FG Targets ₦800 Billion in February Bond Auction

Nigeria’s Debt Management Office (DMO) has announced plans to raise ₦800bn through its February 2026 Federal Government bond auction.

The offer, published on the agency’s website Monday, is scheduled for February 23, with settlement on February 25. It represents a sharp increase compared to February 2025, when ₦350bn was offered, but slightly below January 2026’s record ₦900bn issuance.

According to the circular, the February auction consists of:

• ₦400bn of 17.95% FGN JUN 2032 (seven-year re-opening)
• ₦300bn of 19.89% FGN MAY 2033 (10-year re-opening)
• ₦100bn of 19.00% FGN FEB 2034 (10-year re-opening)

This brings the total to ₦800bn. The issuance reflects a year-on-year increase of ₦450bn, translating to a 128.6% rise compared to February 2025.

Longer Tenors, High Rates

Unlike February 2025, which included a five-year instrument, the February 2026 auction is concentrated entirely on seven-year and 10-year tenors.

This structure is designed to lengthen the average maturity of domestic debt and reduce near-term refinancing pressure.

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

The 10-year instruments are priced at 19.00% and 19.89%, reflecting Nigeria’s elevated interest rate environment.

Comparison With January

In January 2026, the DMO offered ₦900bn, including ₦300bn of 18.50% FGN FEB 2031, ₦400bn of 19.00% FGN FEB 2034, and ₦200bn of 22.60% FGN JAN 2035.

The February auction is ₦100bn lower, representing an 11.1% decline month-on-month.

The seven-year coupon has dropped from 18.50% in January to 17.95% in February. Notably, the 10-year FGN JAN 2035 bond carried a 22.60% coupon, significantly higher than the February 2026 10-year papers.

Although smaller than January’s record issuance, the February auction is more than double the size of February 2025 and priced at rates close to 18–20%.

This reflects the government’s continued reliance on domestic borrowing to finance fiscal operations amid high interest rates.