Abuja, Nigeria – The Debt Management Office has announced plans to raise N800 billion (approximately $511 million) through a Federal Government bond auction scheduled for February 23, 2026, as borrowing costs remain elevated near 20 percent.
Okay News reports that the offer circular, published on the agency’s website Monday, shows the government is offering three instruments: N400 billion of 17.95 percent bonds maturing in 2032, N300 billion of 19.89 percent bonds maturing in 2033, and N100 billion of 19 percent bonds maturing in 2034. The size represents a sharp increase from the N350 billion offered in February 2025, a year-on-year rise of 128.6 percent.
However, the February offer is lower than January’s N900 billion, reflecting an 11.1 percent month-on-month reduction. The maturity structure has shifted toward longer tenors, with no five-year instrument included this time, suggesting a deliberate move to extend debt maturities and reduce near-term refinancing pressure.
On pricing, rates show mixed signals. The seven-year bond coupon declined slightly from 18.50 percent in January to 17.95 percent in February. The 10-year papers carry coupons of 19 percent and 19.89 percent, notably lower than the 22.60 percent attached to a 10-year bond offered in January. Despite this moderation, borrowing costs remain close to 19 percent for long-dated paper, reflecting tight liquidity and sustained monetary policy restraint.
The February bond auction reflects a recalibration rather than a retreat. While the Debt Management Office trimmed the offer size from January’s level, it is still borrowing at more than double last February’s amount and at interest rates hovering around 18 to 20 percent. This highlights the elevated cost of domestic debt financing, even as the government seeks to manage its borrowing programme amid persistent fiscal pressures. The outcome of the bond auction will provide further insight into investor demand and prevailing market sentiment.
 through a Federal Government bond auction scheduled for February 23, 2026, as borrowing costs remain elevated near 20 percent.){kind=link}