FG to Borrow N800bn as the Federal Government moves to raise fresh funds through its February 2026 bond auction, marking a sharp jump from the same period last year.
The Debt Management Office (DMO) confirmed it will offer a total of N800bn on February 23, 2026, with settlement set for February 25. The figure is lower than January’s record N900bn, but far above the N350bn offered in February 2025.
The new offer includes N400bn of 17.95% FGN JUN 2032 (seven-year re-opening), N300bn of 19.89% FGN MAY 2033 (10-year re-opening), and N100bn of 19.00% FGN FEB 2034 (10-year re-opening).
This means FG to Borrow N800bn represents a N450bn year-on-year increase. That is a 128.6 percent surge compared to February 2025, when N200bn of 19.30% FGN APR 2029 and N150bn of 18.50% FGN FEB 2031 were offered.
The structure of the issuance has shifted. Unlike last year’s mix, which included a five-year bond, the 2026 auction focuses strictly on seven-year and 10-year tenors. Analysts say this signals a strategy to extend debt maturity and ease short-term refinancing pressure.
Interest rates remain high. The seven-year bond carries a 17.95 percent coupon, slightly below January’s 18.50 percent for a similar tenor. However, the 10-year papers are priced between 19.00 percent and 19.89 percent, reflecting Nigeria’s elevated borrowing costs.
In January 2026, the DMO offered N300bn of 18.50% FGN FEB 2031, N400bn of 19.00% FGN FEB 2034, and N200bn of 22.60% FGN JAN 2035. Notably, the January 2035 bond carried a steep 22.60 percent coupon, much higher than February’s 10-year offerings.
Although FG to Borrow N800bn is 11.1 percent lower than January’s N900bn record, it remains more than double the February 2025 issuance. The move underscores the government’s heavy reliance on domestic debt markets amid persistently high interest rates.
Market watchers will now track investor appetite and yield movements at the February auction.
