The Debt Management Office has announced plans to raise N800bn through its February 2026 Federal Government bond auction, reflecting a sharp year-on-year increase, though slightly below the record N900bn offered in January.
According to the bond offer circular published by the agency, the issuance will consist of:
N400bn of 17.95% FGN JUN 2032 (seven-year re-opening)
N300bn of 19.89% FGN MAY 2033 (10-year re-opening)
N100bn of 19.00% FGN FEB 2034 (10-year re-opening)
This brings the total offer to N800bn. The auction is scheduled for February 23, 2026, with settlement set for February 25, 2026.
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In February 2025, the DMO offered N350bn, comprising:
N200bn of 19.30% FGN APR 2029 (five-year re-opening)
N150bn of 18.50% FGN FEB 2031 (seven-year re-opening)
The planned N800bn issuance represents a N450bn increase compared to February 2025 — a 128.6% year-on-year rise.
This means the Federal Government is seeking more than double the amount it offered in the same month last year.
Unlike February 2025, which included a five-year instrument, the February 2026 issuance focuses entirely on seven-year and 10-year tenors.
This suggests an effort to extend the average maturity of domestic debt and reduce near-term refinancing pressure.
Borrowing costs remain elevated:
The seven-year bond carries a 17.95% coupon, slightly lower than the 18.50% on the comparable tenor in February 2025.
The 10-year instruments are priced at 19.00% and 19.89%, reflecting the prevailing high-interest-rate environment.
Although the February offer is N100bn lower than January’s N900bn issuance, it remains more than twice the size of February 2025’s offer and is priced at rates close to 18–20%, underscoring the sustained high cost of domestic debt financing for the Federal Government.
