Nigeria’s domestic debt market recorded unprecedented demand in September 2025, with the Federal Government’s monthly bond auction oversubscribed by a massive 530 per cent, despite the CBN’s recent cut in the Monetary Policy Rate (MPR).
The Debt Management Office (DMO) disclosed that total subscriptions reached ₦1.26 trillion against the ₦200 billion on offer, a more than fourfold jump from the previous month.
This performance underscores robust investor appetite and significant liquidity within the financial system.
The auction featured two instruments: the 5-year and the 7-year reopening tenors. Investor interest was extraordinary, with the 7-year series alone drawing ₦1.03 trillion in bids. Total allotments rose sharply to ₦576.62 billion for the month.
The flood of bids successfully drove down stop rates, reflecting clearer investor expectations amid easing inflation and a more stable macroeconomic outlook.
Analysts noted that the demand scale demonstrates both the high level of system liquidity and the lack of alternative instruments offering comparable yields, suggesting market sentiment is aligning with expectations of sustained disinflation and further monetary policy easing.