The Debt Management Office (DMO) has announced plans to raise N800 billion through its February 2026 Federal Government bond auction, marking a major increase compared to what was offered during the same period last year.
According to the bond offer circular released on the DMO’s website on Monday, the N800bn offer will be made up of three bond instruments: N400bn for the 17.95% FGN JUN 2032 (seven-year re-opening), N300bn for the 19.89% FGN MAY 2033 (10-year re-opening), and N100bn for the 19.00% FGN FEB 2034 (10-year re-opening).
The auction is scheduled to hold on February 23, 2026, while settlement is expected on February 25, 2026.
This planned issuance represents a sharp jump from February 2025, when the DMO offered N350bn, consisting of N200bn for the 19.30% FGN APR 2029 and N150bn for the 18.50% FGN FEB 2031.
With the new N800bn target, the Federal Government is seeking N450bn more than what was offered last year, translating to a 128.6% increase, meaning the amount is now more than double the February 2025 figure.
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Analysts also note a shift in maturity structure. Unlike the February 2025 offer that included a five-year bond, the February 2026 offer is focused entirely on seven-year and 10-year instruments, suggesting an effort to extend the maturity of domestic debt and reduce refinancing pressure in the short term.
Although borrowing costs remain high, the seven-year bond coupon has dropped slightly from 18.50% in February 2025 to 17.95% in February 2026. However, the 10-year bonds are still priced between 19.00% and 19.89%, reflecting the country’s high interest rate environment.
Compared to January 2026, when the DMO offered a record N900bn, the February offer is N100bn lower, representing an 11.1% decline. Still, the February 2026 auction remains one of the biggest monthly offerings in recent times, showing the government’s growing reliance on domestic borrowing to fund its fiscal obligations.
