The Debt Management Office (DMO) has unveiled plans to raise N800bn from the February 2026 Federal Government bond auction, reflecting a sharp increase compared to the corresponding period last year, though lower by 11.1 per cent lower than the record N900bn offered in January.
The bond offer circular published on the agency’s website on Monday, the offer comprised 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).
The document indicated that bond auction had been scheduled for February 23, 2026, with settlement on February 25, 2026.
The planned N800bn issuance for February 2026 represented an increase of N450bn year-on-year borrowing or 128.6 per cent rise from the January 2025 offer in the debt instrument market.
- Advertisement -
In February last year, the DMO offered N350bn, comprising 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).
According to the circular, the maturity structure of the February 2026 bond issuance is on seven-year and 10-year tenors, implying efforts by the government to stretch the average maturity of domestic debt and reduce near-term refinancing pressure on its revenues.
While the seven-year bond carries a coupon rate of 17.95 per cent, slightly lower than the 18.50 per cent on the comparable tenor in February 2025, the 10-year debt instruments are priced at 19.00 per cent and 19.89 per cent based on the prevailing high interest rate on borrowing in the country.
