FG to Raise N800bn in February Bond Auction

The Debt Management Office (DMO) has announced plans to raise ₦800 billion through its February 2026 Federal Government bond auction, a sharp increase compared to the ₦350 billion offered in February 2025.

According to the bond offer circular, the issuance comprises ₦400 billion of 17.95% FGN JUN 2032 (seven-year re-opening), ₦300 billion of 19.89% FGN MAY 2033 (10-year re-opening), and ₦100 billion of 19.00% FGN FEB 2034 (10-year re-opening).

The auction is scheduled for February 23, 2026, with settlement on February 25. The planned issuance represents a year-on-year increase of ₦450 billion, or 128.6%, more than double the February 2025 offer.

Unlike last year’s mix, which included a five-year instrument, the February 2026 auction focuses entirely on seven- and 10-year tenors, reflecting efforts to lengthen debt maturity and ease near-term refinancing pressures.

Borrowing costs remain elevated. The seven-year bond carries a coupon of 17.95%, slightly lower than the 18.50% offered in February 2025.

The 10-year bonds are priced at 19.00% and 19.89%, consistent with Nigeria’s high interest rate environment.

A month-on-month comparison shows the February offer is ₦100 billion lower than January’s record ₦900 billion issuance, which included a 22.60% coupon on the FGN JAN 2035 bond.

The decline in the seven-year coupon from 18.50% in January to 17.95% in February suggests modest relief in borrowing costs, though rates remain close to 18–20%, underscoring the elevated cost of domestic debt financing.

Taken together, the February auction highlights the government’s continued reliance on domestic borrowing, with larger issuance volumes and longer maturities aimed at balancing fiscal needs against refinancing risks.