The Debt Management Office (DMO) has announced plans to raise N800bn through its February 2026 Federal Government bond auction, a significant increase compared with the same period last year, though slightly below the record N900bn offered in January.
According to the bond offer circular published on the agency’s website on Monday, the issuance consists of N400bn of 17.95 per cent FGN JUN 2032 (seven-year re-opening), N300bn of 19.89 per cent FGN MAY 2033 (10-year re-opening), and N100bn of 19.00 per cent FGN FEB 2034 (10-year re-opening), bringing the total to N800bn.
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 per cent FGN APR 2029 (five-year re-opening) and N150bn of 18.50 per cent FGN FEB 2031 (seven-year re-opening). The planned N800bn issuance for February 2026 therefore represents a year-on-year increase of N450bn, equivalent to a 128.6 per cent rise.
This means the Federal Government is seeking more than double the amount raised in the corresponding period last year.
The maturity structure also reflects a shift in strategy. While the February 2025 offer included a five-year instrument, the February 2026 issuance is focused entirely on seven-year and 10-year tenors, indicating an effort to extend the average maturity of domestic debt and reduce short-term refinancing pressure.
On pricing, borrowing costs remain elevated. The seven-year bond carries a coupon of 17.95 per cent, slightly lower than the 18.50 per cent on the comparable tenor offered in February 2025.
However, the 10-year instruments are priced at 19.00 per cent and 19.89 per cent, reflecting the prevailing high-interest-rate environment.
A month-on-month comparison shows 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 per cent FGN FEB 2031 (seven-year re-opening), N400bn of 19.00 per cent FGN FEB 2034 (10-year re-opening), and N200bn of 22.60 per cent FGN JAN 2035 (10-year re-opening).
The seven-year coupon has declined from 18.50 per cent in January to 17.95 per cent in February. Notably, the 10-year FGN JAN 2035 bond offered 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.
Overall, although the February offer is slightly lower than January’s record level, it remains more than twice the size of the February 2025 issuance and is priced at rates close to 18–20 per cent, underscoring the elevated cost of domestic debt financing.
