FG Targets N800bn in February Bond Auction

The Federal Government is set to raise N800 billion from the domestic debt market through its February 2026 bond auction, according to details released by the Debt Management Office.

The offer comprises three re-opened instruments: N400 billion of the 17.95% FGN June 2032 bond, N300 billion of the 19.89% FGN May 2033 bond, and N100 billion of the 19.00% FGN February 2034 bond. The auction is slated for February 23, with settlement scheduled two days later.

The proposed issuance is significantly higher than the N350 billion offered in February 2025, representing more than double last year’s figure. However, it is slightly below the N900 billion offered in January 2026.

Unlike the February 2025 auction, which included a five-year instrument, this month’s offer is concentrated on seven-year and 10-year tenors. Analysts say this suggests a deliberate move to extend the maturity profile of government debt and ease short-term refinancing risks.

Interest rates remain elevated. While the seven-year bond carries a slightly lower coupon compared to January’s similar offering, the 10-year papers remain priced close to 20 per cent, reflecting tight domestic financial conditions and the high cost of borrowing.

Despite being lower than January’s record issuance, the N800 billion offer underscores the government’s continued reliance on the local bond market to finance budgetary needs amid sustained fiscal pressures.