will provide domestic financing, but the larger policy question is whether government revenue can grow sufficiently to reduce repeated borrowing and the pressure of debt servicing on public finances.
For households and businesses, the consequences depend partly on how borrowed funds are used.
Productive investment could support economic activity, while rising interest obligations could leave less fiscal room for infrastructure and essential public services.
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