Another thanks for hinting that I correctly bind the query...the problem was in my face the whole time...it was my failure to bind the main query that caused the issue...
SELECT
COALESCE('SELECT NEXT VALUE FOR ' ||
(SELECT
RTRIM(CAST(SEQSCHEMA AS CHAR(30))) ||'.'|| RTRIM(CAST(SEQNAME AS CHAR(30)))
FROM
SYSIBM.SYSSEQUENCES SYSSEQ_B
WHERE
SYSSEQ_B.SEQNAME=SYSSEQ_A.SEQNAME
AND
SYSSEQ_B.SEQSCHEMA=SYSSEQ_A.SEQSCHEMA
AND
SYSSEQ_B.LASTASSIGNEDVAL IS NULL
) ||
' FROM SCHEMA_A.DUAL;',';')
FROM
SYSIBM.SYSSEQUENCES SYSSEQ_A
WHERE
SYSSEQ_A.SEQSCHEMA in (SCHEMA_A,'SCHEMA_B','SCHEMA_C')
AND
SYSSEQ_A.LASTASSIGNEDVAL IS NULL
;