Federal Government February 2026 bond auction targets N800bn, up 128.6% year on year, with seven and 10-year tenors

The Federal Government of Nigeria has announced plans to raise N800bn through the Federal Government February 2026 bond auction, reflecting a sharp year-on-year increase in domestic borrowing despite a slight decline from January’s record offer.

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The offer, published on Monday by the Debt Management Office, comprises N400bn of 17.95 per cent FGN JUN 2032, a seven-year re-opening; N300bn of 19.89 per cent FGN MAY 2033, a 10-year re-opening; and N100bn of 19.00 per cent FGN FEB 2034, also a 10-year re-opening.

The auction is scheduled for February 23, 2026, with settlement fixed for February 25, 2026.

In February 2025, the Federal Government, through the Debt Management Office, offered N350bn, consisting of N200bn of 19.30 per cent FGN APR 2029 and N150bn of 18.50 per cent FGN FEB 2031.

The planned N800bn issuance represents a year-on-year increase of N450bn, translating to a 128.6 per cent rise.

The Federal Government is therefore seeking more than double the amount offered in February 2025.

The maturity profile also signals a strategic shift. While the February 2025 offer included a five-year instrument, the Federal Government February 2026 bond auction is concentrated entirely on seven-year and 10-year tenors.

Analysts say the structure suggests an effort to lengthen the average maturity of domestic debt and reduce near-term refinancing pressure.

Borrowing costs remain elevated. The seven-year bond carries a coupon of 17.95 per cent, slightly lower than the 18.50 per cent offered on a comparable tenor in January 2026.

The 10-year instruments are priced at 19.00 per cent and 19.89 per cent, in line with prevailing high interest rates.

Month-on-month, the February N800bn offer is N100bn lower than January’s N900bn issuance, representing an 11.1 per cent decline.

In January 2026, the Federal Government offered N300bn of 18.50 per cent FGN FEB 2031, N400bn of 19.00 per cent FGN FEB 2034, and N200bn of 22.60 per cent FGN JAN 2035.

Notably, the 22.60 per cent coupon attached to the January 2035 bond stands significantly above the rates on the February 2026 10-year papers.

Although the February offer is below January’s record level, it remains more than twice the size of the February 2025 issuance.