The Debt Management Office has announced plans to raise N800 billion through its February 2026 Federal Government bond auction, reflecting a substantial increase compared with February 2025, though slightly lower than the record N900 billion issued in January.
According to the DMO’s bond offer circular published on Monday, the February auction will feature:
N400 billion of 17.95% FGN JUN 2032 (seven-year re-opening)
N300 billion of 19.89% FGN MAY 2033 (10-year re-opening)
N100 billion of 19.00% FGN FEB 2034 (10-year re-opening)
The auction is scheduled for February 23, 2026, with settlement set for February 25. By comparison, the DMO offered N350 billion in February 2025, consisting of N200 billion of the 19.30% FGN APR 2029 (five-year) and N150 billion of the 18.50% FGN FEB 2031 (seven-year). The planned February issuance represents a 128.6% increase year-on-year, more than doubling last year’s figure.
The maturity structure shows a shift toward longer-term debt, with the February offer focused entirely on seven- and 10-year bonds, compared with February 2025, which included a five-year instrument. This move is seen as an effort to extend the average maturity of domestic debt and reduce near-term refinancing pressures.
Interest rates 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 instruments are priced at 19.00% and 19.89%, reflecting the prevailing high interest rate environment.
Compared with January 2026’s record N900 billion auction, the February offering is N100 billion smaller, representing an 11.1% decline. January’s sale included the 22.60% FGN JAN 2035 10-year bond, much higher than February’s comparable instruments.
While the February sale is smaller than January’s, it remains more than double February 2025’s issuance. The pricing, ranging from 18% to 20%, underscores the persistently high cost of domestic borrowing for the Federal Government.
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