By Àkànì Olúwaségún Michael
Nigeria’s debt market grew to N113.72 trillion in the week ended June 19, 2026, as investors continued to enjoy elevated returns across Treasury bills, commercial papers, corporate bonds and money market instruments.
Data released by the FMDQ Group showed that the total debt market size increased by 0.46 per cent week-on-week, reflecting sustained activity in the fixed-income market amid a high-interest-rate environment.
Yields remained attractive across major asset classes, with several instruments offering returns above 20 per cent.
In the Treasury bill market, the benchmark instrument maturing on June 17, 2027, delivered the highest return of 20.46 per cent, representing an increase of 0.80 percentage points from the previous week. The September 17, 2026, Treasury bill yielded 16.82 per cent, while the December 17, 2026, instrument closed at 17.62 per cent.
The elevated yields underscore continued investor demand for government securities as monetary conditions remain tight and fixed-income instruments continue to offer attractive real returns relative to other asset classes.
Performance was mixed in the sovereign bond market. The 14.55 per cent FGN April 2029 bond closed at a yield of 17.07 per cent, slightly lower than the previous week, while the 12.40 per cent FGN March 2036 bond rose by 1.83 percentage points to 16.79 per cent. The 14.80 per cent FGN April 2049 bond also advanced to 15.17 per cent.
Corporate debt instruments continued to offer some of the highest yields in the market. Johnvents Industries Limited’s commercial paper maturing on December 29, 2026, yielded 22.65 per cent despite a marginal decline from the previous week, while Dangote Sugar Refinery Plc’s commercial paper due in July 2026 offered a return of 21.00 per cent.
In the corporate bond segment, Axxela Funding 1 (Natural Gas) Plc’s May 2027 bond yielded 21.06 per cent, while Dangote Industries Funding Plc’s December 2032 bond closed at 19.41 per cent. NSP-SPV PowerCorp Plc’s February 2034 bond rose to 19.12 per cent.
Money market rates also remained elevated, highlighting persistent liquidity tightness in the financial system. The Open Repo rate held steady at 22.00 per cent, while the Overnight rate edged higher to 22.20 per cent.
The combination of strong yields across government securities, corporate debt and money market instruments continues to reinforce the appeal of fixed-income investments, even as the debt market expands and competition for capital remains intense.
