The Debt Administration Workplace (DMO) has unveiled plans to boost N800 billion by means of its February 2026 Federal Authorities bond public sale, representing a pointy improve in comparison with the identical interval final yr however a discount from January’s record-sized supply.
This was in keeping with the bond supply round revealed on the DMO’s web site on Monday.
The dimensions and construction of the supply mirror a continued reliance on the home debt market, whilst borrowing prices stay elevated.
What the info exhibits
In response to the supply round, the DMO is providing N400 billion of 17.95% FGN JUN 2032 (7-year re-opening), N300 billion of 19.89% FGN MAY 2033 (10-year re-opening), and N100 billion of 19.00% FGN FEB 2034 (10-year re-opening), bringing the overall to N800 billion.
The public sale is scheduled for February 23, 2026, with settlement on February 25, 2026.
In February 2025, the DMO supplied N350 billion, comprising N200 billion of 19.30% FGN APR 2029 (5-year re-opening) and N150 billion of 18.50% FGN FEB 2031 (7-year re-opening).
Towards that backdrop, February 2026’s N800 billion represents a year-on-year improve of N450 billion, or 128.6%. The federal government is subsequently in search of greater than twice the quantity it supplied within the corresponding month of 2025.
Past dimension, the maturity construction has shifted. Whereas the February 2025 issuance included a 5-year instrument, the February 2026 programme is concentrated completely on 7-year and 10-year tenors.
This means a deliberate transfer to increase the typical maturity of home debt and cut back near-term refinancing stress.
On charges, the image is combined however stays elevated. The 7-year bond in February 2026 carries a coupon of 17.95%, barely decrease than the 18.50% on the 7-year supplied in February 2025.
Nonetheless, the 10-year devices now carry coupons of 19.00% and 19.89%, broadly according to the excessive rate of interest atmosphere.
Total, borrowing prices stay near 19% for long-dated paper, reflecting tight liquidity and sustained financial coverage restraint.
February supply dips 11% from January’s N900 billion
A month-on-month comparability exhibits that the February supply is decrease than the January 2026 supply.
In January 2026, the DMO supplied a complete of N900 billion, comprising N300 billion of 18.50% FGN FEB 2031 (7-year re-opening), N400 billion of 19.00% FGN FEB 2034 (10-year re-opening), and N200 billion of twenty-two.60% FGN JAN 2035 (10-year re-opening).
- In contrast with January’s N900 billion, the February 2026 supply of N800 billion displays a discount of N100 billion, or 11.1% month-on-month.
- On pricing, February exhibits some moderation on the margin. The 7-year fee declined from 18.50% in January to 17.95% in February.
- Extra notably, the 10-year FGN JAN 2035 bond supplied in January carried a coupon of twenty-two.60%, considerably increased than the 19.89% and 19.00% hooked up to February’s 10-year papers.
- This means some easing on the lengthy finish of the curve in comparison with January’s degree, despite the fact that charges stay excessive by historic requirements.
- Taken collectively, February 2026 displays a recalibration fairly than a retreat.
Whereas the DMO has trimmed the supply dimension from January’s N900 billion, it’s nonetheless borrowing at greater than double final yr’s February degree and at rates of interest hovering round 18 to twenty%, displaying the elevated value of home debt financing.
