The Debt Management Office has unveiled plans to raise N800bn through its February 2026 Federal Government bond auction, marking a sharp year-on-year increase though slightly lower than January’s record N900bn offer.
According to the bond circular published on the agency’s website on Monday, the offer comprises:
- 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)
The auction is scheduled for February 23, 2026, with settlement set for February 25.
In February 2025, the DMO offered N350bn, made up of N200bn of 19.30% FGN APR 2029 (five-year re-opening) and N150bn of 18.50% FGN FEB 2031 (seven-year re-opening).
The planned N800bn issuance represents a N450bn increase compared to February 2025, translating to a 128.6 per cent rise. This means the Federal Government is seeking more than double the amount offered in the corresponding period last year.
The maturity profile also reflects a strategic shift. 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 lengthen the average maturity of domestic debt and reduce near-term refinancing pressures.
Borrowing costs remain elevated. The seven-year bond carries a coupon of 17.95 per cent, slightly below the 18.50 per cent on the comparable tenor offered in January 2026.
However, the 10-year instruments are priced at 19.00 per cent and 19.89 per cent, reflecting the prevailing high interest rate environment.
On a month-on-month basis, the February offer is N100bn lower than January’s N900bn issuance, representing an 11.1 per cent decline.
In January 2026, the DMO offered:
- N300bn of 18.50% FGN FEB 2031 (seven-year re-opening)
- N400bn of 19.00% FGN FEB 2034 (10-year re-opening)
- N200bn of 22.60% FGN JAN 2035 (10-year re-opening)
Notably, the 10-year FGN JAN 2035 bond in January carried a 22.60 per cent coupon, significantly higher than the 19.89 per cent and 19.00 per cent attached to the February 2026 10-year papers.
Although the February offer is lower than January’s record level, it remains more than twice the size of the February 2025 issuance and is priced within the 18 to 20 per cent range, underscoring the elevated cost of domestic debt financing.
